Top U.S. Cities Where Rent Is Dropping

After several years of high rent prices, renters in most parts of the United States are finally seeing some relief. Recent data from Realtor.com shows that in five major cities, average rent prices have dropped more than 5% in the past year.
 

Top Cities Where Rents Are Falling

 

• Denver, Colorado: Rents down 7% from last year, with a typical price of $1,785 per month.
• Austin, Texas: Down 6.5%, with rents at $1,436.
• Phoenix, Arizona: Down 6.2%, with rents at $1,471.
• Raleigh, North Carolina: Down 5.9%, with rents at $1,471.
• Nashville, Tennessee: Down 5.1%, with rents at $1,515.

Other major cities seeing rent declines include San Diego, Jacksonville, Riverside, Las Vegas, and Louisville.
 

Why Are Rents Going Down?

Rent prices went up quickly during the pandemic, mostly because there weren't enough rental properties and the prices of buying a home also went up. As a result, the average rent for smaller apartments (0-2 bedrooms) peaked at over $1,750 in August 2022.

Now, with more apartments and houses available to rent, average prices have come down slightly. As of the latest report, average rent is $1,713, which is $46 less than the peak — a 2.6% decrease.

While this drop is small compared to earlier rent increases, it still gives renters more options, and more people are choosing to move to find better deals.

Some cities, like Las Vegas, Atlanta, and Austin, have seen rent fall more than 13% since their height in 2022.
 

What This Means for Renters

While rents are still higher than they were before the pandemic (up 17% compared to 2019), the recent drop is a good sign for those looking for a place to live.

With prices falling, more renters are moving to take advantage of savings.

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