According to Realtor.com’s latest Rent Report, rents dipped for the second straight month, but affordability gaps persist
Rents continued their downward slide in September, offering a measure of relief for renters across the United States. However, affordability challenges lingered, especially in coastal cities.
According to Realtor.com’s latest Rent Report, the median asking rent for 0–2 bedroom properties in the nation’s 50 largest metros fell to $1,703, a 2.1% drop from a year ago and $10 less than the previous month.
This marks the 26th consecutive annual decline and the second monthly dip since March, signaling a sustained cooling in the rental market.
“Two years of gradual rent declines have given renters a bit more breathing room,” Danielle Hale, chief economist at Realtor.com, said.
“Still, even as a typical household spends a smaller share of income on rent than a year ago, affordability remains stretched in major markets, particularly along the coasts.”
Coastal cities remain out of reach for many renters
The share of income spent on rent dropped to 23.4% in September, down from 24.9% a year earlier. This improvement reflects both modest rent declines and income growth, according to the report.
Year-over-year, rents fell across all unit sizes, with one-bedroom units seeing the largest decrease at 2.3%. The median asking rent for a one-bedroom was $1,582, for a two-bedroom $1,885, and for a studio $1,426.
However, the nation’s most expensive rental markets remained out of reach for many. Renters in Miami, Los Angeles, and New York continued to devote over a third of their income to housing, despite slight improvements from last year.
Miami led the pack, with the typical household spending 37.1% of income on rent, equivalent to a median rent of $2,298. Los Angeles followed at $2,821 (37.0% of income), and New York at $2,903 (36.7%).
Affordable markets and new supply offer hope
On the other hand, Austin overtook Oklahoma City as the most affordable large market, with renters spending just 16.5% of income on a typical lease—$1,411 per month.
Oklahoma City’s median rent was $1,007 (16.9% of income), while Raleigh, N.C., Columbus, Ohio, and Minneapolis also ranked among the most affordable, all with rents under $1,500 and rent-to-income shares below 19%.
“More new rentals coming to market means renters have additional choices and a bit more leverage,” Jiayi Xu, senior economist at Realtor.com, said.
“Greater supply is allowing some renters to find homes that better fit their budgets, though affordability challenges persist in historically high-cost markets.”
Markets in the South and West, including Jacksonville ($1,466), San Diego ($2,703), and Miami, saw the strongest improvements in affordability, driven by increased rental supply.
Jacksonville posted the largest year-over-year improvement, with the rent share of income dropping 3.5 percentage points.
Opportunities for brokers and first-time buyers
A similar report from Apartments.com and CoStar Group revealed that apartment rents fell for the third month in a row in September, dropping 0.3% to an average of $1,712. This was the steepest September decline in more than 15 years and highlights a wider slowdown in the multifamily market.
The continued decline in rents and the slight improvement in affordability present a timely opportunity for mortgage brokers to engage renters who may be reconsidering their long-term housing plans.
As rents ease, brokers can target renters who are now able to save more each month, potentially accelerating their path to homeownership.
The narrowing gap between rent and mortgage payments in some metros may also make the case for buying more compelling, especially for clients who have been on the fence due to high rental costs.
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
