U.S. Median Rents Decline from 2022 Peak Amid Historic Multifamily Construction Boom

Washington, D.C. – Median rental prices across the United States are currently lower than their peak levels recorded in early 2022, a trend largely attributed to an unprecedented surge in multifamily housing construction. This development marks a significant shift in the rental market, offering some relief to renters after years of rapid price escalation. The observation was highlighted by Jordan Weissmann, who stated in a recent tweet, "I feel like the housing conversation hasn’t entirely internalized how median rents are currently lower than they were at the start of 2022, thanks to a multifamily construction boom."

Data indicates that national median rents for 0-2 bedroom properties are approximately $40 lower than their August 2022 peak of $1,720, representing a decline of about 3.5% from that high point. While rents remain significantly above pre-pandemic levels—around 21% higher than in January 2021—the aggressive growth seen in 2021 and 2022 has largely subsided. This moderation is a direct consequence of new supply entering the market.

The multifamily construction sector reached a 38-year high in 2024, with 608,000 new units completed, according to the National Association of Home Builders (NAHB). This substantial influx of new apartments, with 95% built for rent, has increased supply and led to higher national vacancy rates, reaching a record 7.1% by August 2025, as reported by ApartmentList. The increased availability has prompted some property managers to offer concessions to attract tenants.

The impact of this supply boom, however, varies regionally. Sun Belt cities such as Austin, Salt Lake City, and Jacksonville have experienced notable rent declines due to oversupply. For instance, Austin saw rents drop by over $200 in two years, with some reports describing its rental market as "collapsing" due to supply outweighing demand. Conversely, some Midwest and East Coast metros, including Cincinnati and Providence, continue to see rent increases as new construction has not kept pace with demand in those areas.

Looking ahead, while robust completions are expected to continue into 2025 with an estimated 533,000 units, a significant decline in new construction starts since 2022 suggests a potential slowdown in new supply by 2026. This anticipated reduction in future inventory could lead to renewed upward pressure on rental prices once the current surplus is absorbed. Despite the recent moderation, high home prices and elevated mortgage rates continue to steer potential homebuyers towards the rental market, maintaining underlying demand.

Overall, the current landscape reflects a more balanced rental market compared to the heated conditions of 2021-2022. The ongoing absorption of new multifamily units will be a key factor in determining rent trends in the coming years, with regional variations likely to persist based on local supply and demand dynamics.