As the spring leasing season approaches, the U.S. rental market is showing tentative signs of seasonal activity, though conditions remain soft, according to Apartment List data. While demand is beginning to pick up, year-over-year rent growth has hit a record low and both vacancies and the time it takes to lease units remain near peak levels.
The wave of construction that has shaped the market in recent years is starting to taper. In 2025, fewer than 500,000 new units were added, down from more than 600,000 in 2024, and this slower pace is expected to continue through 2026. Even so, supply growth remains slightly above the long-run average, keeping competition for renters elevated.
Nationally, median rents increased 0.4% in March, the second consecutive month of gains following six months of declines, reaching $1,363. While this signals the early onset of the summer leasing season, rents remain 1.7% below year-ago levels — the lowest annual change on record in Apartment List data dating back to 2017. Despite this pullback, current rents are still roughly 19% higher than at the start of 2021, Apartment List said.
The influx of new units has also contributed to higher vacancies. Apartment List's national vacancy index now stands at 7.3%, the highest since tracking began in 2017. Meanwhile, units are taking longer to lease. Units listed in March sat vacant an average of 38 days, slightly below February's 40 days but still well above the mid-2021 pace when units turned over in less than half that time.
Rent trends vary widely across the country. Of the 56 U.S. metros with populations over one million, 36 saw rents decline year-over-year, with the steepest drops concentrated in the South and Mountain West. Austin led the nation, with median rents falling 6% over the past year and more than 20% since its 2022 peak. High levels of new construction in Austin and other Sun Belt metros such as San Antonio, Denver, Phoenix, Tampa and Orlando have contributed to these declines.
At the other end, Virginia Beach recorded the fastest rent growth with prices up 5.5% year-over-year, followed by Bay Area metros San Francisco and San Jose, where the AI-driven tech boom has fueled demand for high-paying rentals. Several Midwest markets, including Chicago, St. Louis and Minneapolis, also maintained steady gains, supported by relative affordability amid soft national conditions.
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