The national rental market continued to shift in the third quarter of 2026, with less construction allowing room for demand to catch up. While the national vacancy rate is at its lowest point since late 2023, a rising concession rate means that renters are finding more deals despite less availability.
Whether you’re considering a move or bracing for lease renewal, understanding where rents are rising and falling and how trends will impact your search can help you make more informed decisions in the evolving rental landscape.
Where Rents Are Rising
The Upper Midwest
Rents in the Upper Midwest region—Michigan, Minnesota, Wisconsin, Iowa, North Dakota, and South Dakota—have been rising consistently over the past few years. According to CoStar Group’s Multifamily Rent Growth Report for September 2026, rents in the entire Midwest region are, on average, 2.3% higher than last year.
Elliott Krivenko, CoStar Group’s senior director of market analytics covering the Upper Midwest region, says rent increases can be attributed to increased leasing activity that’s rebalancing the scales.
“What many of these markets do share is relatively affordable housing and construction pipelines that are either limited or receding, giving absorption a chance to catch up with the recent waves of supply,” says Krivenko.
Detroit, Milwaukee, and Des Moines are slowly absorbing supply waves from 2023 and 2024, causing rents to increase by 1.6%, 2.7%, and 1.7% year-over-year, respectively, as availability decreases. Minneapolis (+1.1%), St. Paul, MN (+1.6%), Grand Rapids, MI (+2.3%), and Grand Forks, ND (+3.2%) are all experiencing thin construction, allowing demand to outweigh supply.
"What many of these markets do share is relatively affordable housing and construction pipelines that are either limited or receding, giving absorption a chance to catch up with the recent waves of supply."
Elliott Krivenko, Senior Director of Market Analytics for the Upper Midwest, CoStar Group
Adrian Brizuela, CoStar Group’s associate director of market analytics covering Milwaukee, says the scales are tipping in favor of property managers in Milwaukee as demand continues to outpace supply.
“Part of Milwaukee’s strength is that the market entered this construction cycle from a much tighter starting point than many peer metros,” says Brizuela. “Recent deliveries have largely been absorbed, especially in higher-end [communities], while affordability relative to markets like Chicago and Madison continues to support renter demand. As a result, vacancy has been falling even as development remains active.”
Providence, RI
Cities in the Greater Providence area are seeing steep rent inclines as vacancy rates remain low despite new supply. Providence’s vacancy rate is currently 4.5%, down 0.2 percentage points from this time last year and 3.3 percentage points below the national vacancy rate.
The vacancy rate in Providence is rising, but so are rents; new supply over the past year has been concentrated among luxury units that enter the market at higher prices, and the city’s population keeps growing at a steady rate. Between higher-priced units and chronic undersupply, Rhode Island renters are seeing prices average 2.4% higher than last year.
Lake Charles, LA
In Lake Charles, LA, the multifamily rental market has completely flipped. In 2024, construction wrapped up on about 600 new units, sending the vacancy rate skyrocketing to 16.5%. However, demand spiked as well; about 800 units were leased in 2025, bringing the vacancy rate back down. The vacancy rate is now 7.4%, just below the national rate of 7.8%.
"Large-scale manufacturing, chemical, and LNG-related projects in the region have brought both new permanent jobs and a steady pipeline of construction workers, increasing housing demand in a relatively small market."
Cody Gibbs, Director of Market Analytics for Louisiana, CoStar Group
Cody Gibbs, CoStar Group's director of market analytics covering Louisiana, says increased demand is largely tied to the growing energy industry, particularly in liquefied natural gas (LNG).
"Large-scale manufacturing, chemical, and LNG-related projects in the region have brought both new permanent jobs and a steady pipeline of construction workers, increasing housing demand in a relatively small market," says Gibbs.
Lake Charles’ rental market is relatively small—the multifamily inventory is only around 9,000 units—so fluctuations that would be considered minor in a larger market can make major waves here.
Where Rents Are Dropping
Las Vegas
Las Vegas is experiencing a major supply wave that started in 2022. Because new units are now entering an already oversupplied market, property managers in these new apartment communities are pressured to offer deep concessions.
At the same time, renters are choosing to take advantage of these concessions and lease newer, higher-end units, causing increased vacancies in existing apartment communities. The market is now playing a game of tug-of-war as numerous properties compete for limited renters. The current average rent of $1,251 per month is 1.8% lower than last year.
Salt Lake City
Rents in Salt Lake City are 1.1% lower than last year, on average, reflecting the sustained impact of the city’s supply wave from 2023 to 2025. While new apartments are leasing up fast, especially high-end units, and the vacancy gap between luxury and mid-tier units is closing, it will take years for the market to fully rebalance. A citywide vacancy rate of 9.2% and a concession rate of 7.6% suggest that renters may find low prices here for a while despite high demand.
Southwest Florida
Rents continue their downward trend in Southwest Florida, especially in Fort Myers, where the average rent is down 3.3% from last year. However, the construction pipeline across the region has cooled, meaning that the market may get the chance to rebalance. It will take a while for Southwest Florida to fully absorb such extreme oversupply, but renters may notice prices beginning to stagnate and rent concessions becoming less deep over the next year.
Where Renters Are Searching
Most searched cities
The five cities with the biggest quarter-over-quarter search increases were:
- San Antonio, TX (+116.2%)
- Las Vegas, NV (+82.0%)
- Phoenix, AZ (+50.1)
- Seattle, WA (+35.1%)
- Portland, OR (+33.8%)
Searches for San Antonio more than doubled between the second and third quarters of 2026. At the same time, the metro area surpassed its 2026 economic development goals after announcing over 7,000 expected jobs. The anticipated job growth includes IEM’s new manufacturing plant, expansion of the Toyota manufacturing plant, and Blackwave’s first U.S. factory.
The five most-searched cities in the third quarter of 2026 were:
- New York, NY (+0.3%)
- Los Angeles, CA (+0.1%)
- Chicago, IL (-24.8%)
- Philadelphia, PA (+1.2%)
- Boston, MA (-9.4%)
Philadelphia replaced Dallas in the top five most-searched cities this quarter. This comes amid five major business developments supported through the city’s PHL PRIME program, including the relocation of Burlington Stores’ headquarters to University City.
Least searched cities
The five cities with the biggest quarter-over-quarter search decreases were:
- Chicago, IL (-24.8%)
- Denver, CO (-19.1%)
- Madison, WI (-11.6%)
- Tallahassee, FL (-11.5%)
- West Plam Beach, FL (-11.1%)
Despite being the third most-searched city in the third quarter of 2026, Chicago saw the biggest quarter-over-quarter drop in search volume. This steep drop comes after Chicago posted increasing search volume in the first and second quarters of 2026.
The second half of the year tends to bring minimal rental activity, but the off season seems to be hitting Chicago extra hard this year; search volume in the third quarter of 2026 was also 17.3% lower than the same time last year.
The five least-searched cities in the third quarter of 2026 were:
- Tallahassee, FL (-11.5%)
- Santa Barbara, CA (-4.2%)
- Fargo, ND (-11.1%)
- Greenville, NC (-0.7%)
- Wichita, KS (-4.8%)
Tallahassee's rental market is oversupplied, with hundreds of new units entering the market each year despite consistently low demand. The vacancy rate began skyrocketing in 2022, now sitting at 10.7%. However, rents remain relatively stable, and the concession rate is only 2.4%.
How Market Trends Impact Renters
Rent burden
New York remains the most unaffordable city for renters, with rent-to-income ratios in Brooklyn (52.6%), Queens (61.2%), and Manhattan (71.1%) all nearly double the recommended 30%.
New York is closely followed by Miami (51.3%), Boston (50.8%), and Jersey City (45.1%) in unaffordability. On the flip side, Colorado Springs (20.8%), Austin (20.8%), and Raleigh (21.9%) are the most affordable markets relative to median household income.
|
City |
Median Household Income |
Current Average One-Bedroom Rent |
Rent-to-Income Ratio |
|
$85,449 |
$1,667 |
23.4% |
|
|
$130,144 |
$2,409 |
22.2% |
|
|
$77,337 |
$1,646 |
25.5% |
|
|
$81,906 |
$1,417 |
20.8% |
|
|
$84,197 |
$3,567 |
50.8% |
|
|
$71,116 |
$1,677 |
28.3% |
|
|
$71,116 |
$3,123 |
52.7% |
|
|
$80,020 |
$1,921 |
28.8% |
|
|
$72,329 |
$1,471 |
24.4% |
|
|
$69,230 |
$2,057 |
35.7% |
|
|
$48,227 |
$1,152 |
28.7% |
|
|
$76,200 |
$1,318 |
20.8% |
|
|
$60,250 |
$1,179 |
23.5% |
|
|
$58,908 |
$1,408 |
28.7% |
|
|
$85,001 |
$1,620 |
22.9% |
|
|
$78,954 |
$2,254 |
34.3% |
|
|
$68,568 |
$1,269 |
22.2% |
|
|
$154,993 |
$3,914 |
30.3% |
|
|
$82,847 |
$1,747 |
25.3% |
|
|
$56,401 |
$1,176 |
25.0% |
|
|
$59,562 |
$1,126 |
22.7% |
|
|
$121,839 |
$3,061 |
30.1% |
|
|
$60,187 |
$1,306 |
26.0% |
|
|
$88,358 |
$3,321 |
45.1% |
|
|
$64,541 |
$1,257 |
23.4% |
|
|
$61,425 |
$1,251 |
24.4% |
|
|
$74,211 |
$1,895 |
30.6% |
|
|
$74,048 |
$2,197 |
35.6% |
|
|
$70,080 |
$1,508 |
25.8% |
|
|
$71,116 |
$4,216 |
71.1% |
|
|
$52,516 |
$2,246 |
51.3% |
|
|
$47,042 |
$1,229 |
31.4% |
|
|
$71,217 |
$1,406 |
23.7% |
|
|
$67,531 |
$1,680 |
29.9% |
|
|
$71,116 |
$4,216 |
71.1% |
|
|
$59,951 |
$1,580 |
31.6% |
|
|
$54,633 |
$1,774 |
39.0% |
|
|
$70,283 |
$1,303 |
22.2% |
|
|
$57,869 |
$1,440 |
29.9% |
|
|
$83,502 |
$1,530 |
22.0% |
|
|
$71,116 |
$3,628 |
61.2% |
|
|
$75,944 |
$1,383 |
21.9% |
|
|
$53,556 |
$1,434 |
32.1% |
|
|
$77,825 |
$1,581 |
24.4% |
|
|
$50,989 |
$1,155 |
27.2% |
|
|
$56,185 |
$1,058 |
22.6% |
|
|
$95,644 |
$2,440 |
30.6% |
|
|
$128,655 |
$3,644 |
34.0% |
|
|
$130,163 |
$2,871 |
26.5% |
|
|
$114,915 |
$2,120 |
22.1% |
|
|
$65,588 |
$1,650 |
30.2% |
|
|
$95,873 |
$2,307 |
28.9% |
National median household income data is based on CoStar Group’s National Market Report, and median household income is sourced from Apartments.com Area Guides. Median household income data is based on total metro area data, not renter-specific data. The average rent data is from Apartments.com Rent Trends pages.
Concession frequency
The national concession rate—the difference between advertised and actual rent paid after rent specials are applied—is up to 4.2%, 0.6 percentage points higher than last year. This reflects quiet renter activity after a relatively flat summer moving season. While the vacancy rate is down to 7.8%, 0.5 percentage points lower than last year, renters are paying an average of 4.2% less than the advertised rent once rent specials are calculated.
Here are the five cities where renters are finding the deepest concessions:
- Naples, FL (12.9% concession rate)
- Fort Myers, FL (11.5% concession rate)
- Sarasota, FL (10.5% concession rate)
- Austin, TX (9.9% concession rate)
- Savannah, GA (9.6% concession rate)
Southwest Florida remains the best place for bargain hunters, with concession rates over 10%. On average, renters in Naples are paying 12.9% less than the advertised price. For an apartment listed at Naples’ average one-bedroom rent of $1,867 per month, the average rent special would reduce a renter’s effective rent payment to $1,626 per month.
While it barely missed the top five list, Charlotte, NC, deserves an honorable mention. The concession rate in Charlotte is currently 9.1% and has increased by 3 percentage points over the last year. Construction in Charlotte has been booming, and rents have been gradually declining as vacancies spike with the completion of new apartment communities. The increased supply has pressured property managers to offer deeper concessions as new supply outpaces leasing activity. For an apartment listed at Charlotte’s average one-bedroom rent of $1,471 per month, the average rent concession would reduce a renter’s monthly rent to $1,337 per month.
What We’re Watching
Hollywood uncertainty after media merger
On Tuesday, Oct. 6, Paramount completed its acquisition of Warner Bros. Discovery. The two legacy studios are now combined under a media conglomerate named Skydance.
While Skydance agreed not to sell the Paramount and Warner Bros. studio lots for at least five years, questions are still circulating over how the merger will impact employees and operations. Skydance now faces the challenges of cutting costs and consolidating assets of two of the biggest entertainment companies, leaving much uncertainty among employees.
According to the U.S. Census Bureau’s 2024 American Community Survey, an estimated 1.9 million civilians in Los Angeles County—about 10% of the total labor force—work in the arts, entertainment, and recreation industry. With Warner Bros. and Paramount being two of the biggest entertainment companies in the area, changes to employment and operations after the merger will impact thousands of people across the Los Angeles metro area.
Proposed rental reform in Chicago
The Committee on Housing and Real Estate voted to advance Mayor Brandon Johnson’s Protecting Renters Ordinance (PRO) after a few tweaks, advancing to the City Council floor. At the same time, the Committee on Zoning, Landmarks and Building voted to advance a counter ordinance, the Fair and Accountable Illinois Rental Ordinance (FAIR), bringing both to the City Council.
City Council deferred floor votes on the two competing ordinances in hopes PRO’s and FAIR’s sponsors would find common ground.
Turning tides in Texas
For the past few years, Texas has been the poster child of oversupply. High vacancy rates, rapidly declining rents, and deep concessions have been the norm since the most recent supply wave began in 2022 and rentals across the state struggle to fill vacant units.
But the story is starting to change. In Austin, San Antonio, and the Dallas-Fort Worth area, leasing activity is ramping up and vacancy is dropping. In Houston, vacancies are beginning to stabilize. This means that rent decreases have begun to slow to a gradual decline instead of steep year-over-year drops, and the pendulum will eventually swing in favor of property managers, overturning the years-long renter’s markets.
However, it takes years for a market to fully shift, so renters can expect low rents and lots of rent specials for the foreseeable future. In the meantime, renters across the state are taking advantage of deep discounts to rent higher-end units, causing a widening gap between vacancies for luxury and mid-tier units.
Methodology
Rent data is provided by CoStar Group’s Market Trend reports. As the industry leader in commercial real estate information, analytics, and news, CoStar conducts extensive research to produce and maintain a comprehensive database of commercial real estate information. We combine this data with public record to provide the most up-to-date rental information available.
