The US housing markets that are seeing the largest drops in rent prices

• Austin, Texas led all markets with an 18.2% decline in median asking rent from its pandemic peak and a 7.1% year-over-year decrease
• Birmingham, Alabama (-17.1%) and Memphis, Tennessee (-16.1%) ranked second and third for steepest declines from peak levels
• Despite the declines, median asking rent remains 14.2% higher than pre-pandemic levels, with all 50 largest metro areas still below their peak rent prices

Summary

U.S. renters experienced continued price relief in February 2025, with the national median asking rent reaching its lowest level in four years. According to Realtor.com analysis of the 50 largest metro areas, median asking rent for 0-2 bedroom properties fell to $1,667—down $29 or 1.7% year-over-year, marking the 30th consecutive month of decline.

Key Data Points:

• Median asking rent is down 5.1% from its summer 2022 peak
• Still 14.2% higher than pre-pandemic levels
• All 50 metro areas analyzed remain below their peak rental prices
• 15 markets experienced declines of at least 10% from pandemic peaks

Markets with Largest Declines from Peak:

1. Austin, Texas: -18.2% from peak, -7.1% year-over-year (largest decline)
2. Birmingham, Alabama: -17.1% from peak, -3.4% year-over-year
3. Memphis, Tennessee: -16.1% from peak, -3.8% year-over-year

Other significant declines were concentrated in Sun Belt markets, including Las Vegas (-15.6%), unnamed cities at -15.2% and -14.8%, and San Diego (-14.3%).

Markets with Smallest Declines:

• The most stable market saw only -1.7% decline from peak with 4.5% year-over-year increase
• Kansas City: -1.8% from peak, +1% year-over-year
• Baltimore: -2.4% from peak, +0.8% year-over-year

Market Implications:

The sustained 30-month decline suggests easing rental market pressures, particularly benefiting renters in previously overheated Sun Belt markets. However, prices remain significantly elevated compared to pre-pandemic levels, indicating structural changes in housing affordability persist.