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Asking Rents Decline Year-over-year Amid Soft Demand

Created at 2 Jun · 3:28 PM1 source↑ Market-relevant
IN SHORT

National median rent increased 0.5% month-over-month in May to $1,379, but is down 1.7% year-over-year. This marks the fourth consecutive monthly increase, though year-over-year growth remains near historic lows. The multifamily vacancy rate is 7.2%, decreasing for the first time in over four years.

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Key Numbers

0.5%May national median rent increase month-over-month
-1.7%Year-over-year national rent change
$1,379National median rent
4.4%Rent decline from 2022 peak
7.2%National multifamily vacancy rate

Who's Involved

Apartment List
Provider of national rent report data
Realtor.com
Source for year-over-year rent decline data

↳ Why This Matters

The ongoing decline in asking rents, despite seasonal increases, indicates persistent softness in the rental market, impacting property investors and potentially signaling broader economic trends related to demand and immigration.

Key facts

  • National median rent increased 0.5% month-over-month in May.
  • National median rent is down 1.7% year-over-year.
  • The national median rent has fallen 4.4% from its 2022 peak.
  • The national multifamily vacancy rate is 7.2%, down from its February peak.
  • Vacancy rates are decreasing for the first time in over four years.

Asking rents have shown a year-over-year decline for 33 consecutive months, according to Realtor.com. While May saw a 0.5% month-over-month increase in the national median rent to $1,379, it remains 1.7% lower than a year ago. This trend follows a surge in household formation in 2020-2021, which led to increased rental demand and subsequent construction. However, delayed supply chain completions meant new units entered the market as demand softened. Recent immigration policy changes, with increased deportations and decreased legal immigration, are also likely contributing to downward pressure on rents this year, suggesting soft rents may continue into 2026.

Frequently asked questions

National rents are down 1.7% compared to one year ago. This is the 33rd consecutive month with a year-over-year decline.

The national median rent stands at $1,379 as of May, marking a 0.5% increase from the previous month.

The national multifamily vacancy rate is 7.2%, which has decreased slightly from its February peak and is the first decrease in over four years.

A surge in household formation in 2020-2021 pulled demand forward, while delayed construction led to more units entering the market as demand decreased. Recent immigration policy changes may also be exerting downward pressure.

What Happens Next

01Rental market expected to remain soft in 2026.

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Cadence

How It Developed

2 Jun · 3:15 PM
Asking rents are down 1.7% year-over-year, with the national median rent at $1,379, despite a 0.5% monthly increase.
Bill McBride | CalculatedRisk via PiQSuite

Sources

T1
Asking Rents Continue to Decline Year-over-yearm.piqsuite.com

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