U.S. Asking Rents Continue to Decline: A June 2025 Market Analysis

The U.S. rental market is cooling, with the national median asking rent declining for the fourth consecutive month. In June 2025, rents fell 0.5% year-over-year to $1,642, according to a major market analysis. This trend is largely driven by a significant increase in apartment construction, which has created a surplus of supply and given renters more negotiating power in many major metropolitan areas.

Why Are U.S. Rents Falling?

The primary driver behind the modest but steady decline in asking rents is a fundamental shift in supply and demand. U.S. apartment construction is currently near a 50-year high, leading to a high number of vacant units. Based on our experience assessment, when there are more available apartments than tenants seeking them, landlords must compete to attract renters, often by lowering prices or offering concessions.

This follows a period of extreme volatility during the pandemic. "Renters have the upper hand—at least for now—because there are a near-record number of apartments coming on the market that landlords are scrambling to lease," explained a senior economist with the analysis firm. This environment may allow renters to negotiate for discounted rent, flexible leases, or other perks, though this dynamic could shift if construction slows as expected.

Which Metro Areas Saw the Biggest Rent Changes?

The rental market varies significantly by location. An analysis of 44 major U.S. metropolitan areas found that asking rents fell in 23 of them in June.

• Metros with the Largest Declines: The most significant year-over-year decreases were seen in Minneapolis (-5.8%), Austin, TX (-5.7%), and Las Vegas (-4%). In Austin, the median asking rent dropped to $1,379, its lowest level in over four years. This is partly due to an exceptionally strong pandemic-era building boom in the city, which has led to soaring vacancy rates.
• Metros with Rising Rents: Conversely, rents increased most in Cincinnati (+6.2%), St. Louis (+4.3%), and Pittsburgh (+3.7%). These areas generally have lower-than-average levels of new apartment construction, which helps to keep prices buoyant.

How Did Rents Vary by Apartment Size?

The decline in rents was not uniform across all types of rental units. The data shows that two-bedroom apartments posted the most substantial rent decline, falling 1.5% year-over-year to a median of $1,713 in June. In contrast, asking rents for both smaller (0-1 bedroom) and larger (3+ bedroom) units remained relatively stable compared to the previous year.

Key Takeaways for Renters and Landlords

The current rental market presents a clear, data-driven landscape for both tenants and property owners. Renters in markets with high construction activity now have increased leverage. It is a favorable time to compare multiple listings and potentially negotiate better terms. For landlords, effective marketing and competitive pricing are essential to attract tenants in a softening market. While the national median rent is still only $63 below its August 2022 peak, the recent trend suggests a period of stabilization and increased choice for tenants across the United States.