Falling Rents Spark New Moves Among U.S. Renters

Key Takeaways

• After more than two years of falling rents, many renters now see real opportunity to relocate, whether for affordability, more space, or a change of scene.
• Rent declines have been consistent across unit sizes (studios, 1-beds, 2-beds), helping fuel increased renter mobility in 2023 and 2024.
• Still, renting remains a stepping stone: ~60% of renters say they plan to buy a home, and over half of those expect to do so within one to two years.
• The biggest obstacles: accumulating a down payment, limited affordable inventory, and credit constraints.

Falling Rents Have Renters Ready to Move

More than two years of rent declines are prompting a shift among U.S. renters: many are now considering relocation to find more space, better affordability, or simply a new neighborhood.

In August, median asking rents dipped year over year for the 25th consecutive month. It was also the first month‑to‑month decline since March 2025, hinting at the typical seasonal slowdown heading into the fall. The median rent for 0–2 bedroom units in the 50 largest metro areas was $1,713, down $46 (‑2.6%) from the August 2022 peak, though still ~17% higher than before the pandemic.

Denver’s Rental Market Snapshot

Denver has experienced a notable shift in its rental market. According to the Apartment Association of Metro Denver, average rents in the metro area have decreased by 3.7% year-over-year, with the average rent dropping to $1,819 in early 2025. This marks the first year since at least 2006 that rents have fallen compared to the previous year, signaling a transition to a “renter’s market” in the region.

The decline in rents is attributed to several factors, including a significant increase in apartment vacancies. The apartment vacancy rate in Denver reached 7% in early 2025, the highest in 15 years, primarily due to the addition of approximately 20,000 new units in 2024. This oversupply has provided renters with more options and negotiating power.

Rent Trends by Unit Type

• Studio: $1,430 (‑1.7% YoY)
• 1‑Bedroom: $1,593 (‑2.1% YoY)
• 2‑Bedroom: $1,897 (‑2.2% YoY)

Each category has now seen well over two years of year‑on‑year rent declines.

Mobility Rises as Rent Pressures Ease

When rents were rising (2021–2022), about 80% of renters opted to stay put, leaving mobility at ~20.8%. Renewals were often cheaper than moving, deterring many from relocating. But now, with rents on the decline, mobility has nudged upward: Census data shows 21.5% in 2023 and 21.6% in 2024.

A survey from Realtor.com asked renters their reasons for searching new places. The top three:

1. Wanting a larger space
2. Looking for something more affordable
3. Exploring a new neighborhood vibe

In cities where rents have dropped sharply from their peaks — such as Las Vegas (‑13.6%), Atlanta (‑13.6%), and Austin (‑13.4%), renters may find even more opportunity.

Differences by Age Group

Younger and older renters place more emphasis on affordability, especially in tight financial circumstances.

Middle‑age renters often prioritize larger space, especially as families grow.

Across all groups, though, affordability remains one of the top motivations.

Many are willing to make compromises: fewer amenities, longer commutes, or reduced on-site services in exchange for lower rents.

Renters Still Hope to Buy

Despite the fluidity in the rental market, many renters view renting as temporary. Nearly 60% say they plan to buy a home. Among those, ~52% expect to do so within the next 1–2 years.

Yet barriers remain strong:

• Saving for a down payment
• Limited affordable homes on the market
• Credit constraints

Interestingly, the average age of first‑time homebuyers hit 38 in 2024.