Here's where U.S. rent is falling most in 2026 — and by how much

Rental costs are falling in several major U.S. cities as supply outruns demand. Zillow's latest report tracked rents across the 50 largest metros

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The cost of renting a home in America has become one of the defining financial concerns of the past several years. Since the pandemic, typical asking rents have climbed 36.2%, a cumulative shock that has reshaped household budgets and forced millions of renters to stretch further than at any prior point in recent memory. For many, the monthly rent check consumes a disproportionate share of income, crowding out savings, retirement contributions, and the kind of financial flexibility that makes other major decisions possible. That pressure has been real and widespread, and its effects linger even as the broader market begins to shift.

The shift, however, is now measurable. Incomes across the U.S. are growing faster than rents, a reversal that puts an average of $193 per month back in household budgets compared with a year ago. Nationally, the typical asking rent rose just 1.8% year over year to $1,910 in March — the slowest annual growth pace since 2020. The math is beginning to move in renters' favor, and in some cities, rents are not just growing slowly but actually falling outright. Those declines reflect a specific set of conditions: markets where apartment construction accelerated sharply during the pandemic, where population growth has leveled off, or where affordability constraints pushed demand below what available supply requires to remain stable.

Zillow's latest rent report measured asking rents across the 50 largest U.S. metro areas using the Zillow Observed Rent Index, which tracks the prices landlords are listing for available units. The report also captures monthly savings figures that factor in both rent changes and income growth, giving a fuller view of how affordability is evolving in each market. Ten metro areas posted year-over-year rent declines, and the cities where those drops are deepest offer renters conditions that stand apart from the national picture.

1. Austin draws the deepest rent decline of any major market

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Austin carries the steepest year-over-year rent decline among the 50 largest U.S. metro areas, with typical asking rents falling 2.3% to $1,579 — a drop that, combined with income growth, leaves the typical renter household $3,182 better off annually than a year ago. That $265 in monthly savings is the largest figure in the country, and it reflects conditions specific to the Austin market and not a broader Texas trend.

The city built aggressively during the pandemic era. Developers responded to a surge in population and demand by approving and constructing a large volume of new apartment units, and that supply has now reached the market at a moment when migration into Austin has slowed from its pandemic peak. The result is a market with more available units than renters currently need, which gives prospective tenants negotiating power they haven't held in years.

That power is visible in incentive data as well. Nearly 65% of rental listings in Austin carried a concession in March — free rent, waived fees, or similar add-ons — a figure that reflects landlord competition for a smaller pool of active renters. Falling asking rents and widespread incentives together mean the effective cost of renting in Austin has declined more sharply than the headline figure alone captures. A renter who secures a month of free rent on a $1,579 lease reduces the effective annual rate well below what the asking price alone suggests.

Affordability in Austin has improved to the point where the typical household spends just 18.1% of income on rent, making it the most affordable large rental market in the country. That stands in stark contrast to markets such as New York, where the equivalent share sits at 38%. For renters who relocated to Austin during the boom years and watched budgets strain under rising costs, the current trajectory represents a meaningful change in their day-to-day financial standing.

2. Tampa carries a concession surge alongside falling rents

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Tampa's asking rents fell 1.6% year over year to $1,988, placing the market among the top cities where renters are gaining ground, with typical households saving $3,110 annually — the second-largest annual savings figure in the country. Outright rent decline paired with income growth is significant for a metro that saw some of the most rapid rent appreciation during the pandemic era.

The share of Tampa rental listings offering a concession climbed 12 percentage points compared with a year earlier, the largest annual increase in that measure among all 50 metro areas tracked. In practical terms, roughly half of all available units in Tampa now include some form of incentive — a condition that reflects a meaningful shift in the balance between supply and demand. Landlords are actively competing for tenants, no longer simply receiving applications.

The rent figure itself — $1,988 for the typical unit — positions Tampa as a mid-tier market by cost, sitting below the national high-cost metros but above the most affordable Sun Belt cities. The current level represents a decline from the peak rents Tampa recorded during its period of fastest growth, when in-migration from higher-cost states drove demand well above what local supply could accommodate. That migration wave has moderated, and the construction pipeline it triggered has since filled the gap with units now entering a market that no longer absorbs them at........

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