Real Estate

Austin, Birmingham and Memphis Lead U.S. Rent Declines

Renters in America's 50 largest metros continue pulling back from the pandemic peak, and February data show rents retreating for the 30th straight month. Realtor.com’s analysis puts the median asking rent for 0–2 bedroom units at $1,667, down 1.7% month over month, led by Austin, Birmingham, and Memphis.

📅 March 17, 2026
⏱️ 2 min read
Austin, Birmingham and Memphis Lead U.S. Rent Declines

Key Takeaways

  • February median asking rent for 0–2 bedroom units across the 50 largest metros fell 1.7% to $1,667—the 30th straight monthly decline.
  • 15 markets are down at least 10% from their peak as of February 2026, underscoring dispersion.
  • Austin saw the sharpest drop from its pandemic peak at 18.2% and was 7.1% lower year over year in February.
  • Birmingham (-17.1% from peak) and Memphis (-16.1% from peak) posted the next-largest declines.
  • Other Sun Belt metros fell double-digit, including Phoenix (-15.6%), Atlanta (-15.2%), Las Vegas (-14.8%), and San Diego (-14.3%); Virginia Beach moved -1.7% from peak with a +4.5% YoY.

People Involved

  • No specific individuals mentioned

Entities Involved

  • Realtor.com Data provider for the rent analysis
  • Fox Business Source publication of the article

MarketMoodz Analysis

For landlords and multifamily investors, the dispersion across metros creates a bifurcated risk profile. In high-cost markets, double-digit corrections can pressure cash flow and compress cap rates, influencing refinancing decisions and development pacing. By contrast, more affordable metros may see steadier occupancy as affordability pressures ease and migration dynamics shift demand.

The February snapshot fits a multiyear arc: peak rents in 2022, a broad pullback through 2023–2024, and ongoing moderation into 2026. Even with a 5.1% decline from the 2022 peak across all metros, rents remain roughly 14% above pre-pandemic levels, underscoring that the unwind is not a uniform reset.

What to watch next: the supply pipeline and new units, refinancing costs, and tenant-credit risk management. Reno’s mention as a California affordability destination hints at continued migration shifts; monitor vacancies and rent trajectories as new deliveries come online.

Source: Original Article

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