The cooling rental climate is largely driven by a surge in new multifamily construction and accessory dwelling units, which has expanded inventory for smaller, entry-level apartments. The median rent for units with up to two bedrooms fell 3.6% compared to last year. While this shift offers some breathing room, it has not fully restored affordability for the Class of 2026. A typical business graduate, for instance, would still see 30.4% of their income absorbed by studio rent, while those in communications face a 32.8% burden.

Jiayi Xu, an economist at Realtor.com, notes that while renters are finding more options, the reality for entry-level workers remains difficult. Even with prices sitting 9.6% below the 2022 peak, many graduates are still forced to spend at or above the recommended 30% of their earnings on housing. This creates a stark contrast to the national average across the 50 largest U.S. metros, where graduates generally commit a smaller percentage of their starting pay to rent.