U.S. Median Asking Rent Rises to $1,790: Key Trends and Metro-Level Insights for 2025

The median U.S. asking rent increased by 1.7% year-over-year to $1,790 in July 2025, marking the most significant annual gain since January 2023. This represents the second consecutive month of rising rents, a shift from over two years of declines or stagnation, according to a report from real estate brokerage Redfin. The primary driver appears to be a fundamental market change: shrinking apartment supply is now coinciding with growing renter demand, largely fueled by high homeownership costs. While rents are climbing, they remain $70 below the peak recorded in July 2022.

Why Are U.S. Rents Increasing Now?

The recent uptick in asking rents is primarily a story of shifting supply and demand. During the pandemic, a construction boom led to a surplus of new apartments, giving renters more leverage and leading to concessions like free parking or reduced rent. However, permits to build multifamily housing have fallen 23.1% since that peak. This slowdown in new construction, combined with high borrowing costs for builders, is now reducing supply. As Redfin Senior Economist Sheharyar Bokhari notes, this dynamic is "shifting the balance of power toward landlords," as a tighter market gives them less incentive to offer perks.

Which Metros Saw the Largest Rent Increases and Decreases?

The rental market varies dramatically by location. The largest increases were concentrated in major metropolitan areas, while several Sun Belt markets saw declines.

The metros with the biggest rent increases often correlate with a sharp decline in new apartment construction. For example, San Jose saw a 74.5% drop in multifamily building permits since the pandemic boom. Conversely, markets like Austin, Jacksonville, and Orlando, which are still permitting new housing at a high rate, are experiencing rent declines due to increased supply.

How Do Rent Trends Differ by Apartment Size?

The rental market's dynamics also differ by unit type. Smaller apartments are seeing the strongest demand growth.

• 0-1 Bedroom Apartments: The median asking rent rose 3.4% year-over-year to $1,650, the biggest increase for this category since September 2022.
• 2-Bedroom Apartments: Rents increased by 1.7% to $1,907.
• 3+ Bedroom Apartments: Rents fell by 1.5% to $2,192, the lowest level for this time of year since 2021. This suggests that affordability constraints are pushing more demand toward smaller, more affordable units.

What Does This Mean for Rental Affordability?

Despite the recent increases, there is a positive note for renters. The median asking rent is still $70 below its July 2022 peak of $1,860. Furthermore, wage growth has been outpacing rent growth, meaning that rental affordability, on a nationwide basis, is actually improving for many households. However, this trend is not uniform, and affordability pressures remain intense in high-cost coastal metros like San Jose.

For prospective renters, it is crucial to research local market conditions. Concessions may still be available in markets with high construction, but are likely drying up in supply-constrained areas. Monitoring local multifamily permit activity can provide insight into whether rental supply will increase in the coming years, potentially moderating future rent hikes.