Soft rents offered rare breathing room - but not enough to close the buy-rent gap
The US rental market has moved into its most budget-friendly stretch in four years, with national median asking rents posting a 30th straight annual decline in February, according to Realtor.com.
The median asking rent for 0-2 bedroom units across the 50 largest metros slipped to $1,667. That's down 1.7% year over year and $90 below the summer 2022 peak, even as rents stayed more than 14% above pre-pandemic levels.
Realtor.com chief economist Danielle Hale said the sustained softening has finally translated into noticeable savings.
“The persistent softness we're seeing is increasingly translating into real savings for renters who, for a long time, felt the market was out of reach,” Hale said.
“This four-year low is a result of a prolonged downward trend meeting typical February seasonal softness.”
Sun Belt investors feel the cost of rent relief
The steepest cuts have clustered in the Sun Belt and South, where a construction surge flooded the market with new multifamily units.
Fifteen major markets posted rents at least 10% below their pandemic-era highs, led by Austin, Texas, where the median asking rent of $1,357 was 18.2% under its 2022 peak.
Birmingham, Alabama, came in at $1,125, down 17.1% from peak; Memphis, Tennessee, at $1,140, down 16.1%; and Phoenix, Arizona, at $1,427, down 15.6%.
The following all sat at least 10% below local peaks as well:
Atlanta, Georgia - $1,543
Las Vegas, Nevada - $1,423
San Diego, California - $2,626
Nashville, Tennessee - $1,457
Raleigh, North Carolina - $1,437
Denver, Colorado - $1,720
San Antonio, Texas - $1,188
Miami, Florida - $2,235
Jacksonville, Florida - $1,456
Seattle, Washington - $1,905
Dallas–Fort Worth, Texas - $1,408
“In markets like Austin and Phoenix, renters are benefiting from deep post-pandemic rent relief, driven by a wave of new supply,” Realtor.com economist Jiayi Xu said. “But that relief isn't universal.”
For lenders and multifamily owners, national research pointed to more of the same: below-trend rent growth as Sun Belt markets worked through heavy deliveries, even while long-term demand stayed intact, recent outlooks from Freddie Mac and CBRE suggested.
Rents cool, but owning still cost more than renting
Even with falling asking rents, renting has generally remained cheaper than owning in major metros.
According to a LendingTree analysis of Census data, homeowners with a mortgage paid a median $2,035 a month in 2024, compared with $1,487 for renters. That's a 36.9% premium that translated to $548 more each month, or $6,576 a year.
Meanwhile, RealPage’s 2025 review suggests that the US multifamily market in 2026 would be defined less by a glut of new units and more by renters choosing to stay put as owning a home remain out of reach for many.
A Clever Offers study revealed that 53% of Americans doubt they’ll ever own their dream home. Similarly, according to the Knightvest Capital’s Multifamily Renter Sentiment Report, a growing number of renters choose to stay put and embrace apartment living as a long-term lifestyle.
Coastal markets move back toward new peaks
Five metros were within 3% of their all-time rent highs. Virginia Beach, Virginia, registered a median asking rent of $1,620, just 1.7% below peak.
Kansas City, Missouri, stood at $1,387, Baltimore, Maryland, at $1,810, and Richmond, Virginia, at $1,507, while San Jose, California, remained one of the nation’s priciest markets at $3,331.
“In places like Virginia Beach, the window is closing fast,” Xu said. “And in markets like Kansas City, there was never any real relief to begin with - what looks like a dip is nothing more than a seasonal pause.”
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