Apartment Rents Fall: January Sees Largest Drop Since 2023

The nation's rental market is experiencing an unusual trend: falling rents.

Jan. 29, 2026 at 3:47pm

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The nation's rental market is experiencing an unusual trend: falling rents. January 2025 saw a 1.4% year-over-year decrease in the national median rent, landing at $1,353, according to Apartment List. This marks the fourth consecutive winter with a significant dip, and the lowest January rent since 2022.

Why it matters

A key driver of this decline is a surge in new apartment construction, which has increased supply and collided with weaker demand fueled by a cooling job market and slower rates of household formation. This regional divergence highlights the importance of local economic conditions, with some areas like the Northeast, Midwest, and parts of the West Coast bucking the national trend.

The details

While the peak of new unit deliveries may be passing, a substantial pipeline remains. This increased supply is colliding with weaker demand, fueled by a cooling job market and slower rates of household formation. The national vacancy rate hit a record high of 7.3% in January, and units are staying vacant longer – an average of 41 days, up from 37 days in January 2024. This indicates landlords are increasingly competing for tenants, leading to concessions and price reductions.

  • January 2025 saw a 1.4% year-over-year decrease in the national median rent.
  • The national vacancy rate hit a record high of 7.3% in January.
  • Units are staying vacant longer – an average of 41 days, up from 37 days in January 2024.

The players

Apartment List

A company that provides data and analysis on the rental market.

Chris Salviati

Chief economist at Apartment List.

National Low Income Housing Coalition

An organization that provides data and advocacy on affordable housing issues.

Yardi Matrix

A company that provides data and analysis on the real estate market.

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What they’re saying

“The rebound in rent growth seen earlier in 2024 stalled out during the summer moving season and has continued to decline into the winter. This suggests that the current conditions are likely to persist for the foreseeable future.”

— Chris Salviati, Chief economist at Apartment List

What’s next

Several factors will shape the future of the rental market. The pace of new construction is slowing, which could eventually alleviate some of the supply pressure. However, the outlook for rental demand remains uncertain. A stronger labor market and increased household formation would be needed to reverse the current trend.

The takeaway

The rental market is in a state of flux. While falling rents offer some relief to renters, the long-term outlook remains uncertain. Staying informed about local market conditions and economic trends is crucial for both renters and landlords alike.