Americans Find Rental Relief
New data shows rents dropping below historic trends in majority of large U.S. cities
OXFORD, Miss. – While buying a home remains financially out of reach for millions of Americans, a new housing market report brings a wave of relief for renters. Across the United States, rental prices are finally cooling down.
According to the latest data from the Waller, Weeks and Johnson Rental Index (WW&J) rents are currently trading at a distinct discount compared to their long-term historical averages in 57 of the nation’s 100 largest rental markets.
On a national scale, the average monthly rent has fallen to 1.57% below the country's long-term rental trend. This shift marks a significant turning point for a housing market that has faced severe pandemic-era inflation over the last several years.
Understanding the Rental Index: Premiums vs. Discounts
WW&J tracks data by looking backward to project the future. By analyzing historical rental pricing dating back to 2015, the index establishes a mathematical baseline of where rental prices should be in a balanced market. This baseline is known as the “long-term rental trend.”
Rental Premium: When actual market rents rise above this historical baseline, tenants face a premium, meaning they are overpaying based on historical norms.
Rental Discount: Conversely, when actual market rents drop below the baseline, a discount occurs, giving renters more bargaining power and cheaper monthly payments.
Currently, more than half of the top metropolitan areas in the United States have officially crossed over into “discount” territory.
The Top 10 Deepest Discount Cities in the U.S.
The rental relief is not distributed evenly across the country. The deep discounts are heavily concentrated in the Sun Belt and Western states, which are regions that previously saw explosive population growth and soaring housing prices.
According to the index, the ten cities offering the steepest rental discounts right now are:
- Cape Coral, FL (–10.97% below trend)
- Austin, TX (–9.78% below trend)
- Phoenix, AZ (–9.16% below trend)
- North Port, FL (–9.10% below trend)
- Las Vegas, NV (–6.77% below trend)
- San Antonio, TX (–6.61% below trend)
- Denver, CO (–6.31% below trend)
- Tampa, FL (–6.09% below trend)
- Colorado Springs, CO (–6.08% below trend)
- Salt Lake City, UT (–6.07% below trend)
In cities like Cape Coral and Austin, tenants are saving roughly 10% compared to what historical growth patterns in rents predicted, resulting in hundreds of dollars in unexpected annual savings for local households.
The main driver of moderating rents appears to be the over development of multifamily housing units in recent years.
WW&J regularly reports on estimated rents, actual rents, rental premiums/discounts, periodic rent increases (such as year-over-year), and affordability thresholds. The full report can be accessed at Waller, Weeks & Johnson Rental Index..
Ken Johnson, Ph.D.
Christie Kirkland Walker Chair of Real Estate| Professor of Finance
University of Mississippi
khjohns3@olemiss.edu
By
Ken Johnson, Ph.D.
Campus
Office, Department or Center
Published
June 03, 2026