Monthly housing costs briefly dropped in early 2026, yet in certain urban areas where affordable jobs are prevalent, renters are experiencing rising expenses. This shift stems largely from an influx of renters moving from lower-cost cities, drawn in by attractively low rents. This migration inadvertently increases prices by reducing the availability of units, making it tougher for others to find affordable housing.
Research indicates that, nationwide, rents for one- to two-bedroom apartments saw a decline for the 29th straight month in January, with median rents dropping 1.5% compared to the previous year. In the 50 largest U.S. metropolitan areas, the median rent was $1,672, which is down $85 from its peak in August 2022.
Out of these markets, 22 were identified as favorable for renters, 22 were balanced, and only 6 favored landlords. Rental vacancy rates hovering between 5% and 7% suggest a market where supply meets demand. When vacancy rates dip below 5%, it’s often tougher for renters, while those above 7% tend to shift toward empowering tenants.
The Changing Market Landscape
Last year, several cities transitioned from being buyer-friendly to achieving a more balanced market. For instance, Richmond, Virginia saw its vacancy rate plummet from 8.2% in 2024 to 5.2% in 2025, leading to a median desired rent of $1,509 in January—a 1.9% increase from the previous year.
This city, located just outside Washington, D.C., features robust job sectors including healthcare and financial services, making it significantly more affordable than the capital itself, where the median asking rent reached $2,253—a slight increase from a year earlier, despite vacancy rates rising from 4.7% to 6.3%.
Richmond has become increasingly popular among university graduates seeking cost-effective living options along with promising career opportunities. Similarly, Pittsburgh has undergone a similar evolution, with vacancy rates dropping from 8.7% to 6.9%, thereby transitioning to a balanced market. However, rental prices in Pittsburgh have risen more slowly, with median rents increasing just 0.9% to $1,427 in January.
The city draws in students and young professionals looking for competitive wages and a vibrant lifestyle enriched by its rich arts scene and professional sports offerings.
Richmond recorded a high demand for off-market rentals, with a significant portion of potential renters coming from outside the area. In Pittsburgh, the figure stands at around 55% for outside demand.
According to Realtor.com economist Jiayi Xu, the stability of new multifamily housing supply is crucial for markets like Pittsburgh and Richmond to sustain long-term demand. Recent trends suggest the peak in multifamily permits may have passed, further tightening rental markets.
Other Markets Showing Change
Additionally, five other metropolitan areas transitioned last year from renter-friendly to balanced markets. In Columbus, Ohio, the vacancy rate decreased from 7.3% to 5.7%, with median asking rent slightly rising to $1,187. Over half of online traffic in Columbus consists of off-market renters, mainly from higher-priced cities like D.C.
Las Vegas also faced changes, experiencing a drop in its vacancy rate from 8.3% to 6.4%, although median rents fell by 2% to $1,429. Local real estate agent Tania Jayme noted that the demand remains high, but landlords are being more strategic with pricing, often offering concessions to fill vacancies.
The Las Vegas market stands out for having one of the highest shares of off-market traffic, primarily due to its appeal for those relocating for work or lifestyle changes. Many newcomers prefer to rent before deciding to buy, which helps absorb vacated units, particularly in newer developments.
Meanwhile, median rents in Louisville, Kentucky, dropped significantly, with vacancy rates falling from 7.2% to 6.7% and asking rents decreasing by 2.8% to $1,219. Atlanta also saw its asking rents decline by 1.6% to $1,544, but the reduction in vacancy rates—from 9.3% to 7%—means tenants find themselves with fewer options and less leverage.
In Indianapolis, the rental vacancy rate was recorded at 6.6%, down from 9.1% the previous year, while rents remained relatively stable.
