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Apartment rents have continued to decline entering 2026, as the national median rent fell to $1,353 in January, a decrease of 1.4% compared to January 2025, according to Apartment List.
This marks the fourth consecutive winter with a notable offseason dip, the largest annual decline since September 2023, and the lowest January rent recorded since 2022. Overall, rents are now 6.2% lower than their peak in the summer of 2022.
The national vacancy rate also saw a significant increase, reaching 7.3% in January, which is the highest on record since Apartment List began tracking this data in 2017.
In addition to this, apartments are taking longer to lease, with an average of 41 days to fill a unit. This is four days longer than in January 2025 and represents another high point for the index.
Chris Salviati, chief economist at Apartment List, noted that early last year, there were hopes for a rebound in annual rent growth, but conditions have changed significantly.
The surge in apartment construction has peaked, but a substantial number of new units are still entering the market. This increase in supply is facing weaker demand due to a tighter job market and slower household formation rates.
Looking at specific regions, most annual declines in rent are occurring in the South and Mountain West areas.
For instance, Austin, Texas, has the softest rental market in the nation, experiencing a median rent drop of 6.3% from the previous year. Other areas with notable declines include New Orleans, San Antonio, Tucson, Arizona, and Denver.
Conversely, some markets are still witnessing rent increases despite the overall slowdown. Virginia Beach, Virginia, leads with a rent growth of 5%, followed closely by San Jose and San Francisco in California, Chicago, and Providence, Rhode Island.
Salviati emphasized that while the wave of construction that has been driving current market conditions is beginning to wane, future market shifts will depend largely on rental demand.
The outlook for this demand has become more uncertain due to ongoing weaknesses in the labor market and broader economic conditions.
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