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U.S. Apartment Rent Growth Slows to 1.1% Year-Over-Year
U.S. apartment rent growth continued to slow throughout July, with the national average holding at $1,717, unchanged from June, CoStar Group’s Apartments.com reported Friday. The month-over-month change was a negligible -0.03%, marking the sixth consecutive month of flat or negative monthly growth. Annual rent growth has also slowed, from 1.5% in January 2025 to 1.1% in July 2025.
Although the market has not entered a broad decline, but the trajectory since January has been downward, reflecting persistent supply pressures and a cooling demand environment. However, the pace of moderation remains measured, and the national average is still above year-ago levels.
Regional performance remains uneven, with the Midwest and Northeast leading rent growth while the South and West lag. The Midwest led with a 0.06% month-over-month increase and 2.6% year-over-year growth. The Northeast also posted gains of 0.03% month-over-month and 2.2% Y-O-Y.
In contrast, the South slipped -0.08% month but is still up 0.3% Y-O-Y. The West declined -0.22% month-over-month and is now down -1.1% Y-O-Y. Elevated supply levels are a key driver of weak rent change in the South and West, where new deliveries continue to outpace demand in many metros.
As rent growth slows in several major markets, August data will be key to understanding whether the market is stabilizing or continuing to soften, according to Apartments.com. Key indicators to watch include performance in coastal cities and whether weakness in the Sun Belt continues.
Be there for insights from multifamily industry leaders on Sept. 11, when Connect Conferences will hold a nationwide in-person event. Register here for Connect Apartments 2025, taking place in Los Angeles at the Fairmont Century Plaza.
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