"2025 is a renter's market," Daryl Fairweather, chief economist at Redfin, has said

As of December, the median asking rent in the U.S. was $1,695, down 0.5% — or $8 — from November, according to a new report from Realtor.com.

The latest figure is 1.1% lower — or $18 — compared to the same time last year and 3.7% below the peak in July 2022.

Rental affordability has improved partly due to a "construction boom" of new apartment buildings during the pandemic, explained Daryl Fairweather, chief economist at Redfin.

"There are still units coming online now from projects that started back in 2021 and 2022," she said.

With more new units on the market, some property managers are lowering their asking prices to attract tenants, experts say.

This shift gives renters more negotiating power when discussing lease terms, Fairweather noted.

"We're calling it a renter's market. We expect that trend to continue through the next year," she added.

However, the increase in newly built apartments isn’t evenly spread across the country, causing rent prices to drop faster in some regions than others.

For example, Austin, Texas, saw some of the highest levels of multifamily housing construction in recent years. The city’s median rent in December was $1,394, down from $1,482 in August, marking a 17.6% drop from the previous year.

Experts predict rents in Austin will keep falling as supply grows and demand stabilizes.

What you can negotiate as a renter will ultimately depend on market conditions in your area or where you plan to move.