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flag Rental prices fell in 2025 due to new apartments, but construction dropped, risking higher rents in 2026.

flag Rental prices in major U.S. cities dropped in 2025 due to a surge in new apartments built in 2024, but construction activity slowed sharply in 2025, with starts down 11% and completions down 42% year-over-year. flag Higher costs, interest rates, and labor shortages are hindering new builds, especially in big cities, despite increased permits. flag With demand for rentals rising due to unaffordable home prices, experts warn that limited supply growth could lead to tighter markets, higher rents, and more shared living arrangements in 2026.

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