DOM Rising, Leads Decreasing: How to Win in 2026 Regardless (According to Data)
The latest rental market data shows that landlords are seeing fewer leads and longer days on market (DOM), yet conversion rates are… climbing?
What gives?
Well, it seems that while the pool of prospective tenants is shrinking, those who are actively searching are more serious and ready to sign a lease.
We’ve been given access to exclusive data from ShowMojo, covering over 500,000 listings from 2018-today, which sheds some light on these trends.
Here are the 6 key takeaways from the report and the logical steps you can take to stay ahead in 2026.
1. Days on Market (DOM) is Dropping, For Now
At first glance, the numbers look concerning. Days on market continue to trend upward year-over-year.
What the data says:
While the year-over-year trend shows Days on Market (DOM) is still up, we just saw the biggest quarterly drop in DOM in years.
This suggests that while market-wide vacancy is a factor, landlords who are proactive can fill their properties faster.
Why is this happening?
Fierce competition.
High mortgage rates and sky-high home prices have sidelined would-be buyers, pushing more renters into the pool. In hot markets, the number of renters per available unit is more than twice the national average.
This is forcing vacancy rates down and driving renewal rates up. Nationally, lease renewal rates climbed to 62.7%—the highest in years—which is only reinforcing low turnover, tight inventory, and more competitive screening for landlords.
With applicants fighting for limited inventory, well-marketed properties are getting snapped up quickly.
What you can do:
- Optimize Your Marketing Continuously: Don’t let your rental ad go stale. We rewrite the ad copy for our properties every three days. This allows us to test headlines and descriptions, analyze performance, and constantly improve the listing’s ability to attract serious renters.
Monitor Activity Daily: Track web views, inquiries, and showing requests. If activity is low, it’s a clear signal that something—the price, the photos, or the ad copy—needs adjustment. Don’t wait weeks to react.
2. Focus on Lead Quality, Not Just Quantity
Leads have decreased by 19%, and showings are down 6% compared to last year.
What the data says:
This quarter recorded the lowest number of leads on record.
However, the lead-to-lease conversion rate is now 56%—a 15% increase from last year.
Why is this happening?
There’s a big difference between lead volume and lead quality.
You might be getting fewer inquiries, but if your conversion rate is high, you’re spending less time sifting through casual browsers and more time engaging with serious applicants.
With renters fighting for limited inventory, fewer leads can mean higher quality–as long as you’re pre-screening applicants the right way.
What you can do:
- Track Your Conversion Rate: A high volume of leads means nothing if they don’t convert to qualified tenants. A lower volume of higher-quality leads is far more valuable. Monitor both metrics to understand how effective your marketing really is.
- Pre-Qualify Prospects: Use your listing to set clear expectations regarding income, credit, and rental history. This helps weed out unqualified applicants early, saving you precious time.
3. Rent Prices Are Hitting Record Highs
According to our showing partner, ShowMojo, “Rent increases are back—and in a big way.”
In fact, in Q2 2025, rent prices hit their highest point on record.
What the data says:
Consider this:
- Historically, rents rise by about $57 from Q1 to Q2. In 2025, that jump was $96 quarter-over-quarter.
- The year-over-year increase was $100, the third-largest on record.
- The median rent on ShowMojo’s platform reached an all-time high of $1,695.
Why is this happening?
It’s a classic case of high demand meeting limited supply.
The national housing shortage, combined with more people being pushed into the rental market, pushes prices up.
And landlords in some markets are experiencing even bigger rent jumps—RentCafe’s latest data found nearly $200 rent increases in places like Minneapolis over the last few years, with the Midwest leading rental market competitiveness overall.
(We’ve seen $100+ YoY rent increases in Metro Detroit for the past decade or so, too.)
What you can do:
- Price Strategically: This trend signals strong potential for revenue growth. However, overpricing is one of the fastest ways to an extended vacancy period, so find the sweet spot.
- Use a Data-Driven Rent Analysis: There is no single reliable source for rental data. We analyze multiple sources to triangulate the optimal market rent for every property, ensuring you’re not leaving money on the table or scaring away good tenants.
4. Location Matters, But the Dynamics Are Shifting
Rural properties leased fastest, but the numbers for urban and suburban areas tell a more interesting story.
What the data says:
Suburban properties saw the biggest drop in DOM, while urban conversion rates have soared from 39% in 2018 to 57% in 2025.
Why is this happening?
As remote and hybrid work models seem to be here to stay, renters are re-evaluating where they want to live.
Suburbs offer more space, while revitalized urban neighborhoods in places like Detroit provide both affordability and access to amenities.
It’s all down to the lifestyle they want–not necessarily where they work.
What you can do:
- Target High-Demand Areas in Metro Detroit: We continue to recommend the “Ring Cities” and suburbs for their balance of affordable purchase prices and strong rental demand. This is the Goldilocks zone.
- Explore Up-and-Coming Urban Pockets: For investors interested in Detroit proper, focus on neighborhoods with high demand and relative affordability, like Morningside, Cornerstone Village, and the North End. (Check out the links for our full rental investment analysis of each area.)
5. Less Is More With Listings
It feels counterintuitive, but using too many photos in your rental listings can actually backfire.
What the data says:
The data shows that having 26 or more photos can reduce your number of leads by up to 5%.
Why is this happening?
Decision fatigue is real.
A curated gallery of excellent photos tells a better story than an exhaustive, unedited collection. Prospects want to see the highlights, not every corner and closet.
What you can do:
- Curate Your Visuals: Select 10-15 high-quality, professional-looking photos that highlight the property’s best features. Make sure they are bright, well-composed, and watermarked to protect your listing from scams. (Plus, ShowMojo’s findings show that watermarked photos = more leads!)
- Make the First Impression Count: The lead photo is the most important. Choose an image that makes a strong, positive impression and entices prospects to click for more details.
6. Leverage Tours to Your Advantage
This one is interesting–it turns out, the type of tour you offer has a direct impact on your leasing funnel.
What the data says:
3D tours garner 5 more leads on average, while self-guided tours result in 20% more scheduled showings.
So if you want more applicants to choose from, consider 3D tours. If you want more eyes on a property (but which aren’t guaranteed to convert to applications), consider adding self-showing options.
Why is this happening?
Today’s renters expect convenience and on-demand access.
3D tours allow them to pre-qualify properties from their couch, while self-guided tours let them visit on their own schedule.
And, since only 8% of rentals have 3D tours, offering one is a huge differentiator.
What you can do:
- Use 3D Tours to Attract More Leads: While these listings take, on average, one day longer to lease, they provide a larger pool of qualified applicants to choose from. It’s a trade-off for higher quality.
- Offer Self-Guided Tours to Increase Showings: Using a system like ShowMojo for self-guided tours caters to tenants’ schedules and dramatically speeds up the showing process, getting your property seen by more people, faster.
7. Control What You Can in an Unpredictable 2026
What the data says: Macroeconomic factors—elevated interest rates, stabilizing vacancy rates, high inflation, and fewer new housing deliveries—will continue to shape the rental market. You can’t control the global economy.
Why this matters: These external pressures create uncertainty, but they also create opportunity for landlords who are prepared. Tight lending keeps people renting longer, and a slowdown in new construction keeps supply limited. This is a landlord’s market, if you manage it logically.
What you can do:
- Reduce Overhead with Systems: Implement smart maintenance schedules and use automation tools to streamline operations. A systemized approach to everything from rent collection to repair requests reduces costly errors and administrative drag.
- Prioritize Tenant Retention: It can cost up to $5,000 to fill a vacancy. Providing good service and proactive communication is the most effective way to retain good tenants and protect your cash flow.
- Be Agile and Data-Driven: The market is changing fast. The only way to navigate it successfully is to meticulously track your data. A logical property manager provides the most value here—by analyzing performance and making informed decisions to protect your investment. This is the logical difference.
Preparing for 2026
The rental market doesn’t exist in a vacuum.
Broader macroeconomic factors will continue to shape the landscape in 2026, like:
- Supply: Despite record construction in some areas, new deliveries are slowing and many cities face zoning and development bottlenecks, contributing to the national housing shortage.
- Interest Rates: Elevated rates and tight lending will keep many potential homebuyers in the rental market.
- Home Prices: Historically high home prices continue to make renting a more accessible option and push demand for well-priced rentals in good neighborhoods.
- Economic Conditions: High inflation, a slowdown in job growth, and continued geopolitical turmoil all add extra layers of uncertainty.
You can’t control the Fed or what happens in Congress, but you can control your end of the business by:
- Reducing Overhead: Implement smart maintenance schedules and use automation tools like ShowMojo to streamline showings and reduce administrative costs.
- Focusing on Tenant Retention: A vacancy can cost up to $5,000 between lost rent, turnover costs, and marketing. Providing excellent service and responsive communication is the best way to keep good tenants and protect your cash flow.
- Being Agile and Data-Driven: The market is changing fast. Working with a property manager who meticulously tracks data and uses it to make logical decisions is your greatest advantage. You need a partner who monitors web views, showing requests, and application rates to recommend strategic adjustments, whether it’s a price change or an ad revision.
The rental market of 2026 will reward landlords who are proactive, data-informed, and focused on quality.
By implementing logical systems, keeping an eye on the metrics that matter, and giving genuine attention to current tenants, you can turn market volatility into opportunity.
Looking for a trusted property management partner who can help you navigate the complexities of the Detroit rental property market?
Get in touch for a free consultation with our team, who have more than 30 years’ experience investing in, managing, and flipping rental units in Metro Detroit.