But the market is finally shifting.

After several years of rapid growth, rents across the United States are beginning to decline. While this offers relief to tenants, it means landlords—especially small investors—need to pay closer attention to their numbers.

Rents Are Dropping Nationwide

The national median rent fell to $1,353 in January 2026, the lowest January level in four years, according to Apartment List data reported by CNBC. That figure is 1.4% lower than a year ago and about 6.2% below the peak reached in the summer of 2022.

According to Realtor.com’s January 2026 Rental Report, asking rents for studios through two-bedroom units have now declined for 29 consecutive months in many markets.

For landlords, this shift means the days of automatic rent increases may be temporarily over.

Why Rents Are Falling

The biggest reason for the shift is a surge in new apartment construction.

According to the U.S. Department of Housing and Urban Development, more than 600,000 new multifamily units were completed in 2024 alone. Another 2 million rental units are expected to come online by 2028.

With so many new apartments entering the market, landlords are competing harder for tenants.

What this means:

• Longer time on market

• Multiple price reductions

• Increased concessions like free rent or parking

Rent Growth Has Slowed Dramatically

Multifamily rents increased only 0.1% between December and February, reaching an average of $1,716. Annual rent growth is now just 0.4%, down sharply from 1.5% a year ago.

In many markets, landlords are essentially competing in price wars just to fill units.

Rents Are Still High Overall

Even with recent declines, rents remain significantly higher than they were a few years ago.

In some markets—like Miami—rents have increased more than 50% over the past five years.

Not All Renters Are Seeing Relief

Interestingly, the rent declines are not evenly distributed across the market.

According to Realtor.com data reported by MarketWatch:

• Higher-income renters are seeing the biggest rent cuts.

• Lower-income renters have experienced smaller declines—or even continued increases since 2019.

In other words, the largest discounts are often happening in higher-priced apartment units, while more affordable rentals remain relatively tight.

What This Means for Small Landlords

Large institutional landlords often have the financial cushion to offer incentives and ride out slower markets.

Small landlords, however, have much less room for error.

Declining rents combined with rising operating costs are putting pressure on smaller investors. That makes careful underwriting and lease management more important than ever.

How to Protect Your Rental Income

For the moment, landlords can’t rely on automatic rent increases.

The investors in the best position are those who locked in low interest rates several years ago. Owners who purchased recently—or refinanced at higher rates—may feel more pressure if rents stall.

In a softer market, the fundamentals matter even more:

Protect your income

• Focus on retaining good tenants

• Offer incentives for lease renewals

• Minimize vacancy whenever possible

• Section 8 tenants can offer higher than average rental amounts

Control your expenses

• Keep costs down by negotiating rates with vendors

• Shop insurance policies regularly

• Appeal property taxes when appropriate

• Maintain systems to avoid major repairs

Eventually, as the market absorbs the new supply of apartments, rent growth will likely return.

Until then, landlords who manage carefully, watch expenses, and prioritize tenant retention will be in the strongest position.