In today’s real estate landscape, where rising mortgage rates and soaring home prices have made homeownership increasingly unattainable, a surprising trend is emerging: in 19 U.S. cities, rents for single-family homes have actually declined. According to a new analysis by Business Insider, based on data from Rentometer covering 757 real estate markets, these declines offer a rare silver lining in an otherwise challenging housing environment.
A Rare Opportunity for Renters
While many renters across the country continue to face price hikes, the 19 cities identified in the study are defying national trends by offering noticeable rent reductions.
Here are some of the key highlights:
-
Newport, Rhode Island leads the pack, with rent prices falling by 16% compared to last year.
-
Anderson, Indiana follows closely, with a 12% decline.
-
Other notable cities with rent drops include Long Beach, New York, Bozeman, Montana, and San Marcos, Texas.
This decline contrasts sharply with broader national patterns. Across most of the U.S., rents have continued climbing—especially in the Midwest and Northeast, where single-family rental prices rose over 9% compared to the previous year. Meanwhile, the Southeast and Southwest regions experienced slower increases of 3.6% and 2.2%, respectively.
For renters struggling to find affordable housing, these markets present a potential opportunity to secure more reasonable lease terms.
Why Rents Are Dropping in Some Cities
Several factors are contributing to rent declines in these select cities:
-
Local Economic Shifts: Some of these areas have experienced job losses or slowed economic growth, reducing overall demand for rental housing.
-
Increased Supply: New construction, particularly of multi-family units, has outpaced demand in a few markets, giving renters more options and driving prices down.
-
Outmigration Trends: Post-pandemic migration patterns are still playing out. Cities that saw temporary population booms during 2020–2021 may now be seeing people leave, easing rental pressures.
It’s important to remember that these declines are localized. Nationwide, the rental market remains under pressure from broader economic and demographic trends.
The Bigger Picture: Housing Affordability Remains a Crisis
Even with these pockets of rent relief, affordability is still a major problem across the U.S.
Key points from the broader housing market report:
-
Mortgage rates have remained elevated, with the 30-year fixed rate hovering around 6.45% as of March 2025.
-
Housing inventory is historically low. The U.S. is short an estimated 4.5 million homes, pushing prices even higher.
-
Rent burdens are severe: nearly 50% of renters are spending more than 30% of their income on housing—an important threshold used to define housing cost burden.
-
Racial disparities persist, with over half of Black and Hispanic renters facing rent burdens compared to a lower percentage among white renters.
In short, while renters in some markets are catching a break, most Americans are still feeling squeezed, whether they rent or aspire to buy.
What This Means for Renters and Homebuyers
If you’re a renter, keeping an eye on these 19 markets could present a chance to negotiate better deals or even relocate to a more affordable area. However, for many, the decision to move is complicated by work, family, and lifestyle factors.
For potential homebuyers, the challenges remain steep. High mortgage rates and low supply continue to make buying a home difficult and expensive. Until broader systemic issues—such as increasing housing supply and addressing affordability barriers—are solved, both renters and buyers alike will have to navigate a tricky market.
Final Thoughts
The 19 cities where rent is falling offer a small but encouraging counterpoint to the dominant story of rising costs. They serve as a reminder that real estate is highly local, and that opportunities do exist—even in a tough environment.
Still, the overall housing landscape remains challenging. Policymakers, developers, and communities will need to work together to create long-term solutions to the affordability crisis that affects millions of Americans today.
For more details, you can view the full article here: Business Insider – 19 Cities Where Rent Is Falling Fast Despite Stubborn Price Hikes