15 US cities where rent is falling in 2023

Prospective homeowners have been having an impossible time finding houses to buy because of the lack of supply and high mortgage rates, but those looking to rent might have better luck finding a place to live.

According to real estate listing website Realtor.com’s rental report for September, last month saw the fifth month in a row of year-over-year rent decline for 0-2 bedroom properties.

Median rent in the country was down 0.7% for 0-2 bedroom properties across the top 50 metros, falling $5 from last month to $1,747. This number is $29 less compared to the peak seen a year ago. This drop in rate in September was not too far from the -0.6% that August experienced.

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Why are rents falling?

According to the same report, there are more newly built apartments that are available to would-be renters.

“An important factor contributing to the softness in the rental market is the increase of multi-family construction which keeps working its way through the pipeline to boost the supply,” according to Realtor.com’s report.

There was a 10.1% increase in the number of multi-family buildings with five or more units completed in September from the previous month, and the increase was 15% compared to the September 2022.

The rise in the number of new apartment buildings is good for renters, but these units are being snapped up quickly. These fast absorption rates means there is an increased demand for affordable rental units.

15 US cities where rent is falling in 2023

Rental prices have gone down the most in Austin, Texas, followed by Dallas, then Orlando, Florida, which is tied with Portland, Oregon.

Here are 15 areas where rent has gone down compared to last year, for 0-2 bedroom properties.