The rental market slow season is here as the national median rent dipped by 0.8 percent in October, marking the third straight monthly decline, according to the November report from Apartment List.
“We’re now solidly into the rental market’s slow season, and it’s likely that rent prices nationally will continue to decline through the remainder of the year,” the Apartment List Research Team writes in the November report.
“This is in keeping with the typical seasonal pattern of rent growth, as fewer renters are generally looking to move as temperatures turn cooler and the holiday season approaches.”
Highlights of the national rents dip report
- The national median rent now stands at $1,381, down $13 per month compared to October 2024.
- Rent prices nationally are down 0.9% compared to one year ago. Year-over-year rent growth has been slightly negative for more than two full years, and the national median rent has now fallen from its 2022 peak by a total of 4.2%.
- Units are taking an average of 33 days to get leased after being listed.
- Although rents fell more in October than they did in September, this month’s decline was right in line with what we saw in October of last year, and as a result, year-over-year rent growth held steady at the -0.9 percent mentioned above.
Multifamily vacancy rate hits 7.2%, a new peak
The Apartment List national vacancy index – which measures the average vacancy rate of stabilized properties in the marketplace – ticked up to 7.2 percent in October. This represents an all-time high for this data series, going back to the start of 2017.
As the supply wave continues to recede, these occupancy and pricing trends should begin to gradually shift, but for now the market is still absorbing a swell of new units.
List-to-Lease time ticks up for fourth straight month
As more vacant units have come onto the market, those units have also been sitting vacant for somewhat longer.
In addition to that seasonal trend, units are also sitting a bit longer than they typically do at this time of year, a signal of market softness that’s also in line with rent growth and vacancy estimates.
Rent Prices Conclusion
“All of our key indicators are pointing toward ongoing sluggishness in the multifamily rental market – rent prices are down and the vacancy rate is at an all-time high. As construction slows further during the tail end of this year and into 2026, rent prices and occupancy should begin to stabilize, and a return to tighter market conditions remains on the horizon.
“That said, the supply boom still has a bit of runway remaining, and the demand outlook has begun to appear weaker amid a shaky labor market. These factors could lengthen the time that it takes for the market to metabolize the recent growth in the rental stock,” the Apartment List Research Team says in the report.
Read the full report here.
