What's Happening?
Realtor.com's November Rental Report reveals a continued decline in rental prices across the 50 largest U.S. metropolitan areas, with the median asking rent for 0–2 bedroom units at $1,693 in November 2025.
This represents a 1.0% decrease from the previous year, marking the 28th consecutive month of declining rents. Despite this trend, rents remain 17.2% higher than in November 2019, highlighting ongoing affordability challenges. The report uses a standard affordability metric, assuming a two-earner household working full time at the local minimum wage, and finds that only five of the top 50 metropolitan areas are currently affordable without requiring overtime. The report also notes that rising minimum wages in some states may improve affordability for the lowest-paid workers.
Why It's Important?
The decline in rental prices offers some financial relief to renters, but the persistent affordability gap underscores a significant issue in the U.S. housing market. The report highlights that even with declining rents, the cost of housing remains a major hurdle for many, particularly in high-cost areas. The interplay between rental market conditions and income policy is crucial, as state-level minimum wage increases could potentially improve affordability. However, the report suggests that meaningful improvements will depend on ongoing wage growth and broader changes in housing cost dynamics. This situation affects economic stakeholders, including renters, policymakers, and the real estate market, as they navigate the challenges of housing affordability.
What's Next?
As the U.S. rental market continues to adjust, the number of metropolitan areas where two minimum wage earners can afford a typical rental without working overtime is expected to grow in 2026. In states with scheduled minimum wage hikes, the amount of overtime hours needed to afford a rental may decline, potentially freeing income for other budget priorities. However, in high-cost areas, even higher market-driven wages or state-mandated increases may not close the affordability gap. The report emphasizes the need for ongoing wage growth and changes in housing cost dynamics to achieve meaningful improvements in rental affordability.
