Rents Decline for 37th Straight Month as Concessions Increase
News related to:Realtor.com® · 2 min read
Rents continue to decline for the 37th consecutive month, according to the latest report from Realtor.com®. The national median asking rent for studio, one-, and two-bedroom properties in the 50 largest U.S. metropolitan areas fell 0.9% year over year to $1,699 in August 2026. This marks the longest streak of annual declines in the rental market since the report began in October 2020.
The median asking rent is now $65, or 3.7%, below its summer 2022 peak, but it remains $227, or 15.4%, above August 2019 levels. Jiayi Xu, senior economist at Realtor.com®, noted that while rents are still above pre-pandemic levels, 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.
Across all unit sizes, rents declined in August 2026. Two-bedroom rents remain the furthest above their pre-pandemic level, up 17.7% from August 2019. One-bedroom rents are 14.4% higher than seven years ago, while studio rents are 13.1% higher. The outlook for continued rent relief is supported by the rental supply pipeline. Realtor.com's April 2026 Rental Report found that multifamily starts and units under construction remained above pre-pandemic norms, suggesting that new units would continue reaching the market.
Concessions, such as waived application fees, rent credits, or a period of free rent, are becoming more common as landlords offer incentives to attract tenants. In August 2026, 43.5% of studio, one-, and two-bedroom rental listings across the 50 largest metros offered a concession, up 3.1 percentage points from 40.4% a year earlier. The highest concession rates were recorded in Denver (71.9%), Austin, Texas (70.7%), Las Vegas (69.6%), Nashville, Tenn. (69.0%), and San Antonio (67.9%). Concession rates increased year over year in 39 of the 50 metros, led by Houston, Cincinnati, and New Orleans.
By contrast, concession rates declined most sharply in San Jose, Calif., and San Francisco, where rents rose 4.7% and 4.5%, respectively. These markets may be seeing stronger rental demand alongside the AI-driven housing trends identified in Realtor.com research.
A survey by Avail, part of the Realtor.com® network, found that high vacancy and weak renter demand are the strongest triggers for concessions. Among landlords facing these conditions, 33.3% actively offered concessions, 25.9% considered them, and 24.1% lowered base rent instead. Landlords favored some incentives over others. Among those who offered or considered concessions, 37.9% chose reduced or waived fees, 30.7% upgraded amenities, 25.0% offered free rent, and 6.4% offered gift cards or moving assistance. However, 65.7% said they would not waive the security deposit.
The findings suggest that concessions are becoming a more important competitive tool, but landlords are using them selectively, giving renters more flexibility while preserving advertised rents and core protections. Realtor.com® expects the typical seasonal slowdown in monthly rents this fall, with year-over-year declines likely to continue as rental supply works through the market.
The report highlights the ongoing shift in the rental market, with landlords increasingly offering concessions to attract tenants. As the market moves into the fall season, renters are likely to have more leverage to negotiate better deals.