19 cities where rent is falling fast, even as price hikes continue to frustrate consumers

• Rents rose last quarter, according to a new study of over 750 US real-estate markets.
• Both tenants and homebuyers lost out as prices remained elevated.

Renters might not have many reasons to celebrate after all.

Landlords consistently increased rents across the US in the third quarter, according to new data from real-estate site Rentometer. The hikes were modest but unmistakable, rising 0.5% from the second quarter and 3% from 2023 — a bit above last month's inflation rate, which came in hot.

That appears to clash with recent rent reports from Realtor.com and rental listings site Zumper, which found that apartment prices in the largest US cities declined modestly in September.

However, this isn't an apples-to-apples comparison, as Rentometer's report encompasses all of the third quarter and 757 markets across six regions, instead of just the 50 or 100 biggest ones.

Just like with inflation, there are at least two ways to interpret this data. The glass-half-full view is that price increases for single-family rental units are rather low, at least compared to the surges early in the pandemic. But while the rate of price increases is slowing, even from the prior quarter, renters are still coughing up more than they were last year, according to Rentometer's report.

Anyone who doesn't own property is caught between a rock and a hard place, as rent is up but property prices remain exorbitant. Mortgage rates are also climbing again, even though they're down significantly from their peak last fall. That's why home sales have continued to tumble.

Those affordability constraints "have kept many would-be buyers in the rental market," researchers at Rentometer wrote in their October 23 report. However, they noted that the places with major home-price growth also had some of the fastest rent growth.

Softer demand hasn't hurt home prices because of the long-standing housing market shortage. There's a similar dynamic going on in the single-family rental market, according to Rentometer.

"While apartment rents have softened due to a boom in new construction leading to increased competition and higher vacancy rates, there has been limited new construction for single-family rentals," researchers at Rentometer wrote. "The vast majority of single-family rentals come from existing housing stock."

Fewer single-family units to choose from means that tenants have less bargaining power and may be forced to accept rent increases. Of course, property owners aren't complaining.

Although rent broadly is on the upswing, there are many cities where single-family rental units are getting cheaper, even if they're admittedly few and far between. Of the 757 real-estate markets in Rentometer's analysis, only 110 saw rents decline in the third quarter.

Savings on single-family rental units were hardest to find in the Midwest and Northeast, where prices were each up over 9% compared to the third quarter of 2023. Renters may have had better luck in the Southeast and Southwest, where prices were up 3.6% and 2.2%, respectively.

However, those who look in the right places can still score deals. Business Insider analyzed Rentometer's data and found that rent fell by at least 5% in 19 markets. Below are those places, along with their average rent and rent growth in the third quarter, plus their region.

1. Newport, Rhode Island

Marianne Campolongo/Shutterstock

Average rent in Q3: $3,471

Rent growth in Q3: -16%

Region: Northeast

2. Anderson, Indiana

WIPB TV

Average rent in Q3: $1,216

Rent growth in Q3: -12%

Region: Midwest

3. Long Beach, New York

Michael Rega/Shutterstock

Average rent in Q3: $4,149

Rent growth in Q3: -11%

Region: Northeast

4. Bozeman, Montana

Shutterstock.com / Colton Stiffler

Average rent in Q3: $2,944

Rent growth in Q3: -11%

Region: Rocky Mountain

5. San Marcos, Texas

San Marcos is near New Braunfels, Texas.      Regan Bender/Shutterstock

Average rent in Q3: $1,961

Rent growth in Q3: -9%

Region: Southwest

6. Tuscaloosa, Alabama

The University of Alabama, Tuscaloosa.      The University of Alabama, Tuscaloosa / Facebook

Average rent in Q3: $1,571

Rent growth in Q3: -8%

Region: Southeast

7. Wilton Manors, Florida

Wilton Manors is near Fort Lauderdale.      John Coletti

Average rent in Q3: $4,746

Rent growth in Q3: -8%

Region: Southeast

8. Fort Smith, Arkansas

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Average rent in Q3: $1,311

Rent growth in Q3: -7%

Region: Southeast

9. Lehigh Acres, Florida

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Average rent in Q3: $2,089

Rent growth in Q3: -7%

Region: Southeast

10. Bonita Springs, Florida

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Average rent in Q3: $4,522

Rent growth in Q3: -7%

Region: Southeast

11. Harker Heights, Texas

Harker Heights is near Waco, Texas.      TrongNguyen/Getty Images

Average rent in Q3: $1,651

Rent growth in Q3: -7%

Region: Southwest

12. Missoula, Montana

The western Montana city of Missoula has loosened land-use restrictions, in part as a way to encourage the construction of accessory dwelling units on single-family lots.      Justin Sullivan/Getty Images

Average rent in Q3: $2,235

Rent growth in Q3: -7%

Region: Rocky Mountain

13. Naples, Florida

LUNAMARINA/Getty Images

Average rent in Q3: $4,538

Rent growth in Q3: -6%

Region: Southeast

14. Yuma, Arizona

Yuma, Arizona.      David McNew/Getty Images

Average rent in Q3: $1,664

Rent growth in Q3: -6%

Region: Southwest

15. Live Oak, Texas

Live Oak is outside of San Antonio, Texas.      Sean Pavone/Shutterstock

Average rent in Q3: $1,646

Rent growth in Q3: -6%

Region: Southwest

16. O’Fallon, Missouri

O'Fallon is near St. Louis.      Art Wager/Getty Images

Average rent in Q3: $2,022

Rent growth in Q3: -5%

Region: Midwest

17. Oviedo, Florida

Oviedo is close to Orlando.      Smithlandia Media/Getty Images

Average rent in Q3: $2,374

Rent growth in Q3: -5%

Region: Southeast

18. Hutto, Texas

Hutto is near Round Rock, Texas.      Round Rock, Texas - Government/Facebook

Average rent in Q3: $2,051

Rent growth in Q3: -5%

Region: Southwest

19. Manor, Texas

Manor is near Austin.      RYAN KYTE/Getty Images

Average rent in Q3: $2,025

Rent growth in Q3: -5%

Region: Southwest