U.S. Rent Trends 2025: A Shift from Declines to Stabilization

The era of significant rent declines is ending for most of the U.S., with the national median asking rent rising for the first time in six months. According to recent data, rents increased 0.4% year-over-year in February 2025 to $1,607, signaling a shift towards market equilibrium. This trend is primarily driven by a slowdown in new apartment construction, which is expected to tilt the balance towards landlords as early as next year, potentially leading to renewed rent growth and fewer concessions for tenants.

What Are the Current National Rent Trends?

After a period of volatility that included an 18% surge during the 2021 pandemic and a subsequent 4% drop in 2023, the U.S. rental market is now showing signs of stabilization. The median asking rent—the midpoint of advertised prices for new leases—reached $1,607 in February. This represents a 0.4% annual increase and a 0.6% monthly increase. The flattening of rents indicates that rental supply and demand are reaching a balance, a stark contrast to the large swings of previous years. A senior economist attributes this change to a strong, but now slowing, pace of apartment construction and sustained demand fueled by high home-buying costs.

Which Metros Saw the Largest Rent Changes in February 2025?

Rent trends varied significantly across the country, highlighting regional disparities in housing supply and demand. The most substantial declines were concentrated in markets that have experienced a high volume of new construction.

• Austin, TX: Rents fell 9.4% year-over-year to $1,404, the largest decline among major metros. This price is now 22% below its peak in August 2023.
• Salt Lake City, UT: Rents decreased by 7.8%.
• Jacksonville, FL: Rents dropped by 6.7%.

Conversely, rents rose most sharply in several Midwest and East Coast cities where housing supply has not kept up with demand.

• Cincinnati, OH: Rents increased 15.3%, the highest jump nationally.
• Providence, RI: Rents rose 12.4%.
• Baltimore, MD: Rents climbed 9.6%.

How Did Rents Change by Apartment Size?

The data reveals different trends based on the size of the rental unit, reflecting the varying demand from different tenant groups. The median asking rent for smaller apartments, which are typically more affordable, saw an uptick.

• Studio/1-Bedroom Apartments: The median rent rose 0.4% to $1,467, marking the first increase since June.
• 2-Bedroom Apartments: Rents increased 0.6% to $1,689.

In contrast, larger, more expensive units continued to see prices soften, though the rate of decline is slowing.

• 3+ Bedroom Apartments: The median rent fell 0.5% to $1,990. This was, however, the smallest decline recorded in months.

What Does This Mean for Renters and Landlords?

Based on the current assessment, renters should be aware that the window for negotiating rent concessions or finding move-in specials may be closing in many parts of the country. The slowdown in apartment construction is a critical factor to watch, as it could quickly shift the market advantage back to landlords. For those considering a move, acting sooner rather than later might be advantageous. Landlords, after a period of having to offer incentives to attract tenants, may soon find their pricing power returning, especially in markets with limited new supply. The key takeaway is that the national rental market is normalizing, moving away from the extreme volatility of recent years toward a more predictable, supply-driven environment.