Apartment Rents Declined Annually in August

Renters in the 50 largest U.S. metro areas saw a slight dip in median asking prices last month amid rising concessions.

Updated on Sept. 18, 2026 in Apartments

Bold vector editorial illustration of apartment keys next to a silhouette of a building, representing the cooling rental market. — Median apartment rents declined 0.9 percent annually in August as new supply and high vacancy rates forced landlords to increase concessions. AI Illustration. Upload story photo >

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The median asking rent for studios to two-bedroom apartments fell 0.9 percent to $1,699 in August compared to the same month last year. While the national trend shows an annual decrease, monthly rents did rise slightly by 0.24 percent between July and August 2026.

Why it matters

High vacancy rates and a surplus of new multifamily housing construction are pressuring landlords to lower prices or offer move-in incentives. This environment has shifted leverage toward tenants, who are increasingly finding units bundled with promotional offers.

The median asking rent of $1,699 in August represents a 0.9 percent decline from August 2025. Additionally, 43.5 percent of rental listings now offer concessions, helping tenants secure potential savings through rent-free months or waived application fees.

The players

Realtor.com

A real estate marketplace that tracks and projects housing market trends including rent costs and supply data.

The details

Landlords are increasingly using concessions like rent-free months, rent credits, and application fee waivers to attract tenants and combat high vacancy rates. Although multifamily housing starts fell 22.5 percent in August compared to July, an increase in building permits suggests a continued pipeline of new supply. This influx of units is expected by industry observers to keep pressure on rent growth throughout the fall.

August 2019 served as the baseline year for median rent comparisons.
August 2022 marked the historical peak for median asking rent.
August 2025 provided the prior-year data point for annual trend reporting.
August 2026 served as the current monthly reporting period.
Q1 2027 is the projected timeframe for rental supply to reach 50.5 million units.

Money Landscape

The current annual decline marks a departure from the historical peak for median asking rent observed in August 2022. This shift follows years of rising costs as developers increase the total available rental supply nationwide.

Renters looking for a new apartment should prioritize listings that feature concessions, as nearly 44 percent of the market now offers incentives. Before signing a lease, discuss the long-term impact of potential rent hikes with a financial professional if the concession only applies to the first month.

The takeaway

The rental market is currently favoring tenants through cooling price growth and widespread move-in incentives. Monitor your local market trends and request a full breakdown of any rent concessions to understand the true annual cost of a new lease.