US home sale prices fall and rents rise, Redfin and Apartment List say

For the first time in more than three years, the median U.S. home sale price fell while rents rose, according to data released in October. High mortgage rates and broader economic caution have frozen for-sale transactions, prompting buyers to step back and renters to stay put.

The median U.S. home sale price dropped 0.1% year over year for the four weeks ending Oct. 25, according to a report from the real estate brokerage Redfin. This minor dip ends more than three consecutive years of price gains. Even with a slight pullback in recent weeks, mortgage rates remain roughly a full percentage point higher than they were one year ago. Those elevated borrowing costs leave the typical homebuyer’s monthly payment sitting at the second-highest level on record.

Sales Contracts Fall as Listings Dry Up

Higher financing costs have choked off buyer demand and altered seller behavior. Redfin reported that new listings fell to their lowest level since the start of 2026 as owners lost the pricing advantage they held during earlier periods of high demand. Sellers can no longer command the figures they previously expected. Meanwhile, pending home sales—measuring signed contracts on existing properties—continued to slide. A separate report from the National Association of Realtors showed that September pending sales sank to their lowest level in 25 years.

pending home sales sank to their lowest level in 25 years.

National Rents Reverse Course as Tenants Stay Put

With the purchase market stalled, renters have fewer exit ramps, keeping them in place and pushing rents upward. Apartment List reported that the nationwide median rent rose 0.1% in October, marking the first gain in over three years following a prolonged period of falling rents driven by an oversupply of new multifamily units.

The national multifamily vacancy rate stood at 7% in October. While that remains elevated compared to long-term norms, vacancies have continued to decline after peaking earlier this year.

The vacancy rate is also gradually tightening, as the market transitions out of the soft conditions that have prevailed in recent years, wrote Chris Salviati, chief economist at Apartment List, in the report. Salviati also pointed to ongoing softness in landlord concessions, noting that market indicators tracking concession rates continue to show signs of softness as empty units slowly fill.

Regional Divergence Across the Sun Belt and Bay Area

Regional housing trends show sharp contrasts across the country. Heavy construction over the past several years flooded parts of the Sun Belt with new inventory, driving down rents. Markets like Austin, Phoenix, and Tampa are finally beginning to recover from that oversupply. However, Phoenix, Las Vegas, and San Antonio continue to post the steepest rent drops in the nation.

Conversely, the San Francisco Bay Area led the nation in rent growth, surging 13.1% year over year, followed closely by San Jose, California.