4 U.S. Cities Where Rents are Falling in 2025

For many across the United States, rent prices have been climbing. But new data shows that rents are actually going down in some major cities. This is important news for anyone looking for a place to live or watching the housing market.

This news piece looks at recent information from the Waller, Weeks, and Johnson Rental Index. We will highlight four U.S. cities where average rents have fallen over the last year. This trend offers a different view of today’s changing rental landscape.

Investment Properties: Browse U.S. Investment Properties in our Online Portal

Key Takeaways: Falling Rents in U.S. Cities (May 2025)

• Rents are Dropping in Some Cities: While many areas still see rising rents, a few major U.S. cities are seeing prices fall.

• Texas and Colorado on the List: Cities in Texas and Colorado are among those where rents are decreasing.

• What This Means: Falling rents can be good news for renters. For property owners, it might mean changes in rental income.

The Current Picture of U.S. Rents

The Waller, Weeks, and Johnson Rental Index closely follows rent changes in 100 big U.S. cities each month. The latest report, from April 2025, shows that overall U.S. rents are still rising slightly. The national average rent went up by about 3.40% over the past year.

However, this national number doesn’t tell the whole story. Local markets can act very differently. Some cities are now seeing rents move in the opposite direction. They are seeing rents fall.

Related: Falling House Prices in the United States – Everything You Need to Know

4 U.S. Cities Where Rents Are Falling (May 2025)

Here are four U.S. metro areas where average rents have decreased year-over-year, based on the Waller, Weeks, and Johnson Rental Index for April 2025. The cities are listed by how much their rents have fallen, from the biggest drop to the smallest.

(Source: Waller, Weeks, and Johnson Rental Index, data as of May 2025)

Why Rents Might Be Falling Here:

• More Homes Available: In some cities, many new apartments or homes have been built. This means there are more places to rent than people looking for them. More choices for renters can lead to lower prices.

• Slowing Demand: Fewer people might be moving to these cities. Or, more people might be choosing to buy homes instead of renting. This also makes demand for rentals go down.

• High Prices Before: Some of these cities saw very fast rent increases in past years. Now, the market might be cooling down as prices adjust to what people can actually afford.

• Local Economy: Changes in local jobs or industries can also affect how many people want to rent and how much they can pay.

Related: U.S. House Price Forecast 2025 to 2030

What Falling Rents Mean for You

Falling rents can affect different groups in different ways:

• For Renters: This is good news! It means you might find better deals when looking for a new place. Your rent might also stay more stable, or even go down, when your lease is up for renewal.

• For Property Owners: If you own a rental property in these cities, you might see your rental income go down. It could also take longer to find new tenants. Owners might need to lower rents to keep their properties full.

• For the Housing Market: Falling rents can sometimes signal a shift. It might mean the market is becoming more balanced. Or it could mean a slower period for property values in these areas.

Understanding these local changes is important. It helps everyone make smart plans about where to live or where to invest.

Related: The Best U.S. Real Estate Markets for First Time Investors

Conclusion: A Diverse U.S. Rental Market

The U.S. rental market is complex. While rents are climbing in many places, some cities are seeing them fall. Austin, Cape Coral, Denver, and San Antonio are examples of this trend in April 2025.

These local changes show that it’s important to look beyond national trends. Whether you are a renter or a property owner, staying informed about your local market helps you navigate changes and make the best decisions.

Previous Article: Top 10 U.S. Cities Where Rents are Growing Fastest

Frequently Asked Questions (FAQs) on U.S. Cities with Falling Rents

Here are common questions about falling rent prices in U.S. cities.

Q: Are rents falling everywhere in the U.S.?

A: No. While some cities are seeing rents fall, the national average rent is still increasing. Rent changes depend a lot on the specific local market.

Q: Which cities are seeing rents fall in 2025?

A: Based on April 2025 data, Austin, TX; Cape Coral, FL; Denver, CO; and San Antonio, TX, are among the cities where rents have been falling year-over-year.

Q: Why would rents fall in some cities?

A: Rents can fall when there are more homes available than people looking to rent them. This can happen if many new homes are built, or if fewer people are moving to the city, or if buying a home becomes more affordable.

Q: What does “Year-over-Year (YOY) Rent Change” mean?

A: Year-over-Year (YOY) rent change shows how much the average rent in a city has gone up or down compared to the same month one year ago. A negative percentage means rents have fallen.

Q: Is it a good time for renters in cities where rents are falling?

A: Yes, it can be good for renters. Falling rents might mean more choices and better deals on rental homes. It could also mean more stable rents when a lease is renewed.

Q: What does this mean for people who own rental properties in these cities?

A: For property owners, falling rents might mean they have to lower their rental prices to find tenants. It could also lead to lower rental income from their properties.

Q: How can I find up-to-date rent data for my city?

A: You can often find local rent data on real estate websites like Zillow or Redfin. Also, reports like the Waller, Weeks, and Johnson Rental Index provide monthly updates for many major U.S. cities.