Whether rents are going down depends on the market, property type and comparison period. A national annual increase can coexist with a monthly decline in a particular city, and advertised rents can rise while concessions make some leases less expensive.
This article was first published on 26 November 2024. The market figures below refer to September 2026, from Zillow’s report published on 15 October 2026. They provide context for property management decisions, not a recommended rent for an individual property.
What the September 2026 report shows
Zillow reported a typical U.S. asking rent of $1,932, up 2.7% from a year earlier. Its single-family measure was $2,266, up 3.1% annually; its multifamily measure was $1,762, up 2.2%. Those are distinct measures and should not be substituted for one another. Zillow’s September 2026 rental report describes the underlying market observations.
The same report shows why the national direction is insufficient for local pricing. Multifamily rents fell month over month in 23 of the 50 largest metros, even though the national annual measure increased. It also reported concessions on 39.6% of rental listings on Zillow. A concession can change the economics of a competing offer without changing its headline monthly rent.
These figures do not establish the rent your existing residents pay, the rent collected across your portfolio or the price at which a particular vacant home will lease. They describe asking-rent and listing measures for the stated period.
Compare like with like
When an owner forwards a headline about rising or falling rents, answer four questions before changing a recommendation:
| Question | Why it changes the interpretation |
|---|---|
| Is the measure asking rent, signed rent or collected rent? | An advertised offer is different from an executed agreement or actual receipts |
| Is the comparison monthly or annual? | A seasonal monthly movement may coexist with annual growth |
| Which geography and property type are covered? | A metro apartment series may be a weak comparison for a detached home in a specific neighborhood |
| Are concessions included? | Free rent or a credit can lower the effective cost while the advertised rent stays unchanged |
Build a local comparison set using properties that a prospective resident could reasonably choose instead. Note location, size, condition, parking, pet policy, required charges, availability date and concessions. Record the source and observation date so the team can tell when the evidence needs refreshing.
Where you know the signed outcome, distinguish it from the last advertised price. Do not treat a listing that disappeared as proof that it leased at the asking rent.
Put vacancy and concessions into the owner conversation
Use a consistent horizon to compare alternatives. In this illustrative example, a property can lease now for $1,900 a month, or remain vacant for one month while seeking $2,000. Over the next 12 months, the first option produces $22,800 of scheduled rent. The second produces $22,000 if it then leases for the remaining 11 months.
That $800 difference excludes turnover costs, collections, repairs and any later vacancy. It is not a forecast that reducing rent will produce an immediate lease. It makes the tradeoff visible so the owner can weigh an uncertain higher price against the cost of waiting.
Concessions need the same clarity. One free month on a 12-month lease advertised at $2,000 produces $22,000 of scheduled rent, equivalent to approximately $1,833.33 per month across that term. An offer at $1,900 with no concession produces $22,800. Compare the actual terms and approval requirements rather than assuming the higher advertised rent produces the better outcome.
Decide whether the problem is price or leasing execution
A weak response may reflect an uncompetitive price, poor photos, an inaccurate availability date or a showing process that is difficult to use. Inspect the funnel before choosing an intervention.
- If listing views are low, review distribution and presentation.
- If enquiries arrive but tours do not happen, inspect response quality, scheduling and the information prospects receive.
- If tours happen but applications remain scarce, ask what prospects found different from the listing and review the competing offers.
Our guide to generating rental enquiries explains those handoffs.
For occupied properties, pair local market evidence with the actual resident relationship and the cost of turnover. A national increase alone does not justify a renewal recommendation. Review service issues and the resident’s stated concerns using a consistent process; our tenant-retention guide provides a practical starting point.
Give owners a recommendation they can assess
An owner update should state the observation date, relevant comparables, current enquiry and showing activity, proposed action and the next review point. Explain uncertainty plainly. “The market is down” is less useful than identifying which competing homes are offering concessions and how your property’s response compares.
If market changes are exposing gaps in reporting, responsibilities or decision-making, BetterTeam Consulting can help strengthen the operating routines behind those recommendations.
