44 out of the 50 largest metros are now renter-friendly or balanced
Rental Market Now Firmly Renter-Friendly as Vacancy Rate Climbs
The U.S. rental market has officially tipped in favor of tenants and turned renter-friendly as the vacancy rate has climbed to 7.6% across the 50 largest metros.
Realtor.com says in their January Rental Report that 44 out of the 50 largest metros are now either renter-friendly or balanced, leaving just six markets more landlord-friendly.
As vacancy rates rise, costs are adjusting downward. January marked the 29th consecutive month of year-over-year rent declines, with the national median asking rent dipping 1.5% year-over-year to $1,672.
“After years of being squeezed by limited inventory, renters are finally seeing the supply wave work in their favor,” said Danielle Hale, chief economist at Realtor.com. “This shift doesn’t just mean lower prices; it means that renters today have more options and more bargaining power. While the market isn’t uniform everywhere, the broader trend is a move toward a much-needed equilibrium that allows for more flexibility and choice in the housing search.”
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Key findings in the renter-friendly study:
- Renter advantage: The surge in availability has pushed the national vacancy rate to a high, up from 7.2% in 2024.
- The Milwaukee flip: Milwaukee recorded the most dramatic shift in the country, with vacancy more than doubling (from 4.9% to 10.8%) in just one year.
- Regional exceptions: While the supply wave is helping renters nationally, coastal hubs such as New York and Boston remain supply-constrained with vacancy rates stuck below 5%.
- Price softening: National asking rents fell for the 29th consecutive month, dipping 1.5% year-over-year to $1,672.
“We are seeing a fascinating tug-of-war,” said Jiayi Xu, economist at Realtor.com. “In the Sun Belt and parts of the Midwest, new construction is helping to create negotiating room for renters. But in traditionally more affordable areas like Richmond and Pittsburgh, the secret is out, rising demand from out-of-towners is starting to soak up that excess vacancy, proving that renter-friendliness can be fleeting if supply doesn’t keep pace with demand.”
Source: Rental Housing Journal
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