An residence for lease signal hangs outdoors of an residence constructing on Dec. 4, 2025 in San Francisco, California.
Justin Sullivan | Getty Pictures
Condo rents continued their slide into the brand new yr, as contemporary provide nonetheless makes its manner by the market, and landlords attempt to achieve pricing energy over a struggling client.
The nationwide median lease in January was $1,353, a drop of 1.4% in contrast with one yr in the past, in accordance with Condo Checklist. That is now the fourth consecutive winter with a “pronounced” offseason dip, and is the biggest annual drop since September 2023 and the bottom January lease since 2022. Rents are actually 6.2% decrease than their final peak in the summertime of 2022.
The nationwide emptiness fee was 7.3% in January, a report excessive on Condo Checklist’s index, which dates to 2017. Items are additionally taking a median of 41 days to get leased, 4 days greater than in January 2025 and one other excessive for the index.
“Early final yr, it appeared that annual lease development was on monitor to flip optimistic for the primary time since mid-2023; nevertheless, that rebound stalled out and reversed course throughout a gradual summer season shifting season that has now dragged into the winter,” wrote Chris Salviati, chief economist at Condo Checklist.
The report provide of recent residence models has peaked, however there may be nonetheless a very good quantity coming by the pipeline. That’s developing towards weaker demand due to a tighter job market and slower family formation.
Trying domestically, a lot of the annual declines are within the South and Mountain West areas. Markets within the Northeast, Midwest and elements of the West Coast proceed to see rising rents regardless of the final winter slowdown.
Austin, Texas, wins the doubtful distinction of the softest rental market within the nation, with the median lease there down 6.3% from the yr earlier than. It’s adopted by New Orleans; San Antonio; Tucson, Arizona; and Denver.
Virginia Seashore, Virginia, is seeing the quickest lease development at 5%. It’s adopted by San Jose and San Francisco, California; Chicago; and Windfall, Rhode Island.
“The wave of development that has been driving these situations is waning, however whether or not or not market situations shift will now rely upon rental demand, whose outlook has grown shakier as a result of weak spot within the labor market and basic financial uncertainty,” Salviati wrote.
