San Francisco Rent Growth Defies West Coast Trend

San Francisco rent growth leads July 2025 as tech demand and limited supply keep prices climbing despite West Coast market cooling.

August 15, 2025

Nina Dale

The national average rent hit $1,637 in July, up 0.9% from last year. Studio vacancies are set to drop by September.
San Francisco’s rent rose 0.4% due to a strong job market and return-to-office mandates.
Orange County rents increased 0.4% because of limited land for new housing.

Key Takeaways

According to Apartments.com, in July 2025, the national average rent rose to $1,637 per month, a 0.9% annual increase. Vacancy rates stayed at 8.1% overall. However, markets like San Francisco may feel extra pressure as studio vacancies are expected to fall sharply by early fall, which could push prices higher.

California’s Outliers

While most West Coast cities saw lower rents, San Francisco and Orange County went the other way. Both posted a 0.4% month-over-month increase.

In San Francisco, the average rent grew from $3,048 to $3,060 in just 30 days. This growth comes from a thriving tech industry and return-to-office mandates at major firms like Google and Uber. The city is now ranked fifth in the nation’s hottest rental markets for 2025.

Orange County’s rent increase has a different driver. The county is hemmed in by Los Angeles, state parks, and the Pacific Ocean. As a result, there is little space for new development. This scarcity continues to push prices higher despite the broader regional slowdown.

National Movers

Brookline, MA, had the largest year-over-year jump, with rents up 7.4%. Chicago followed at 5.4%, and Brooklyn at 4.3%.

By contrast, Florida’s Gulf Coast markets saw steep declines. Cape Coral rents fell 7%, with Sarasota, Naples, and Fort Myers also in the top five decreases. Colorado Springs joined the list for the first time since April.

Top five US cities with the largest year-over-year rent increases in July 2025, led by Brookline, MA at 7.4%.

Top five US cities with the largest year-over-year rent decreases in July 2025, led by Cape Coral, FL at -7%.

Why It Matters

Local factors can override national and regional trends. A strong job market or a shortage of land can keep rents high even when neighboring markets cool.

What’s Next

Studio vacancies are shrinking, and seasonal demand will slow after summer. Therefore, renters may find better deals in fall—except in hot spots like San Francisco and Orange County, where upward pressure is likely to continue.