Rents Decline for 37th Consecutive Month, Landlords Offer Concessions
National average rents have decreased for over three years as of August 2026. Landlords are increasingly offering concessions to attract renters amid rising vacancies.
U.S. rents have continued to fall for 37 consecutive months, with the trend extending over three years as of August 2026. The national median asking rent dropped 0.9% year-over-year across the 50 largest metro areas, settling at an average of $1,699, according to Realtor.com's Monthly Rent Report. This marks a 3.7% decrease, or $65 less than the summer 2022 average.
The decline is widespread across unit sizes. Studio rents fell by 1.2%, one-bedroom rents by 0.8%, and two-bedroom rents by 0.9%. Despite the ongoing decrease, average asking rents remain elevated compared to pre-pandemic levels. Two-bedroom units are 17.7% higher than August 2019, one-bedrooms are up 14.4%, and studios are 13.1% higher. Overall, rents are still 15.4% above the August 2019 average.
As mortgage rates reach yearly highs, falling rents offer a financial benefit to renters. Additionally, landlords are increasingly offering concessions, such as waived application fees, rent credits, or rent-free periods, to secure tenants. Concessions rose 3.1% year-over-year, with 43.5% of studio, one, and two-bedroom listings offering at least one incentive. Some markets, like Denver, saw significantly higher concession rates, with 71.9% of listings offering them, followed by Austin (70.7%), Las Vegas (69.6%), and Nashville (69.0%).
A survey of independent landlords by Avail, part of Realtor.com's network, indicated that higher concession rates are a response to increased vacancies and weak renter demand. Approximately 33.3% of landlords facing these issues offered concessions, while 25.9% considered them and 24.1% lowered base rent. Jiayi Xu, senior economist at Realtor.com, stated that renters entering the fall season have more options and negotiating power. "Rents are still above pre-pandemic levels, but the combination of continued year-over-year declines, new supply and a growing share of listings with concessions is creating more opportunities for renters to find better deals," Xu said.
However, a few areas, including San Jose and San Francisco, California, experienced the opposite trend with rising rents and declining concessions. The report suggested that strong demand in these locations, potentially fueled by AI-driven wealth, is influencing housing trends.