U.S. home prices slipped for the first time in more than three years as high mortgage rates and economic concerns kept buyers and sellers on the sidelines. At the same time, rents began rising again after more than three years of declines, according to separate reports from Redfin and Apartment List.
Redfin said the median U.S. home sale price decreased 0.1% from a year earlier during the four weeks ending Oct. 25, 2026. The decline was small, but it ended three consecutive years of annual increases. The figures reflect a housing market in which sales have remained largely frozen in recent months.
Mortgage costs continue to weigh on buyers
Mortgage rates have eased somewhat in recent weeks, but they remain roughly one percentage point higher than a year ago. Redfin said the monthly payment for a typical home buyer is now the second-highest on record. The report did not identify the payment amount, but said the elevated cost is continuing to limit demand.
Pending home sales also continued to decline. These sales measure signed contracts for existing homes and generally provide an indication of future completed transactions. A separate September report from the National Association of Realtors found that pending sales had reached their lowest level in 25 years.
New listings have weakened as well, with Redfin reporting that they were at their lowest level since the beginning of 2026. The shift means sellers have less leverage as available supply increases and prospective buyers pull back. Sellers are no longer able to command the prices they had sought earlier in the housing cycle, according to the report.
- Home prices: The median U.S. sale price fell 0.1% year over year for the four weeks ending Oct. 25.
- Rents: The national median rent rose 0.1% in October, its first increase in more than three years.
- Vacancies: The national multifamily vacancy rate was 7% in October and continued to decline after reaching a high earlier in the year.
Rent increases mark a shift in the apartment market
Apartment List reported that the national median rent increased 0.1% in October. The move was modest, but it represented the first monthly gain in more than three years. Rents had been falling as a large supply of newly built apartments gave renters more options and pressured landlords to hold down prices.
| Measure | Latest result | Period |
|---|---|---|
| Median U.S. home sale price | Down 0.1% year over year | Four weeks ending Oct. 25 |
| Median nationwide rent | Up 0.1% | October |
| Multifamily vacancy rate | 7% | October |
Apartment List said the vacancy rate is gradually tightening as the rental market moves away from the softer conditions seen in recent years. The company also said its indicator for concessions—discounts or other incentives offered by landlords—continued to show weakness in the market. That suggests apartment supply remains elevated even as vacancies decline.
“The vacancy rate is also gradually tightening, as the market transitions out of the soft conditions that have prevailed in recent years,” Apartment List chief economist Chris Salviati wrote in the report.
The combination of high borrowing costs and limited home-sale activity is affecting both sides of the housing market. Buyers face higher monthly mortgage costs, while sellers are confronting weaker demand and fewer opportunities to set prices. Renters, meanwhile, may find that the supply cushion that helped restrain rents is beginning to narrow, although the 7% multifamily vacancy rate remains elevated compared with long-term norms.
