Apartment rents across the U.S. continued to cool in October, marking the fourth consecutive month of decline, according to Zumper’s latest national rent report. The trend reflects a perfect storm of record-high new deliveries, slower job growth, and more cautious renter behavior as economic uncertainty lingers.

The national median rent for a one-bedroom apartment dropped 0.4% from September to $1,511, while two-bedrooms fell 0.3% to $1,888. Year-over-year, rents are down 1.5% and 1.2%, respectively.

Los Angeles Leads the Downturn

Los Angeles recorded its fifth straight month of rent declines, with one-bedroom rents down 6.3% to $2,250 and two-bedroom units dropping 9.9%. New apartment completions in L.A. have jumped 93.7% year-over-year, one of the highest increases nationwide Deliveries are expected to peak by mid-2026—signaling further downward pressure as new inventory competes for tenants.

Nearby San Diego and Anaheim are seeing similar patterns. Both markets are still in expansion mode, with new construction accelerating more than 70%. San Diego’s one-bedroom rents are down 6.3% year-over-year, while Anaheim posted 1.9% and 3% declines across one- and two-bedroom units. Analysts expect both to follow L.A.’s path of softening rents through 2026.

National Highlights

• New York City rents declined both month-over-month and year-over-year for the first time since 2021.
• San Francisco saw the steepest annual increase in the country (+17.6% for two-bedrooms), signaling a post-pandemic rebound.
• Washington, D.C. and Arlington both posted annual rent drops, linked to federal job cuts and the recent government shutdown.

At Lucrum Real Estate Group, we view this cooling period as a natural recalibration following years of rent acceleration and limited supply. While declining rents may challenge short-term returns, they also create strategic opportunities for repositioning and acquisition.

For investors, this is an ideal time to identify undervalued multifamily assets, especially in submarkets where new supply will taper off by 2026. For current owners, focusing on tenant retention, operational efficiency, and forward-looking refinancing strategies can help preserve long-term value.

Our team is closely tracking rent trends, absorption rates, and delivery schedules across Los Angeles, Ventura, and the greater Southern California region to help clients make data-driven decisions in this shifting landscape.

Next Steps for Property Owners & Developers

• Review your current rent roll and assess exposure to new competing units.
• Evaluate refinancing timelines before debt maturities, as valuations may adjust with lower NOI projections.
• Explore repositioning or ADU potential to stay competitive in a rent-sensitive market.
• Monitor 2026 pipeline slowdowns to time acquisitions or redevelopment strategically.
• Expect modest cap rate expansion as buyers adjust to lower rent growth expectations and tighter financing conditions.

Industry analysts expect rent moderation to continue through late 2026 as the wave of new construction completes and absorption gradually catches up. Once the pipeline stabilizes, Southern California could return to steady, sustainable rent growth — supported by strong long-term demand, limited land availability, and ongoing in-migration to key job centers.

Despite the current cooling, average L.A. rents remain roughly 15% higher than pre-pandemic levels, underscoring the region’s long-term strength and desirability.

Let’s Talk Strategy

Your success starts with clarity. If you’d like to discuss your property’s position in today’s market—or request a no-obligation opinion of value—our team is here to help. Call us at 866.582.7865 or Request Your Valuation.

Source: Globest.com