Rents Decline for 37th Consecutive Month as Concessions Strengthen Tenants’ Negotiating Power

Rental market conditions continued to ease throughout August, providing tenants with enhanced negotiating capacity as the market transitioned into the autumn period. According to the Realtor.com August Rental Report, the national median asking rent for studio, one-bedroom, and two-bedroom units across the nation’s 50 largest metropolitan statistical areas declined 0.9% on an annual basis to $1,699. This represents the thirty-seventh consecutive month during which annual rental declines have been recorded.

The median asking rent currently stands $65, representing a 3.7% reduction from its peak in summer 2022, although it remains $227, or 15.4%, higher than the levels observed in August 2019. The sustained downward trend is generating substantial cost reductions for renters relative to the market’s recent zenith, notwithstanding the fact that rental expenses remain considerably higher than pre-pandemic benchmarks.

During August 2026, all three unit classifications included in the report demonstrated year-over-year declines. Two-bedroom units maintain the greatest premium relative to their pre-pandemic baseline, reflecting a 17.7% increase from August 2019. One-bedroom units have appreciated 14.4% compared to seven years prior, whereas studio units have increased 13.1%.

Top 10 Metros with 50%+ of Listings Offering Concessions:

“Renters are entering the fall with more choices and more negotiating power than they had at the height of the rental market,” said Jiayi Xu, Senior Economist at Realtor.com. “Rents are still above pre-pandemic levels, but 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. We expect the typical seasonal slowdown in monthly rents this fall, with year-over-year declines likely to continue as rental supply works through the market.”

Concessions Hit Highest Level, Renters Gain More Negotiating Power

The prospect of sustained rental relief is underpinned by the multifamily development pipeline. According to Realtor.com’s April 2026 Rental Report, multifamily construction starts and units currently under construction have remained elevated relative to pre-pandemic levels, indicating that additional units would continue entering the market. The 2026 Housing Market Forecast Midyear Update anticipates a 1.2% decline in rents throughout 2026, while emphasizing that the continuation of renter relief hinges on whether the supply of rental units maintains its pace ahead of demand.

Rental concessions, including application fee waivers, rent credits, or complimentary rental periods, enable renters to reduce their overall housing expenses without affecting the property’s listed rental rate. In August, 43.5% of studio, one-bedroom, and two-bedroom rental listings in the 50 largest metropolitan areas provided a concession, representing a 3.1 percentage point increase from 40.4% in the prior year.

The most substantial concession rates were observed in Denver (71.9%), Austin, Texas (70.7%), Las Vegas (69.6%), Nashville, TN (69.0%), and San Antonio (67.9%). Year-over-year concession rate increases occurred in 39 of the 50 metro areas, with Houston, Cincinnati, and New Orleans demonstrating the most significant growth.

In contrast, concession rates experienced the most significant declines in San Jose, CA, and San Francisco, where rental prices increased by 4.7% and 4.5%. These markets may be experiencing heightened rental demand in conjunction with the artificial intelligence-related housing patterns documented in Realtor.com research.

Recent survey data gathered by Avail, a subsidiary of the Realtor.com network, from independent landlords reveals that concessions do not invariably represent a reaction to market conditions; rather, elevated vacancy rates and insufficient renter demand constitute the primary catalysts for landlord action. Among landlords confronting such circumstances, 33.3% proactively extended concessions, 25.9% evaluated their feasibility, and 24.1% reduced base rental rates instead.

Landlords demonstrated preferences for particular incentive types. Among those providing or contemplating concessions, 37.9% selected reduced or eliminated fees, 30.7% enhanced amenities, 25.0% provided complimentary rent periods, and 6.4% offered gift cards or relocation assistance. Nevertheless, 65.7% indicated they would decline to waive security deposits.

This protective measure is evident in comprehensive rental-market statistics: deposit-waiver concessions materialized in fewer than 1% of listings administered by institutional landlords, whereas 30.6% of studio, one-bedroom, and two-bedroom listings featured a complimentary rent period during August. Collectively, these findings indicate that concessions are assuming an increasingly significant role as a competitive mechanism, with landlords deploying them judiciously to provide renters enhanced options while maintaining published rental rates and fundamental safeguards.

To read the full report, click here.