Building Pace Impacting Median Rents as Multifamily Construction Boom Continues

In June, the median monthly rent requested across the 50 largest metro areas decreased to $1,692, representing a decline of 1.5%, or $25, compared to the previous year. This reduction signifies the 35th consecutive month of year-over-year decreases, as a prolonged boom in multifamily construction continues to exceed national demand, as reported in the Realtor.com June 2026 Rent Report. The metro areas that experience the most relief in the future may depend on the current trends in permitting and construction, which are showing significant variations across different markets.

The median asking monthly rent has now reached $72, representing a 4.1% drop from its 2022 high. Despite this, it is still $238, or 16.4%, above the levels seen before the pandemic. A typical seasonal rise is expected this summer, but due to the continued influx of new construction in many areas, Realtor.com® foresees that year-over-year decreases and rent relief will carry on through 2026.

“This didn’t happen by accident. Builders spent years playing catch-up after the pandemic rent spike, and that supply is why rents have fallen for nearly three years straight,” said Jiayi Xu, Economist at Realtor.com. “Now it comes down to geography: cities like Columbus, Ohio and Orlando are ramping up construction and are set up for more relief, while places like New York and Boston pulled back, which may raise concerns about the affordability path ahead.”

The location of the next relief will depend on the construction developments. In 2025, a total of 302,730 multifamily units received permits nationally, reflecting a 1.9% increase from 2024; however, this figure remains 13.1% lower than in 2019 and 34.4% below the peak observed in 2022. Both New York and Boston, which are currently facing significant rent control disputes, are experiencing their slowest construction rates since 2019. In 2025, New York issued permits for only 1.6 new multifamily units per 1,000 residents, a decrease from 2.3 in 2019, while Boston permitted 1.1 units, down from 2.0 in 2019.

This year, New York City’s Rent Guidelines Board sanctioned a rent freeze, and the Massachusetts Supreme Judicial Court invalidated a statewide rent control proposal, preventing it from appearing on the November ballot.

“It’s interesting to see how differently policymakers approach rent regulation. Rent control and rent freezes can protect the renters already in a unit, but they don’t do anything to bring the market rate down for everyone else,” Xu said. “Sustainably lower rent comes from more supply, and right now that effort looks very different from city to city.”

Conversely, Columbus is experiencing its most rapid construction growth since 2019, partly due to its “Zone In” zoning reform, which is anticipated to facilitate the development of up to 88,000 new homes over the next 10 years. Florida is also on the path to recovery: after a slowdown in 2024, permitting surged in 2025, reaching 4.5 units per 1,000 residents in Orlando and 2.6 in Miami, both figures approaching their peaks from 2021.

San Jose has seen a similar increase in permitting; however, its rental market presents a contrasting situation: the median asking rent reached $3,423 in June, marking the highest level recorded in Realtor.com®’s data history since March 2019, reflecting a 3.3% increase year-over-year as demand fueled by the AI boom in the Bay Area continues to surpass new housing supply.

Las Vegas also achieved its highest permitting rate since 2019, although this appears to be more of a recovery from a decline in 2024 rather than a new record. In contrast, Cleveland, Oklahoma City, Providence, RI, and Birmingham, AL, tell a different tale: historically, these cities have seen minimal construction, but all four are now beginning to rise from an exceptionally low starting point, indicating that even markets that have long been stagnant may start to provide renters with more choices.

Overall, the data suggests a market in transition: while national rent relief is authentic and anticipated to last through 2026, its effects will vary. Renters in cities with strong permitting activity, such as Columbus and much of Florida, are in the best position to continue receiving this relief. In contrast, those in slower-growing cities, including New York, may find that regulations provide some protection, but they will not experience the comprehensive relief that comes from a greater availability of housing.

To read the full report, click here.