The U.S. rental market has officially tipped in favor of tenants.
The average rental vacancy rate across the nation’s 50 largest metros climbed to 7.6% in 2025, up from 7.2% in 2024.
Forty-four of the 50 largest metros are now renter-friendly or balanced, leaving just six markets where landlords still have the upper hand.
The news for people looking for housing hasn’t been that good for several years, but it’s getting better. After years of tight supply and surging rents, renters are finally gaining leverage.
According to Realtor.com’s January Rental Report, rising vacancy rates are reshaping the housing landscape, giving tenants more choices and more negotiating power. The shift comes as new apartment construction and softening demand combine to ease pressure in many major metro areas.
Nationally, January marked the 29th consecutive month of year-over-year rent declines. The median asking rent fell 1.5% from a year ago to $1,672.
“After years of being squeezed by limited inventory, renters are finally seeing the supply wave work in their favor,” said Danielle Hale, chief economist at Realtor.com.
“This shift doesn't just mean lower prices; it means that renters today have more options and more bargaining power. While the market isn't uniform everywhere, the broader trend is a move toward a much-needed equilibrium that allows for more flexibility and choice in the housing search.”
Vacancy surge shifts market power
A vacancy rate above 7% generally signals a renter-friendly market, while rates between 5% and 7% indicate balance. Anything below 5% tends to favor landlords.
This year, 22 of the top 50 metros qualify as renter-friendly, and another 22 are balanced. Only six remain landlord-friendly.
Milwaukee posted the most dramatic turnaround. Its vacancy rate more than doubled, jumping from 4.9% in 2024 — when landlords held the advantage — to 10.8% in 2025, firmly placing it in renter-friendly territory. The city’s median asking rent rose 1.2% year over year to $1,630, but the surge in supply signals a sharply looser market overall.
Austin continues to stand out for renters as well. With a vacancy rate climbing to 13.8% — the highest among the 50 largest metros — the Texas capital remains deeply renter-friendly. Median rents there fell 7.3% year over year to $1,358.
Other metros with double-digit vacancy rates include Dallas (10.5%), Houston (11.4%), Nashville (11.1%), Tampa (11.4%), and Memphis (10.6%), reflecting robust construction pipelines in many Sun Belt markets.
Markets where landlords still hold firm
Despite the broader shift, a handful of coastal hubs remain tight. Boston (3.2%), San Jose (3.5%), and New York (4.6%) all posted vacancy rates below 5%, keeping them landlord-friendly. Limited supply in these markets continues to constrain renters’ options.
In fact, rents rose year over year in San Jose (+1.9%) and New York (+0.8%), bucking the national downward trend. San Jose now has the highest median asking rent among the largest metros at $3,319, followed by New York at $2,882, and Boston at $2,851.
Other landlord-leaning markets include Los Angeles (4.4%), Riverside, California (3.3%), and Providence, Rhode Island (3.7%).