10 U.S. Cities Where Rent Is Finally Dropping

Rent prices are starting to go down in many parts of the United States, giving renters some relief after several years of rising costs. These changes follow a period from 2019 to 2022 when rents went up quickly.

According to a recent report from Realtor.com, there are five cities where the typical asking rent has dropped by more than 5% in the past year. Denver, Colorado leads the way, with rents falling 7%.

Other cities seeing big drops include Austin, Texas (down 6.5%) and Phoenix, Arizona (down 6.2%).

Lower rent prices are making it easier for people to move and look for better deals. The report explains that until now, high rents made many people stay in their current homes.

Now, because rents have gone down, more people feel ready to move instead of staying put.
 

Rent Prices Are Going Down—but Are Still Higher Than Before

Even though rents are going down, they are still higher than a few years ago. The median rent peaked at over $1,750 in August 2022.

Since then, it’s dropped by about $46, or 2.6%, and now the median rent for small units (0-2 bedrooms) is $1,713. The drop is mainly because there are more new rental homes available.

However, the decrease is small compared to the big increase during the COVID-19 pandemic. That time saw fewer rental homes and higher home prices, which pushed rents up.

Compared to 2019, the typical rent is still $249 a month higher, which is a 17% increase.

Some cities have seen rents fall even more since August 2022. For example:
 

• Las Vegas, Nevada: down 13.6%
• Atlanta, Georgia: down 13.6%
• Austin, Texas: down 13.4%

These drops create good opportunities for renters in those places.
 

The 10 Cities Where Rent Is Dropping the Fastest

August was the first month in several months when rents fell, which may mean the rental market is starting to slow down for the season. The report looked at trends in the 50 largest metro areas.

Here are the top 10 cities where rent prices are falling the most (year-over-year change):
 

• Denver, Colorado: $1,785 (-7%)
• Austin, Texas: $1,436 (-6.5%)
• Phoenix, Arizona: $1,471 (-6.2%)
• Raleigh, North Carolina: $1,471 (-5.9%)
• Nashville, Tennessee: $1,515 (-5.1%)
• San Diego, California: $2,720 (-4.9%)
• Jacksonville, Florida: $1,482 (-4.9%)
• Riverside, California: $2,089 (-4.8%)
• Las Vegas, Nevada: $1,443 (-4.6%)
• Louisville, Kentucky: $1,242 (-4.2%)

If you’re looking to rent, these cities might offer better deals now than in the past couple of years.

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