By Naveen Athrappully

Home rents across the United States edged down in November, in line with a slowdown usually seen during winter, real estate marketplace Zillow said in a report on Dec. 18.

The typical U.S. asking rent declined 0.3 percent from October to $1,925 in November, mirroring patterns seen in recent years, the report said, adding that cooler weather and fewer home transitions are easing pressure on rental prices.

“Over the past year, the rental market has moved firmly in favor of renters. New supply and lower churn have contributed to a calmer pace of rent changes across many metros. Rent growth is now somewhat lower than before the pandemic,” Zillow said.

“Before the pandemic, annual rent growth for a single-family rental averaged roughly 4.3 percent, while annual rent growth for a multifamily rental was roughly 3.6 percent. Over the past year, rent growth was just 3 percent and 1.5 percent for single-family and multifamily rentals, respectively.”

Among the 50 largest metros, rents fell month over month in 43. The largest dip was seen in Denver, followed by Washington, Austin, Salt Lake City, and Nashville, according to the report.

Zillow highlighted that incentives from rental landlords have now become “increasingly common” amid elevated vacancy rates.

Almost two out of every five rental listings now offer concessions, underscoring that renters have negotiating power in the current market, the report said.

“The share of rentals with a concession is the highest for any November since Zillow began tracking this metric,” the report states.

Zillow expects rent growth to remain muted through winter and to ease further next year.

In a Dec. 16 statement, home listings company Realtor noted that the median asking rent across the 50 largest metropolitan areas in the United States declined year over year for the 28th straight month in November.

The cooling rent, combined with increases in local and state minimum wages, is starting to create a limited but “notable” improvement in rental affordability among the lowest wage earners in the country, it said.

“While the challenge remains immense, particularly in high-cost areas, the number of metros where two minimum wage earners can afford a typical rental without working overtime will grow in 2026, a positive sign,” said Danielle Hale, chief economist at Realtor.

“In other markets, especially in states with scheduled minimum wage hikes, the amount of overtime hours needed to afford a rental will decline, potentially freeing that income for other budget priorities.”

During a prime-time address from the White House on Dec. 17, President Donald Trump highlighted the administration’s prioritization of reducing the cost of living for Americans, including rent.

According to Trump, some relief in housing and rent prices is coming since the deportation of illegal immigrants has reduced the number of people who compete to acquire properties.

In a Dec. 19 statement, the Department of Homeland Security said that more than 2.5 million illegal immigrants have exited the United States in the first year of the Trump administration.

Their exit could lower housing demand, eventually bringing rental prices down further.

Meanwhile, the home purchase market is also slowing down. Real estate brokerage Redfin said in a Dec. 18 statement that home hunters are hesitating to buy a home this holiday season because mortgage rates remain “stubbornly” above 6 percent amid elevated home prices, creating affordability barriers.

According to Freddie Mac data, the 30-year fixed-rate mortgage has remained above 6 percent for every week since September 2022.

“Slow homebuying demand is pushing would-be sellers to the sidelines, too. New listings are down 3.1 percent year over year, the biggest decline in more than two years. The total number of homes for sale is up just 4.2 percent, the smallest increase since the start of 2024,” it said.

“Many prospective sellers are reluctant to list their home while the market is tilting toward buyers, with some waiting until the new year to see if demand improves.”