economy

January 29, 2026

Apartment rents just dropped to the lowest level in 4 years

Apartment rents are falling sharply due to weaker economic conditions and growing job losses.

Apartment rents just dropped to the lowest level in 4 years

TL;DR

  • National median rent dropped 1.4% year-over-year in January, the largest annual decrease since September 2023.
  • The national vacancy rate reached a record high of 7.3% in January.
  • Units are taking an average of 41 days to lease, an increase from the previous year.
  • Rents are 6.2% lower than their peak in the summer of 2022.
  • The surge in new apartment construction is peaking but still contributing to supply.
  • Weaker demand is attributed to a tighter job market and slower household formation.
  • Austin, Texas, has the softest rental market with a 6.3% year-over-year rent decline.
  • Virginia Beach, Virginia, leads rent growth at 5% annually.
  • The future of market conditions depends on rental demand, influenced by the labor market and economic uncertainty.

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