National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Apartment Rents Grew in December 2025, Snapping Five-Month Losing Streak
U.S. apartment rents grew in December, with the national average increasing to $1,708, a +0.1% increase from November’s upwardly revised figure of $1,707, CoStar Group’s Apartments.com reported Friday. The uptick marks a reversal of the previous five consecutive months of flat or negative monthly rent change. Annual rent growth eased marginally to 0.66% in December 2025 from 0.74% in the prior month and down from +1.5% at the start of 2025.
Three of the four regions also snapped the downward trend that had persisted for the previous five months. The Midwest led with a +0.12% month-over-month increase, followed by the South, up +0.07%, and the Northeast, up +0.06%. The West continued to post rent declines, down -0.01%. On an annual basis, the Midwest posted the strongest performance with +2.2% growth, followed by the Northeast at +1.5%. The South’s rents declined -0.1% year-over-year, while the West declined -1.4%.
Metro-level performance improved across the U.S., with 25 of the top 50 markets posting monthly rent increases, up from just seven in November. Rent growth leaders were San Francisco at +0.64%, Norfolk +0.53% and Richmond +0.42%. San Francisco also posted the strongest annual rent growth at 5.9%.
The monthly and annual results “reinforce the broader trends: markets with the highest levels of new construction are seeing the weakest rent performance, while more supply-constrained metros — particularly in the Midwest and select coastal areas — continue to outperform,” according to Apartments.com. “In select markets, however, falling employment and softening demand may also be contributing to weaker rent growth.”
- ◦Lease
