Leasing in 2026: What Rental Property Owners Need to Know

Every quarter, we dig into Evernest’s internal leasing data and compare it with what’s happening across the broader rental market. By analyzing current trends, we aim to piece together the narrative behind the numbers to prepare for what lies ahead and, just one month into the year, the numbers have some pretty interesting stories to tell.

This Q1 2026 leasing outlook revealed a few clear themes: high-supply conditions are having a big impact on the behavior of renters who are more informed, more price-sensitive, and more selective than they’ve been in years. At the same time, demand is starting to show early signs of recovery in several key markets.

Here’s what stood out — and what it actually means for your rental property portfolio.

What’s Up? What’s Down? What’s Stayed the Same?

 ↑ Price Objections 51%

• Renters are objecting to price more than anything else

With so much inventory in so many markets, renters are finding themselves with more and better options than they’ve seen in years. They’re comparing dozens of homes at a time and the number they see first — the advertised rent — determines whether they click.

This means that strategies like waiving fees aren’t increasing traffic on their own. They help close deals once renters are already at the table, but they’re not getting them through the door. 

In supply-heavy markets, the landlords who are pricing rents accordingly are the ones capturing the demand.

 ↑ Requests for 3D Tours and Videos 26%

• Requests for 3D tours are up year-over-year 

This one is hardly a surprise. 

As websites like Zillow and Realtor.com have become the dominant go-to sources for finding available housing, people have come to expect a lot more information from listings. 

In 2026, large galleries of well-lit professional photos are the bare minimum to effectively market a property and, increasingly, aren’t enough. Large multifamily operators have now trained renters to expect virtual tours, and that expectation is spilling into single-family rentals.

If you want your listings to stand out, especially in high-supply markets, the visuals need to be strong. 

 ↑ Emotional Support Animal and Service Animal Mentions 9%

• Renters are more informed about accommodation rights
  

This isn’t a massive spike, but it’s a clear trend. Renters are more aware of their rights and more proactive about seeking accommodations.

In slower markets, renters are also looking for ways to reduce upfront and ongoing costs. Claiming an animal as a pillar of their physical and/or mental wellbeing as opposed to a pet for which they’ll be charged an additional monthly fee plays into that behavior. 

The takeaway for owners and operators is to stay compliant, stay informed, and understand that this is part of the modern leasing landscape.

↓ Qualification Questions 16%

• Qualification-related questions are down year-over-year
  

At first glance, this sounds like good news. Afterall, fewer questions usually means that listings are clearer and renters are coming in with better expectations. In the current climate, however, that explanation often falls short.

Behind the scenes, average household credit is slightly down and applications per lease are slightly up even after credit requirements have loosened. What’s likely happening is that more qualified renters are staying put, while less-qualified renters are entering the market with fewer questions and more urgency.

In other words, it’s not that renters are more confident that they’re qualified, it’s that they’re in less of a position to be cautious.

↓ Fee Objections 2%

• Fee objections are slightly down year-over-year
  

This was one of the more surprising findings. Despite rent pressure in Q3 and Q4, renters aren’t pushing back more on fees. But why?

The best explanation is that fees have become normalized. Renters expect application fees, admin fees, and pet fees now. Listing platforms like Zillow also make those costs easier to see upfront, so there’s less friction later in the process.

That fee objections are essentially flat (and actually trending downward) only reaffirms that they are not a factor in driving interest. Renters aren’t clicking on listings because of fee waivers, they’re clicking on listings that show the monthly rent at a competitive price.

What Actually Works in Listing Descriptions

Evernest analyzed two quarters of data to see what kinds of listings perform best.

We found the listings that generated the most leads, showings, and applications to have these traits in common:

• Medium-length descriptions- Word counts of 750-1,000 give renters enough information without overwhelming them.
  
• Bullet point formatting- People don’t read rental listings for their literary merit. Bullet points communicate more effectively than paragraphs.
  
• Clear, scannable value highlights- Renters want to know salient information like square footage and pet-friendliness right away without having to search for it. 

On average, listings that followed this format outperformed others by about 12%. 

Remember, the broad theme to be cognizant of right now is the sheer volume of available properties that renters are browsing. Your listings need to be eye-catching and communicate what’s on offer right away. Otherwise, it is too easy for renters to lose interest and move onto the next. 

Allowing Pets Still Has a Massive Impact

• 58% of renters now have pets
  
• Every market showed better performance when pets were allowed
  

This is a trend that we have been noticing for awhile. The majority of renters now have pets, and the percentage of renters looking for pet-friendly housing only continues to grow. 

In our latest data, the biggest gains showed up in mid-priced homes, especially between $1,365–$1,600.

In many cases, not only does not allowing pets fail to protect rent, it actually forces discounting. Even in markets with low supply and low vacancy, it’s a significant handicap to exclude nearly 60% of the renter pool. In markets saturated with inventory landlords are forced to slash prices to compete. 

Demand is Uneven Across the Country (and Even Within Some Cities)

Looking at the overall national picture, several markets are offering good reasons to be cautiously optimistic as we head into the new year. The Lone Star State’s biggest markets– Austin, Dallas, and Houston– have all seen strong rebounds. Jackson, MS continues to outperform national averages, and Evernest listings are doing particularly well in Atlanta, while the broader market there remains stable.

Other markets, particularly in the West, remain soft. Denver and Northern Colorado are still dealing with oversupply. In the desert beyond the Rockies, Phoenix and Las Vegas are showing signs of improvement, but still have a long way to go.

Some cities are seeing certain pockets recovering much more slowly than others. In Evernest’s hometown of Birmingham, AL, for instance, the South side lags behind other parts of the city where demand has really started picking up steam. 

The overall picture is of demand slowly coming back. What stage of recovery you’ll find when you zoom into a given spot on the map, however, varies greatly. Therefore, strategies need to be market-specific. 

Front-End Pricing Matters More Than Ever

Some of our most compelling findings center around the relationship between initial asking rent and lease rent and, once again, supply-heavy conditions are the driving force behind the results. 

Our data show that:

• Homes priced correctly from day one lease faster- Landlords who are able to read the market with the greatest precision are capturing the demand that’s out there early on.
• Homes priced too high at the start require more reductions later- Price overestimation isn’t just causing longer vacancy periods, it's actually forcing landlords to accept lower rents than if they had priced correctly from the get-go.
• Seasonality amplifies pricing mistakes, it doesn’t hide them- Seasonal markets make it much easier to get pricing wrong, but those markets are just as unforgiving of pricing mistakes as others. 
• Over 50% of all leads come in the first 14 days- Miss that window, and even strong concessions won’t fully recover momentum.

Bottom line: pay close attention to where the market is right now and price at a level that you know will generate interest. This isn’t the time to test the upper limits of what people are willing to pay. 

The “Double Dip” Strategy Closes More Deals

In ultra-saturated markets where renters have the most leverage, getting them to sign a lease frequently requires extra sweeteners. Our data showed that instead of choosing between a price drop or a concession, the most effective strategy was combining both

A smaller rent reduction paired with a partial-month concession gives renters an immediate win at move in and a lower monthly payment long-term.

This combination consistently outperformed single-action strategies.

Q1 2026 Outlook: Sunny, but Volatile

Looking ahead, we see several reasons for optimism:

1. New apartment and build-to-rent supply is slowing- Demand looks like it will finally get the chance to start catching up to supply in the year ahead.
   
2. Leasing remains more affordable than buying- Interest rates and asking prices remain high and continue to price a large number of would-be buyers out of homeownership.
   
3. Job growth stability should support demand- Economic stability means that landlords should have a wide enough pool of qualified renters to fill vacancies going forward.
   

However, volatility isn’t going away.

Markets are experiencing faster peaks, shorter plateaus, and sharper drop-offs. Owners who come in with the wrong expectations or wait too long to adjust pricing often miss the window entirely.

The guiding principle for 2026:
When demand shows up, act.

Final Takeaway

Renters are more informed, more selective, and more price-aware than ever. The operators and owners who win in 2026 will be the ones who:

• Price accurately from day one
  
• Market clearly and visually
  
• Stay flexible as demand shifts
  
• Adjust early instead of reacting late

Want assistance listing your rental property in a way that will stand out and reduce vacancy? Contact one of our professional property management experts to discuss the unique needs of your rental property.