Notable Trends
- Zumper’s National Rent Index reveals rent growth leveling off at a time of year when it typically accelerates: the national median rent for one-bedroom units held steady at $1,520 this month, while two-bedrooms ticked up 0.2% to $1,910. On an annual basis, one-bedroom rent dipped 0.4%, marking the first year-over-year decline in 14 months.
- San Francisco recorded the second-highest annual rent growth rate in the country, up 12.5%.
- New York City’s monthly rent prices saw a slight decline following the enactment of the FARE Act this June.
- High-supplied Sun Belt markets continue to post negative annual rent growth, but the rate of decline is tapering, pointing to early signs of stabilization.
As we reach the halfway point of 2025, several key trends have emerged in the national rental landscape. Most notably, there is a surprising flattening of national rents during peak moving season. At the same time, supply-constrained urban markets like New York City and San Francisco continue to see strong upward pressure on rents. Additionally in New York, policy shifts such as the FARE Act, which transfers broker fee responsibilities from renters to property owners, will reshape pricing dynamics and renter behavior. Meanwhile, high-supplied Sun Belt markets like Austin and Phoenix are still seeing year-over-year rent decreases, a lingering effect of the recent construction boom that continues to outpace absorption in that region. However, stabilization may be on the horizon as the pace of declines in that area have been slowing.
National rent index reveals surprising flattening during peak moving season
Zumper’s latest National Rent Index shows that rent growth is leveling off at a time of year when it typically accelerates. In June, the national median rent for one-bedroom units held steady at $1,520, while two-bedrooms ticked up just 0.2% to $1,910. On an annual basis, one-bedroom rent dipped 0.4%, marking the first year-over-year decline in 14 months, while two-bedrooms rose a modest 0.5%.
This softening trend signals that the market may be entering a new phase of stabilization. While demand remains solid, occupancy rates are steady and retention rates are high, suggesting that property owners are likely prioritizing lease renewals over pricing power. Additionally, the wave of new apartment completions continues to disperse demand across a larger number of units, making the leasing environment more competitive.
“The current plateau seen in our national rent prices likely reflects a more deliberate and strategic approach by property owners,” explains Anthemos Georgiades, CEO of Zumper. “This isn’t a sign of weak demand, renters are still out there, but with so much new inventory on the market, landlords are prioritizing occupancy and staying competitive in an increasingly crowded landscape.”
The most recent CPI data revealed that the shelter index is up 3.8% since last May. To dive deeper into how Zumper’s national rent data provides insights to where the CPI is heading, please go to our blog post here: https://www.zumperrentals.com/blog/zumper-consumer-price-index/
NYC & SF rents continue to buck national trends
New York City and San Francisco continue to defy national rent trends, with one-bedroom prices rising 6.3% and 12.5% year-over-year, respectively. Notably, San Francisco recorded the second-highest annual rent growth rate in the country this June, signaling a strong recovery from its pandemic-era downswing.
San Francisco’s median one-bedroom rent now sits at $3,330, which is the first time it has surpassed the $3,300 mark since May 2020. Compared to its post-pandemic low of $2,600 in April 2021, rent is up 28%. This growth reflects a convergence of factors: constrained supply, a tech-sector resurgence that is calling many renters who may have previously left the Bay Area to return, and increasing competition as we enter the summer months.
Meanwhile, New York City’s one-bedroom rent currently stands at $4,570, just shy of the record high of $4,640 set in April of this year. Rent in the city has nearly doubled, up 94%, since its pandemic low of $2,350 in January 2021. The sustained surge is fueled by limited supply, persistent post-pandemic demand, and aggressive competition for available units.
Adding a new layer to the New York City rental landscape is the implementation of the FARE Act, which prohibits brokers from charging renters a fee when representing a landlord. While some property owners may raise asking rents to offset these costs, market competition appears to be keeping increases in check for now. In fact, rents for both one and two-bedroom units in our report edged down slightly this month, suggesting that reduced upfront costs and improved transparency could prompt more renters to enter the market or relocate, ultimately enhancing inventory turnover and availability.
Zumper’s Chief Revenue Officer, Shawn Mullahy, who was previously a principal broker in New York, said this: “The FARE Act will push many NYC landlords to explore self-serve leasing models—relying more on internal teams, referrals, and digital platforms to fill vacancies without broker involvement. At the same time, it’s likely to trigger downward pressure on existing broker fees as landlords absorb new costs and shift advertising budgets. This regulation isn’t just a pricing change—it’s a catalyst for leaner leasing operations, more direct landlord-tenant engagement, and a rebalancing of broker economics in the city’s rental ecosystem.”
Zumper will continue to track rent trends in NYC to assess the longer-term impacts of this policy change.
Pace of rent declines in Sun Belt cities slowing
High-supplied Sun Belt markets continue to post negative annual rent growth, but the pace of those declines are slowing, an early sign of stabilization on the horizon. Among major cities in the region, Phoenix led the pack with rent down over 5% year-over-year, followed by Nashville down 4.7%, and then Miami, Austin, and Atlanta, all down roughly 3%. These rent declines reflect the record-breaking surge in new construction across the region, which has created a renter-friendly environment where properties compete aggressively for tenants through generous concessions that range from multiple months of free rent to waived parking fees and security deposits. However, today’s softer declines are a marked improvement from last year. Austin, for example, saw rent down 10% year-over-year in early 2024, signaling that while prices may currently remain in the red, demand is gradually catching up to supply. This trend suggests that many of these markets are already in the early stages of rebalancing. With new construction starts falling sharply this year, and demand remaining strong, many Sun Belt markets are expected to re-stabilize by late 2025 or early 2026 after absorbing the current oversupply.
About
The Zumper National Rent Report analyzes rental data from over a million active listings across the country. Listings are then aggregated on a monthly basis to calculate median asking rents for the top 100 most populous cities, providing a comprehensive view of the current state of the market. The report is based on all data available in the month of publication. Any data that is reported does not include short term listings. View our full methodology here.
To keep up to date with the latest rent trends or company news, like or follow Zumper on Facebook, Bluesky, X, and Instagram. In the market for a new place? Search apartments for rent on Zumper.
