Potential renters on the sidelines waiting for rents to go down may be in luck, as the average vacancy rates have reached a multi-year high in 44 of the 50 largest metros in the United States.
In its January 2026 rental report, released on Feb. 17, Realtor.com said that the average vacancy rate for apartments reached 7.6 percent in 2025—jumping from 7.2 percent in 2024. It also noted that January marked the 29th consecutive month of year-over-year rent declines, with the national median rent dropping by 1.5 percent to $1,672 for all apartment sizes.
“After years of being squeezed by limited inventory, renters are finally seeing the supply wave work in their favor,” Realtor.com chief economist Danielle Hale said in the report.
“This shift doesn’t just mean lower prices; it means that renters today have more options and more bargaining power.”
According to the report, Milwaukee saw the country’s most dramatic shift in vacancy rates, with the average rate increasing to 10.8 percent in 2025 from 4.9 percent in 2024.
Renters may also have the upper hand in 22 other metros where vacancy rates have jumped by more than 7 percent, with Birmingham, Alabama, topping those rates at 14.3 percent.
Additional renter-friendly metros include Austin, Texas, with a vacancy rate of 13.8 percent; Buffalo, New York, at 12.5 percent; Dallas–Fort Worth at 10.5 percent; Orlando at 9 percent; and Phoenix at 8.4 percent.
The report also identified 22 balanced markets with vacancy rates between 5 percent and 7 percent. Only six markets—Boston; New York City; Los Angeles; Providence, Rhode Island; and California’s Riverside and San Jose—were deemed “landlord-friendly” with rates lower than 5 percent. Boston recorded the lowest vacancy rate of all 50 metros at just 3.2 percent.
Nationally, the report found that studio apartments were leasing for an average of $1,393, one-bedrooms for $1,552, and two-bedrooms for $1,847.
Some markets that had been traditionally favorable to renters such as Richmond, Virginia, and Pittsburgh have become more competitive, reflecting a large influx of new renters driven by local job growth and migration from more expensive metros.
“We are seeing a fascinating tug-of-war,” Realtor.com economist Jiayi Xu said in the report.
“In the Sun Belt and parts of the Midwest, new construction is helping to create negotiating room for renters. But in traditionally more affordable areas like Richmond and Pittsburgh, the secret is out.”
Meanwhile, a same-day report from RentCafe states its top trending cities for 2026, with Cincinnati topping the list. Other desirable locations forecast for this year include Atlanta, Minneapolis, Washington, and Baltimore.
Renters searched and saved apartment listings in Cincinnati more than in any other area, boosting the city 10 positions higher than last year. RentCafe put the average rent of a studio apartment there at $1,098 per month and a one-bedroom apartment there at $1,267.
The report notes that much of the demand is from renters relocating to Cincinnati from high-cost coastal metros in search of a location with a growing job market, particularly in the health care, manufacturing, and finance industries. Most of the interest in the city came from Columbus, Ohio, with additional inquiries from Chicago and New York City.
Atlanta’s booming job market in technology and film is attracting renters from New York City and other Georgia locations, such as Marietta and Sandy Springs. Renters typically pay $1,471 per month for a studio and $1,594 for a one-bedroom.
Although Washington slid three spots from last year’s ranking, the metro is still considered a hot spot for renters associated with federal agencies, contractors, and embassies. The average rent in the nation’s capital remains higher than that of many other metros, at $1,862 for a studio and $2,331 for a one-bedroom.
Completing the top 10 list for 2026 trending cities are Cleveland; San Jose, California; Philadelphia; Birmingham, Alabama; and Kansas City, Missouri.
Regionally, the Midwest and South metros garnered the most attention, with 11 Midwest cities listed among the top 30 locations. Ten cities in the South were listed in the top 30, but only seven were located in the West and two in the Northeast.
