Rents Are Softening and Vacancies Are Rising. What Property Owners Should Expect in 2026
Over the past several years the rental market has been unusually strong. Many property owners experienced rapid rent growth and extremely low vacancy. In many cases, properties leased within days and renewal increases were easy to achieve.
That environment is beginning to shift.
Recent national data shows that rents have started to soften slightly and vacancy rates are rising in many markets. While this does not signal a major downturn, it does mean property owners should expect a more competitive leasing environment than what we experienced during the peak of the rental market.
Understanding these changes can help owners set realistic expectations and make better decisions when pricing and marketing their rental properties.
Rents Are Declining Slightly Nationwide
According to the latest Realtor.com rental report, the national median asking rent for studio, one-bedroom, and two-bedroom properties was $1,672 in January 2026.
That represents a 1.5% decline compared to the previous year and marks the 29th consecutive month of small year-over-year rent declines.
Even with these declines, it is important to keep the broader context in mind. Rents remain about 15% higher than they were before the pandemic, and only slightly below the peak levels reached in 2022.
In other words, the rental market is not collapsing. Instead, it is gradually cooling after several years of unusually rapid growth.
Vacancy Rates Are Rising
Another important trend owners should be aware of is the increase in vacancy rates.
Across the 50 largest metropolitan areas, the average rental vacancy rate rose to 7.6% in 2025, up from 7.2% in 2024.
In general:
- Vacancy below 5% favors landlords
- Vacancy between 5% and 7% represents a balanced market
- Vacancy above 7% tends to favor renters
At 7.6%, many markets are now moving into slightly more renter-friendly conditions. This means tenants have more choices, and properties may take a little longer to lease than they did in recent years.
Why the Market Is Shifting
Two primary factors are driving this change.
First, a large number of new rental units are entering the market. Many multifamily construction projects that began during the housing boom of 2021 and 2022 are now being completed, increasing the overall supply of rental housing.
Second, the rapid rent growth experienced during the pandemic years has simply normalized. Markets rarely sustain that level of growth indefinitely.
The result is a rental market that is returning to more typical conditions where supply and demand are more balanced.
What We’re Seeing Locally in Oconee County
National trends are helpful, but real estate is always local. Recent data suggests similar patterns are beginning to appear in Oconee County and across the Upstate. The median rent in Oconee County is currently around $1,650 per month, with average rents closer to $1,349 depending on property type.
These figures remain significantly lower than the national average, which helps keep the area attractive for renters. However, local property owners are beginning to notice the same shifts seen across the country. Properties may take slightly longer to lease, and tenants are often comparing more options before making a decision.
While rents may fluctuate year to year, the Upstate remains one of the more affordable regions in the country, which continues to support long-term rental demand.
What Property Owners Should Expect
As the market normalizes, owners may notice several changes during the leasing process.
Properties may take longer to rent than they did during the peak market. Tenants may be more price-sensitive and more willing to compare multiple options before committing. In some cases, aggressive rent increases may also become less common.
This does not mean rents will fall dramatically, but it does mean pricing strategy will become more important than it has been in recent years.
The Cost of Overpricing a Rental
One of the most common mistakes owners make during a softer market is pricing a property too high at the start of the leasing process.
A property that sits vacant for several weeks often costs more than simply pricing it competitively from the beginning.
For example, if a property could rent for $1,800 per month but sits vacant for a month because it was initially priced too high, the owner effectively loses $1,800 in income. Even lowering the rent slightly at the beginning would often have resulted in a better financial outcome.
In a more competitive rental market, accurate pricing is one of the most important tools for minimizing vacancy and protecting long-term rental income.
The Bottom Line
The rental market is transitioning from the unusually strong conditions of the past few years to a more balanced environment.
Rents are softening slightly, vacancy rates are rising modestly, and tenants have more options than they did during the peak of the market.
For property owners, the key is simply adjusting expectations and focusing on competitive pricing, good property maintenance, and tenant retention. Owners who adapt to the changing market conditions will continue to see strong long-term performance from their rental properties.
