United States, September 29, 2025
News Summary
Rents have cooled across much of the country as a large wave of new apartment supply and softer demand ease upward pressure on prices. The national median one-bedroom holds near $1,517 while two-bedrooms sit near $1,894, leaving overall rents about 1% below year-ago levels. At the same time median home prices continue modest gains, complicating the rent-versus-buy decision for many households. Markets with heavy new deliveries show the biggest declines, while a major West Coast tech city stands out with double-digit rent growth driven by strong hiring and constrained new construction.
Rents Flat or Falling Nationwide for Third Month; San Francisco Sees Double‑Digit Gains
Key takeaway: National rental prices have stalled or edged down for the third consecutive month, while a handful of cities — led by San Francisco — are posting sharp year‑over‑year gains.
Top-line numbers
In September 2025 the nationwide median monthly rent for a one‑bedroom remained at $1,517, while the nationwide median for a two‑bedroom slipped 0.2% to $1,894. Overall, rents are down about 1% year‑over‑year. At the same time, median home sale prices rose roughly 2% year‑over‑year to $422,600, marking the 26th straight month of annual home‑price increases.
What’s driving the national trend
Analysts point to three main forces behind the rental cooling: a sluggish labor market, broad economic worries among households, and a large wave of newly delivered apartments that has created a temporary supply surplus. New apartment construction is on track to top 500,000 units nationwide by the end of 2025, and markets that received the biggest deliveries tended to show the largest rent drops.
Cities showing the steepest declines
Some of the largest year‑over‑year rent drops were concentrated in markets with heavy new supply. Notable declines include:
- Knoxville, TN: one‑bedroom rents down nearly 18%.
- Cleveland, OH: rents down more than 12%.
- Detroit, MI: rents down more than 12%.
- Des Moines, IA: rents down more than 12%.
- Miami, FL: rents down almost 10% amid large recent deliveries, with roughly 15,666 new units expected to be delivered by January in that metro.
Where rents are rising
While most cities are flat or falling, several metros posted strong increases. Examples include:
- Newark, NJ: one‑bedrooms up about 16% to $1,800.
- Buffalo, NY: rents up more than 12% year‑over‑year.
San Francisco bucking the national trend
San Francisco stands out for sharp rent growth. One‑bedroom units now average about $3,510, pushing past the pre‑pandemic benchmark. Two‑bedrooms have crossed the $5,000 mark for the first time in the data series. Annual increases in San Francisco are in the low to mid‑teens percentage range for both one‑ and two‑bedrooms, and several neighborhoods show even larger gains — for example, Mission Bay and Hayes Valley recorded double‑digit year‑over‑year increases.
Why San Francisco is different
Local demand factors underpinning San Francisco’s surge include rapid job growth in certain tech sectors, renewed office attendance expectations, and stronger appetite for core‑city living. Analysts say these demand forces are colliding with a constrained supply pipeline: building permits and active construction are unusually low, so little new residential inventory is expected to come online over the next two or more years. That mismatch helps explain reports of aggressive renter bidding in the city.
Short‑term outlook
Experts do not expect the cooling in the broader market to be permanent. Current forecasts point to the rental moderation persisting at least through the winter months as supply additions continue to outweigh near‑term demand growth. Local pockets of strong rent growth, especially where job demand is concentrated and supply is limited, are likely to keep diverging from the national picture.
Context and longer history
For perspective, inflation pushed rental growth up as much as about 8% year‑over‑year in the first half of 2023. Rents eased to rising only 1% to 2% in early 2025 before the recent downward shift that began around June. A separate housing analysis from earlier in the year found that renting remained cheaper than buying in hundreds of U.S. cities, underlining how local housing markets continue to vary widely.
What this means for developers, landlords and renters
Developers in high‑delivery markets may face pressure on asking rents until some of the recent supply is absorbed. Landlords in cities with weak demand may need to offer concessions or adjust pricing to maintain occupancy. Renters in many metros are beginning to see more choice and softer price pressure, while renters in a few high‑demand, constrained‑supply cities remain exposed to sharp price increases.
FAQ
Are rents falling across the entire country?
Rents are flat or down in most cities, with nationwide medians showing a small year‑over‑year decline. However, several large and mid‑sized metros still show significant rent increases.
Why are some cities experiencing big rent drops?
Markets with the largest drops recently are those that received the biggest wave of new apartment deliveries. A large influx of new units has increased available inventory faster than demand in those metros.
Why is San Francisco seeing big rent growth?
San Francisco’s rent surge is driven by concentrated job growth in certain tech sectors, renewed requirements for in‑office work, and limited new housing supply. Those demand and supply dynamics are producing outsized rent growth compared with the national trend.
Will the rental cooling continue?
Analysts expect the cooling to persist through the winter months, though it may not be permanent. Markets with tight supply and strong job growth could continue to see rent increases.
Is new construction still happening?
Yes. Nationwide new apartment construction is high, with total deliveries on track to top 500,000 units by the end of 2025. Supply growth is concentrated in several regions, including Mountain and Sunbelt metros.
{
“@context”: “https://schema.org”,
“@type”: “FAQPage”,
“mainEntity”: [
{
“@type”: “Question”,
“name”: “Are rents falling across the entire country?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Rents are flat or down in most cities, with nationwide medians showing a small year-over-year decline. However, several large and mid-sized metros still show significant rent increases.”
}
},
{
“@type”: “Question”,
“name”: “Why are some cities experiencing big rent drops?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Markets with the largest drops recently are those that received the biggest wave of new apartment deliveries. A large influx of new units has increased available inventory faster than demand in those metros.”
}
},
{
“@type”: “Question”,
“name”: “Why is San Francisco seeing big rent growth?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “San Francisco’s rent surge is driven by concentrated job growth in certain tech sectors, renewed requirements for in-office work, and limited new housing supply, producing outsized rent growth compared with the national trend.”
}
},
{
“@type”: “Question”,
“name”: “Will the rental cooling continue?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Analysts expect the cooling to persist through the winter months, though it may not be permanent. Markets with tight supply and strong job growth could continue to see rent increases.”
}
},
{
“@type”: “Question”,
“name”: “Is new construction still happening?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Yes. Nationwide new apartment construction is high, with total deliveries on track to top 500,000 units by the end of 2025. Supply growth is concentrated in several regions, including Mountain and Sunbelt metros.”
}
}
]
}
Key figures at a glance
| Metric | Value | Notes |
|---|---|---|
| Median 1‑bedroom rent (national) | $1,517 | September 2025 median |
| Median 2‑bedroom rent (national) | $1,894 | Down 0.2% in September 2025 |
| Nationwide rent change | -1% YoY | Year‑over‑year comparison |
| Median home price | $422,600 | Up ~2% YoY; 26th consecutive month of increases |
| Projected new apartments (2025) | 500,000+ units | Nationwide deliveries by year end |
| San Francisco 1‑bed avg | $3,510 | Among the highest in the country; double‑digit annual growth |
| San Francisco 2‑bed avg | $5,000+ | First time over $5,000 in the available data series |
| Example sharp declines | Knoxville: -18% | One‑bedroom average change year‑over‑year |
Deeper Dive: News & Info About This Topic
Additional Resources
- SF Standard: SF real estate affordability increases, bucking trend
- Wikipedia: Housing in San Francisco
- KTVU: SF rental prices — Zumper
- Google Search: San Francisco rental prices 2025
- San Francisco Chronicle: Apartment rent trends in SF
- Google Scholar: San Francisco rents 2025
- SFGate: San Francisco neighborhood rent surge
- Encyclopedia Britannica: San Francisco rental market
- Axios: San Francisco AI hiring and rent spike
- Google News: San Francisco AI hiring rent spike
Author: Construction CA News
CALIFORNIA STAFF WRITER The CALIFORNIA STAFF WRITER represents the experienced team at constructioncanews.com, your go-to source for actionable local news and information in California and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Rose Parade, Coachella, Comic-Con, and the California State Fair. Our coverage extends to key organizations like the California Building Industry Association and Associated General Contractors of California, plus leading businesses in technology and entertainment that power the local economy such as Apple and Alphabet. As part of the broader network, including constructionnynews.com, constructiontxnews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic landscape across multiple states.
