Key Details:
- Realtor.com reports the U.S. median rent fell 2.2% year over year in August 2025, marking the 25th consecutive monthly decline to $1,713.
- Nearly 60% of renters plan to buy a home, with more than half expecting to purchase in 1–2 years.
- Median rents in Las Vegas, NV (-13.6%), Atlanta, GA (-13.6%) and Austin, TX (-13.4%) are seeing the steepest declines from their peaks.
Two years of rent declines are starting to reshape renter behavior, and many are now looking toward homeownership.
According to Realtor.com’s latest rental report, nearly 60% of renters plan to buy a home, with more than half of those expecting to make the move within the next one to two years.
Byron Lazine unpacked the numbers in Tuesday’s Hot Sheet:
Two Years of Rent Declines
August 2025 marked the 25th consecutive month of year-over-year rent declines, with the median asking rent falling to $1,713.
That figure is down 2.2% from the previous year, $46 below the August 2022 peak, and $5 lower than the prior month. It was the first monthly decline since March and a signal that the seasonal slowdown in rents has begun.
While today’s median is still $249 higher than the pre-pandemic level in 2019, rent growth has clearly cooled. Year-to-date, asking rents are up just 1%, compared with a 2.6% gain over the same period in 2024.
Renter Mobility Is Rebounding
Declining rents have had a measurable effect on mobility.
When rents were rising in 2021 and 2022, nearly 80% of renters stayed put, pushing mobility rates down to just 20.8%. That was below the 2017–2019 average of 23.7%.
As rents turned lower, mobility began to rebound. The rate climbed to 21.5% in 2023 and ticked slightly higher to 21.6% in 2024. More renters are once again willing to relocate in search of affordability, space, or new neighborhoods.
Realtor.com’s survey identified the top three reasons renters are searching for new homes:
- Wanting a larger space.
- Seeking a more affordable home.
- Exploring a new neighborhood vibe.
The Local Picture
National averages often mask what’s happening at the metro level.
In markets like Las Vegas, Atlanta, and Austin, rents are down more than 13% from their peaks.
These larger declines highlight where renters are finding the most opportunity and where agents may see shifting demand.
Optimism About Homeownership
Even with affordability challenges in the for-sale market, many renters remain confident they’ll become owners. Realtor.com found that nearly 60% of renters expect to buy, and among those, roughly 52% say they’ll make the purchase within one to two years.
Age plays a role in expectations. Only about one in five renters aged 18 to 24 believe they’ll buy within that timeframe, compared with nearly 30% of those aged 25 to 34.
The share rises to around 36% among renters between 35 and 64.
At the other end of the spectrum, 26% of renters 65 and older expect to buy, while 30% in that group report no plans to own at all.
Renters cite three main reasons they continue to rent:
- Insufficient savings for a down payment
- Limited affordable inventory
- Low credit scores
With the average age of first-time homebuyers reaching a record 38 in 2024, many households are waiting longer to make the jump.
Renters who are prioritizing affordability are also willing to make tradeoffs to lower their monthly costs, including:
- Lower on-site services
- Fewer amenities
- Longer commutes
Even with those hurdles, the data points to a renter population that sees ownership as part of their near future.
That optimism matters. If nearly 60% of renters are serious about buying, and more than half expect to do so within two years, that creates a pipeline of future demand for housing.
While affordability remains tight, falling rents and modestly improving mobility are reshaping consumer expectations. Understanding the local picture, especially in markets where rents have fallen furthest, will be critical to serving this next wave of first-time buyers.
