U.S. Rents Keep Falling as Market Patterns Shift and Affordability Improves
The U.S. rental market continued to soften in October, with national rents falling for the 27th straight year-over-year month, according to the latest Realtor.com report. The median asking rent for studio to two-bedroom units across the 50 largest metro areas slipped to $1,696, which is $9 lower than last month and 1.7% below the same time last year.
This marks the third month in a row of month-to-month declines, reflecting both typical fall season cooldown and broader affordability improvements compared to the last few years.
Still, while rents have come down from their 2022 peak, the overall drop remains modest. Today’s median rent is only $63 (3.6%) below the August 2022 peak, and still $245 (16.9%) higher than October 2019, before the pandemic boom. However, when measured against inflation and the sharp rise in for-sale home prices, real rent levels have actually fallen since 2019.
Rents Decline Across All Unit Sizes—But Long-Term Trends Tell a Different Story
Two-bedroom units
- Median rent: $1,877
- Down 1.7% YoY, marking 29 straight months of decline
- Still $299 (18.9%) higher than 2019
One-bedroom units
- Median rent: $1,572
- Down 1.9% YoY
- 29th consecutive yearly drop
- Still 14.7% above 2019
Studios
- Median rent: $1,407
- Down 2.1% YoY, the 26th straight decline
- Still 11.3% higher than 2019
These numbers show a clear pattern: rents have cooled for more than two years, but long-term increases remain sizable, especially compared to pre-pandemic levels.
National Rents by Unit Size – October 2025
| Unit Size | Median Rent | Rent YoY | Months of Decline | Drop From Peak | 6-Year Change |
|---|---|---|---|---|---|
| Overall | $1,696 | -1.7% | 27 | -3.6% | +16.9% |
| Studio | $1,407 | -2.1% | 26 | -5.0% | +11.3% |
| 1-Bedroom | $1,572 | -1.9% | 29 | -5.3% | +14.7% |
| 2-Bedroom | $1,877 | -1.7% | 29 | -4.1% | +18.9% |
Affordability Improvements Are Boosting Rental Search Activity
With more than two years of declining rents, renters are starting to re-enter the market. Realtor.com’s cross-market search data highlights how important it is to understand who is driving demand—locals or newcomers.
Markets dominated by local renters tend to have more stable rent levels because steady in-market demand can soften broader economic swings.
New York Remains the Most Local-Driven Rent Market
- 74.8% of rental views from local residents (Q3 2025)
- Nearly identical to 2019 levels
- Strong rent controls + high home prices = long-term renter base
Despite national rent declines, New York’s median rent rose 1.3% YoY, largely due to its tight supply and limited affordability for would-be buyers. Los Angeles shows similar trends, with rent stabilization and high purchase prices supporting a consistent renter population.
Top Five Markets With the Highest Share of Local Renters
| Rank | Market | Local Views (2025) | Out-of-Market (2025) | Local (2019) | Out-of-Market (2019) | Homeownership Rate |
|---|---|---|---|---|---|---|
| 1 | New York | 74.8% | 25.2% | 74.5% | 25.5% | 49.4% |
| 2 | Chicago | 74.1% | 25.9% | 77.0% | 23.0% | 66.0% |
| 3 | Los Angeles | 69.6% | 30.4% | 66.8% | 33.2% | 46.4% |
| 4 | Dallas | 67.9% | 32.1% | 73.2% | 26.8% | 64.9% |
| 5 | Miami | 64.5% | 35.5% | 69.3% | 30.7% | 57.5% |
Cities like Chicago, Dallas, and Miami have strong pools of long-term renters often college graduates who stay in the area helping maintain stability but limiting ease of entry for newcomers.
Cities Where Newcomers Dominate the Rental Market
In contrast, metros like Raleigh, Richmond, and Nashville are increasingly shaped by renters moving in from other regions. These places combine:
- Lower housing costs
- Strong job markets
- More affordable lifestyles
- Appeal among remote workers and young professionals
These factors have shifted their renter mix sharply toward out-of-market demand.
Top Five Markets Dominated by Out-of-Market Renters
| Rank | Market | Local Views (2025) | Out-of-Market Views (2025) | Local (2019) | Out-of-Market (2019) | Homeownership Rate |
|---|---|---|---|---|---|---|
| 1 | Raleigh, NC | 30.4% | 69.6% | 39.4% | 60.6% | 64.9% |
| 2 | Hartford, CT | 32.2% | 67.8% | 48.9% | 51.1% | 67.9% |
| 3 | Richmond, VA | 33.9% | 66.1% | 46.2% | 53.8% | 62.1% |
| 4 | Providence, RI | 34.0% | 66.0% | 47.7% | 52.3% | 65.7% |
| 5 | Nashville, TN | 35.2% | 64.8% | 41.6% | 58.4% | 70.9% |
These metros have become magnets for remote workers, graduates seeking lower-cost cities, and renters relocating from expensive coastal markets.
A Growing Number of Markets Are Now Driven by Newcomers
Over the past six years, twenty of the top 50 metros have shifted from being local-dominant to newcomer-dominant. These include:
- Detroit
- Philadelphia
- Sacramento
- San Francisco
- Charlotte
Interestingly, no market shifted in the opposite direction. This change highlights how flexible work, rising housing costs, and new lifestyle preferences continue to redraw the rental landscape. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.
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