Asking rents decline for the 29th consecutive month

Article originally posted on AZ Big Media on January 20, 2026

Asking rents declined for the 29th consecutive month year over year in December, but the latest data show the easing is increasingly concentrated among higher-priced rentals, leaving many lower-cost renters with little relief. The median asking rent across the 50 largest U.S. metros was $1,689, down 0.7% from December 2024, according to the Realtor.com^® December Rental Report. Metro Phoenix saw asking rents decline by 2.7% year over year.

While the national median rent has softened, the report finds that lower-priced rentals have seen the most rent growth since before the pandemic. From December 2019 to December 2025, the median asking rent rose 16.9%, but the 25th percentile (lower-priced rentals) climbed 19.9%, while the 75th percentile (higher-priced rentals) rose 12.5%. This rent compression suggests that much of the recent rent relief has been felt at the top of the market, while renters seeking more affordable options continue to face outsized price pressure.

“National rent declines have been remarkably persistent, but the distribution of that relief matters,” said Danielle Hale, chief economist at Realtor.com^®. “Many renters shopping for more affordable homes may not feel much change because lower-priced rents have risen more since 2019 while the biggest markdowns have shown up at the high end.”

Rent declines are flattening as 2025 ends

The 0.7% year-over-year decline in December was the smallest annual drop since March, reflecting a pattern of rent declines flattening out at the end of 2025 after larger drops during the summer months. The current December reading is also the lowest since 2021, during the period of rapid rent acceleration that the market is still working through.

Across unit sizes, studio, one-bedroom, and two-bedroom asking rents all declined again year over year, though studios are closer to flat than one- and two-bedroom units.

Rent relief is concentrated at the top of the market

To better understand what renters are experiencing beyond the median, Realtor.com^® examined the 25th and 75th percentiles of asking rent since 2019. The findings show a clear split:

• Median asking rent: +16.9% (Dec 2019 → Dec 2025)
• 25th percentile asking rent: +19.9%
• 75th percentile asking rent: +12.5%

This is due to both a faster run-up through 2022 for lower-priced rentals and now, shallower relief. The softness at the top end of the market has been a key driver of the declining median since 2023, while the lower-cost segment has seen relatively little of that recent relief.

Larger Gains (Dec 2019 → Dec 2022)

• Median asking rent: +19.6%
• 25th percentile asking rent: +21.0%
• 75th percentile asking rent: +16.5%

Shallower Relief (Dec 2022→ Dec 2025)

• Median asking rent: -2.3%
• 25th percentile asking rent: -0.8%
• 75th percentile asking rent: -3.5%

“This pattern also helps explain why many higher-income renters continue to lease,” said Joel Berner, senior economist at Realtor.com^®. “With more concessions and slower price growth at the high end, there’s less urgency to buy and fix the bulk of monthly housing costs, while competition remains tight for renters seeking the most affordable options.”

Where lower-cost rents have risen fastest relative to the median

Rent compression is not uniform across the country. The metros below saw the largest increase in the 25th percentile rent as a share of the median since 2019, an indicator that the bottom of the rent distribution has moved up the most relative to typical rents in those markets, making these markets the most difficult to afford for low-income renters.

Metros with the Most Rent Compression Below the Median Since 2019

By contrast, the following metros saw the largest decrease in the 25th percentile rent as a share of the median since 2019, suggesting it has become relatively easier (compared with the local median) to find lower-cost rentals than it was pre-pandemic.

Metros with the Least Rent Compression Below the Median Since 2019

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