Home prices just dipped and apartment rents are rising again, both for the first time in three years

The housing market flipped in two directions at once this fall. The median US home-sale price was $389,601 in the four weeks ending October 25, down 0.1% from a year earlier, according to Redfin. It was the second straight week of small declines and the first drop in more than three years. At the same time, Apartment List said its national median rent rose 0.1% from a year earlier in October, the first annual gain since mid-2023.

Both changes are tiny. What makes them notable is the direction. Apartment List's annual rent growth bottomed at -1.6% in April 2026 and has climbed back since. The broader index behind RentDataNow, the Zillow Observed Rent Index, which counts houses and condos as well as apartments, shows the same turn from a higher starting point. Typical US rent was $1,932 in September 2026, up 2.9% from a year earlier, the fastest annual pace since September 2024. That pace bottomed at 1.7% in March.

Buying is still far more expensive than renting each month. Redfin put the median monthly mortgage payment at $2,786, up 10.7% from a year earlier and the second-highest in its records, with the average mortgage rate at 7.32%. That's about $850 a month more than typical rent. Redfin also said pending home sales fell to the lowest level in its records, which go back to 2021, and new listings hit their lowest point since the start of the year.

CNBC's Diana Olick tied the two trends together, writing that with the for-sale market stalled, more renters are staying put, and that is pushing rents up again. Apartment List's economists made a similar point, saying some would-be first-time buyers may keep renting longer, which adds pressure on the rental market.

Renters still have some bargaining room. Apartment List said 32% of apartment properties were offering concessions worth at least one month of free rent in October, up from 28% a year earlier. Its national vacancy rate was 7.0%, down from a peak of 7.3% in February, and units took 36 days on average to lease. Chris Salviati, Apartment List's chief economist, wrote that the concession rate "continues to show signs of softness."

The biggest gains are in the Bay Area. Apartment List had the San Francisco metro up 13% and San Jose up 9%, with the city of San Francisco up 24%. In RentDataNow data, typical rent in San Francisco was a record $4,784 in September, up 26.3%, and San Jose was up 7.7% to $3,582.

The Sun Belt cities that built the most apartments are recovering, though the two measures don't fully agree. Apartment List still had rents falling in the Austin metro, down 1.2% from a year earlier but much less than its 6.2% drop in 2025, and listed San Antonio among the steepest declines. In RentDataNow data, Austin's typical rent is up 0.8% to $1,571, still 10.4% below its July 2022 peak. San Antonio is down 0.9% and Tampa is down 0.3%, while Phoenix is up 1.1% and Las Vegas is up 0.9% to a record $1,700.

For renters, that adds up to a market that's firming but not hot. Concessions are still common, so asking for a free month or a smaller renewal increase is reasonable, especially in Sun Belt cities with lots of new buildings. Fall and winter are also when landlords usually offer modest discounts to fill units, Apartment List said, though this year the dip is smaller. Its rents fell 0.3% from September to October, compared with 0.8% a year earlier. For tactics, see how to negotiate rent, and for the city-by-city picture, our September rent report.

Sources

• CNBC, "Home prices fall and rents rise, both for the first time in 3 years" (October 29, 2026)
• Redfin, "U.S. Home-Sale Prices Just Fell for the First Time in 3 Years" (October 29, 2026)
• Apartment List National Rent Report, October 2026
• RentDataNow national and city rent data, anchored to the Zillow Observed Rent Index, September 2026