What's Happening?
Realtor.com's December Rent Report reveals that while national rent declines have persisted for 29 months, the relief is primarily benefiting higher-priced rentals, leaving lower-cost renters with minimal relief. The median asking rent across the 50 largest
U.S. metros was $1,689, a 0.7% decrease from December 2024. However, lower-priced rentals have seen a 19.9% increase since 2019, compared to a 12.5% rise for higher-priced rentals. This disparity indicates that rent relief is concentrated at the top of the market, with lower-income renters facing continued affordability challenges. The report also notes that rent declines are flattening, with the smallest annual drop since March 2025.
Why It's Important?
The uneven distribution of rent relief underscores the ongoing affordability crisis in the U.S. rental market. While higher-income renters benefit from slower price growth and more concessions, lower-income renters continue to face significant financial pressure. This situation exacerbates the housing affordability gap, potentially leading to increased housing insecurity and displacement for low-income households. The report highlights the need for targeted policy interventions to address the affordability challenges faced by lower-income renters, ensuring equitable access to housing across different income levels.
