Rent Growth Slows In July 2025 As US Market Levels Off

Rent growth stalled in July 2025, with US averages flat at $1,717 as supply pressures and cooling demand weigh on the market.

August 11, 2025

Jordan B.

US national average rent stayed at $1,717 in July 2025, with month-over-month growth at -0.03% — the sixth consecutive month of flat or negative change.
Midwest and Northeast regions continue to post steady gains, while the South and West lag due to high new supply and weaker demand.
San Francisco led national rent growth at +0.43% month-over-month and +5.3% year-over-year, while Austin saw the steepest annual drop at -4.3%.

Key Takeaways

The July 2025 Multifamily Rent Growth Report shows US rent growth has essentially stalled, reports Apartments.com. The national average rent held steady at $1,717 from June, while annual growth slowed to 1.1%, down from 1.5% at the start of the year. It marks the sixth straight month of flat or negative monthly change.

A Cooling Trend

The slowdown hasn’t tipped into a broad decline, but the trajectory since January remains downward. Supply pressures — particularly in fast-growing Sun Belt markets — and softer demand are tempering growth. Despite the moderation, rents remain slightly above last year’s levels.

Combination chart tracking U.S. national apartment rent growth from July 2024 to July 2025. Annual growth falls from 1.6% to 1.1%, with monthly change near zero for much of 2025.

Regional Breakdown

Performance is split across regions. The Midwest led in July with a 0.06% monthly gain and 2.6% annual growth, followed by the Northeast at +0.03% month-over-month and +2.2% year-over-year. The South dipped -0.08% for the month but remains up 0.3% annually. The West posted the weakest showing, falling -0.22% month-over-month and -1.1% annually, as new construction continues to outpace demand.

Two bar charts showing regional apartment rent growth in July 2025. Midwest and Northeast post gains both month-over-month and year-over-year, while South and West show weaker or negative growth.

Market Highlights

San Francisco was July’s biggest mover, posting a +0.43% monthly increase. It also recorded the highest annual gain in the nation at +5.3%. Chicago followed with +3.8% year-over-year growth, while San Jose saw a +3.2% increase. Norfolk and Pittsburgh both registered gains of +2.7%. On the downside, Las Vegas saw the steepest monthly drop at -0.60%, while Austin posted the largest yearly decline at -4.3%.

Bar chart of month-over-month apartment rent growth for major US markets in July 2025. San Francisco tops at +0.4%, followed by Orange County and Oklahoma City (+0.4%), while Las Vegas records the steepest drop at -0.6%.

Bar chart showing year-over-year apartment rent growth for the 50 largest US markets in July 2025. San Francisco leads with +5.3%, followed by Chicago (+3.8%) and San Jose (+3.2%), while Austin posts the largest decline at -4.3%.

Why It Matters

The data underscores a widening divide between regions with limited new supply and those facing a construction glut. Markets with the weakest rent change are often those with the highest vacancy rates and robust development pipelines.

What’s Next

August’s numbers will be a key indicator of whether the market is stabilizing or continuing to soften, especially in coastal cities and Sun Belt metros under supply pressure. With seasonal demand set to fade in the fall, the outlook for Q4 remains cautious.