Cities Focus on Construction to Combat Rising Rent; Some Lag Behind

Recent data suggests a notable shift in the housing market, with various metro areas grappling with rising rents and differing rates of new construction. According to the June 2026 Rent Report by Realtor.com, the median asking monthly rent across the nation's 50 largest metropolitan areas has decreased to $1,692, reflecting a 1.5% decline or $25 drop from the previous year. This marks a significant 35 consecutive months of year-over-year reductions, primarily due to a surge in multifamily housing construction outpacing demand.

A Closer Look at Regional Disparities

The analysis reveals a stark contrast in how different regions are addressing the housing crisis through construction. Major cities like New York and Boston are now experiencing the slowest construction rates since 2019. Specifically, New York permitted just 1.6 multifamily units per 1,000 residents last year, whereas Boston recorded a mere 1.1. In contrast, cities like Orlando, Florida, and Columbus, Ohio are ramping up their construction efforts significantly, with projections that could offer substantial relief to renters in these regions.

"This situation didn’t come about by chance. Builders have been working hard to catch up after the pandemic spurred a spike in rental prices, resulting in this three-year-long decline in rents," stated Jiayi Xu, an economist at Realtor.com. "Now, the question of where rent relief will manifest next hinges on permitting and construction activity, which varies widely by city."

While the overall rent has decreased, it remains $238 (16.4%) higher than pre-pandemic levels, suggesting that despite improvements, many renters are still facing high costs. Moreover, a typical seasonal increase in rent is anticipated this summer; however, because of the ongoing construction of new housing units, experts expect year-over-year declines and continued affordability improvements through 2026.

The Permitting Landscape

The permitting data for multifamily units illustrates this discrepancy further. In 2025, 302,730 multifamily units were approved nationally, a 1.9% rise from 2024 but still 13.1% below the numbers seen in 2019. Regions showing particularly robust construction include Columbus, Ohio, which is benefiting from a recent zoning reform aimed at producing up to 88,000 new homes in the coming decade. Florida’s permitting also rebounded sharply after a downturn in 2024, with Orlando permitting 4.5 units per 1,000 residents and Miami at 2.6, both nearing their 2021 peaks.

Conversely, markets such as Seattle and New York remain sluggish, reflecting recent challenges in balancing rent control policies with the need for increased housing supply. Notably, New York City’s Rent Guidelines Board has implemented a rent freeze to assist existing tenants, while Massachusetts faced a setback with the rejection of a statewide rent control initiative.

Xu commented, "While rent freezes offer temporary solace to current tenants, they fail to address the broader market dynamics necessary for sustainable rent decreases, which ultimately rely on enhancing supply. Regrettably, this effort appears to diverge significantly across different cities."

Future Outlook

Despite the uneven landscape of rental prices and construction, there is an overarching expectation that renters in markets with robust permitting trajectories, like Columbus and various Florida cities, will likely see continued relief. On the other hand, those in areas like New York, where construction is lagging, might struggle to achieve the same level of affordability.

As we navigate through 2026, one can anticipate that while national trends herald a gradual shift towards lower rents, the journey will be anything but uniform across the nation. States and cities must take proactive measures, particularly in permitting and supporting construction, to ensure that all renters can enjoy the benefits of greater housing availability and affordability in the years to come.