Median U.S. rents decreased in July, according to Realtor.com, as more than three years of month-over-month annual rent declines continues through the middle of 2026.

Rents for two-bedroom units fell 1.4% from a year earlier to land at $1,893, or roughly 17.5% higher than July 2019, before the COVID-19 pandemic. Across all unit sizes, median rents were $1,695, also down 1.4% annually and 15.3% higher than pre-pandemic levels.

“Renters have gained meaningful financial breathing room over the last three years, and that advantage is still real in many major metros,” said Jiayi Xu, senior economist at Realtor.com, in the monthly rent report.

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Cooling rents have been supported by elevated multifamily construction activity in recent years, as apartment construction rebounded across the U.S. due partly to low interest rates during the pandemic.

At $1,685, median rents for two-bedroom units across the 50 largest U.S. markets were actually lower than the national two-unit median in July. But for renters in certain markets — many of whom are prospective buyers sidelined by historically high home-purchase costs — shelter savings are “no longer moving in just one direction,” according to Realtor.com.

“Starter-home prices are falling faster than rents in many places, giving households who are ready to buy a stronger reason to stay engaged with the market,” said Xu, underscoring narrowing affordability gaps between rents and starter-home prices in some markets.

While renting remains the more affordable shelter option in most markets, that advantage is shrinking, says Realtor.com.

Across the 50 largest metros, the median list price of a starter home fell 2.9% in July, compared with a 1.4% yearly decline in rents. The average monthly cost of buying a starter home was $858 higher than renting, down from $923 a year earlier.

The estimated monthly cost of purchasing a starter home was still around $2,553 in July across the 50 largest metros. But that was $89 lower than a year earlier, as a result of lower list prices and lower mortgage rates, compared to just $24 in typical rent relief.

In Oklahoma City, for example, median rents of $915 were 1.5% lower over the year compared to a 9% decline in median starter-home prices. In pricier markets like Miami and Nashville, Tenn., respective annual rent declines of 1.3% and 3.9% were outpaced by declines of 5% and 5.4% in median starter-home prices.

“Improving buying conditions do not make the decision to purchase automatic, especially when renting is still cheaper,” Xu concluded. But she emphasized that as rents continue to soften, “more flexibility and confidence” may help return sidelined buyers to the market.