The U.S. rental market continued its cooling trend in October, with apartment rents falling for the fourth consecutive month, according to Zumper’s national rent report. Historically high supply remains a key driver of the trend, though broader economic headwinds, including slowing job growth and declining consumer sentiment, are also prompting more conservative renter behavior.
The national median rent for a one-bedroom apartment fell 0.4% from September to $1,511, while two-bedroom rents declined 0.3% to $1,888. On an annual basis, one- and two-bedroom rents are down 1.5% and 1.2%, respectively.
In New York City, rents declined both month-over-month and year-over-year for the first time since spring 2021, led by falling prices in The Bronx and Brooklyn. Manhattan was the only borough to record an increase, with rents up 3.5% year-over-year. The city remains the nation’s most expensive rental market, with one-bedroom apartments averaging $4,400 in October. Two-bedroom rents fell 3.3% to $5,200.
San Francisco saw the steepest annual rent increase in the country, with two-bedroom prices surging 17.6% — the city’s largest gain in a decade. It remains the second-most-expensive market, with a one-bedroom median of $3,510. Boston ranked third at $2,900, followed by Jersey City, New Jersey, at $2,890 and San Jose, California, at $2,710.
Los Angeles, by contrast, recorded its fifth straight month of annual rent declines. Two-bedroom rents dropped 9.9% in October, while one-bedrooms fell 6.3% to $2,250, making it the eighth-most-expensive market nationwide. The city is also seeing a 93.7% annual increase in new apartment supply, with deliveries expected to peak by mid-2026, suggesting further rent declines ahead.
Other Southern California markets are also grappling with surging supply. San Diego and Anaheim are among the few U.S. cities where new deliveries are accelerating rather than moderating, with supply volumes projected to rise more than 70% over the next year. The impact is already visible in San Diego, where one-bedroom rents have dropped 6.3% year-over-year and two-bedrooms have contracted 4.8%, while Anaheim has seen one-bedroom rents fall 1.9% and two-bedrooms 3%. Analysts expect both markets to follow Los Angeles’ trajectory of sustained rent declines through 2026.
In the Washington, D.C., region, both D.C. and Arlington recorded annual rent declines across one- and two-bedroom units, a pullback Zumper attributed to local economic uncertainty tied to federal job cuts and the recent government shutdown. A one-bedroom apartment rents for $2,200 in D.C. and $2,350 in Arlington, ranking them 10th and seventh nationally.
For renters, the current environment presents a rare opportunity to negotiate favorable lease terms or upgrade to higher-quality units, Zumper said. For property owners, navigating the oversupplied market will require strategic pricing, creative concessions and patience as the market absorbs the influx of new inventory.
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