In the beginning of the new year of 2026, just a month in, both Los Angeles and the entire United States have reached the lowest point in rent prices in four years.
According to data from the rental matching platform “Apartment List,” the median rent in the U.S. in January this year ($1,353) has been decreasing for the sixth consecutive month, marking the fourth consecutive winter with noticeable off-season rental declines. Winter typically sees a decrease in renters, leading to soft rental prices in line with seasonal market trends.
However, the 0.2% monthly decline is the smallest since August last year. The report suggests that this indicates the market is gradually emerging from the off-season, with rental prices expected to recover growth in the coming months.
At the same time, the median rent in January decreased by 1.4% compared to the same period last year, a 6.2% decrease from the peak in 2022.
The report attributes the market’s sluggishness over the past three years mainly to a historic surge in the construction of multi-family residences, resulting in a significant increase in new housing supply entering the market while demand remains relatively weak, leading to a continued rise in vacancy rates. Based on this month’s data, the vacancy rate for multi-family residences in the U.S. reached 7.3%, setting a record high since 2017.
In 2024, over 600,000 newly built multi-family residences were introduced into the U.S. market, setting the highest annual supply increase record since 1986. Nearly 500,000 units were delivered in 2025, with an expected decrease in delivery volume this year. Despite the anticipated significant drop in supply, the number of multi-family residences entering the market this year is still expected to surpass the long-term average.
With the increase in new housing supply, the vacancy period for properties has extended accordingly. In January, the time it took to rent out a property increased by 4 days compared to a year ago, taking 41 days to rent out, marking the longest period since 2019.
The report also points out that there have been changes in the seasonal cycle of the housing rental market in recent years. May typically marks the peak annual rent growth, but over the past three years, March has become the fastest-growing month for rent; the months with the fastest rent growth before the pandemic have also slowed down. Furthermore, the timing of rent decreases has been pushed earlier, from September to August each year.
Based on the rental change patterns provided in the report, January might be the best time to rent a property, as better prices can be obtained. Looking at the median rent across the U.S., waiting until March to May may result in paying an extra few tens of dollars per month.
The report also shows that among the 54 metropolitan areas in the U.S. with a population of over one million, 39 saw a month-over-month decrease in rent prices this month, with 32 witnessing a year-over-year decrease—primarily concentrated in the southern and western mountain regions, while rental markets in the northeastern, midwestern, and western coastal areas are still heating up.
The metropolitan areas with the highest annual rent growth rates are Virginia Beach, Virginia (5.0%), followed by San Francisco and San Jose, California (4.6% and 4.8% respectively), with Chicago ranking fourth at 4.2%. The report attributes the rise in rent to the influx of high-paying tech jobs in the Bay Area.
On the other hand, over the past year, the areas with the largest rent declines were Austin, Texas (-6.3%), followed by New Orleans, Louisiana (-5.1%), San Antonio, Texas (-5.0%), Tucson, Arizona (-4.9%), and Denver City, Colorado (-4.6%).
In Los Angeles City and Los Angeles County in Southern California, the median rents in December of last year were $2,167 and $2,035 respectively, marking the lowest points since January 2022. These statistics include one-bedroom and two-bedroom apartments.
According to the Los Angeles Times, some tenants have found their monthly rents reduced, with some renters negotiating with landlords to lower rents by around $200.
Meanwhile, rent levels in Orange County, Ventura County, San Bernardino County, and overall California have remained stable or slightly increased.