Notable Trends
- Zumper’s National Rent Index revealed a slight monthly increase that is in line with typical seasonal trends: the median rent for one-bedroom units rose 0.2% to $1,520 while two-bedrooms climbed 0.3% to $1,907.
- San Francisco rent continues to inch closer to pre-pandemic levels, with the $3,300 mark not seen since May 2020.
- All Colorado cities featured in our report experienced declines in annual rent prices due to significant inventory expansion.
- Milwaukee’s one-bedroom rent is up 7.9% annually, credited to the city’s low volatility, steady demand, and constrained supply.
The return of renters to major metropolitan areas, seemingly a reversal of the early pandemic exodus, is reflected in the double-digit annual rent growth seen in the nation’s two most expensive markets. One-bedroom rent in New York City is up 10% year-over-year, while San Francisco has surged 11.9%, marking the second-highest growth rate in the country. San Francisco rent continues to inch closer to pre-pandemic levels, with the $3,300 mark not seen since May 2020.
Elsewhere in the top 10, Washington, D.C. rose one spot to become the eighth most expensive city, now tied with Los Angeles at $2,300 for a one-bedroom. Jersey City, by contrast, continues to see notable monthly declines, with both one and two-bedroom rents dropping by about 6%.
National rent index sees monthly uptick as we head into peak moving season
Zumper’s latest National Rent Index revealed a slight monthly increase, with the median rent for one-bedroom units rising 0.2% to $1,520 and two-bedrooms up 0.3% to $1,907. On an annual basis, the national one and two-bedroom rents are up 1.1% and 2.3%, respectively.
“As May marks the start of peak moving season, the uptick in our national rent prices aligns with typical seasonal trends,” said Zumper CEO Anthemos Georgiades. “With the surge in rental supply beginning to taper off and demand expected to remain strong, we anticipate continued upward pressure on prices in the coming months.”
The most recent CPI data revealed that the shelter index is up 4% since last April. To dive deeper into how Zumper’s monthly 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/
All Colorado cities in our report saw declining annual rent prices
All Colorado cities featured in our report experienced declines in annual rent prices. Leading the trend was Colorado Springs, where one-bedroom rent dropped by a notable 12.5%. Following closely behind was Aurora, with an 8.8% decline, and Denver, where rent fell by 5.5%. Despite its continued popularity among young renters, the Denver area has seen its rent prices dip as a result of a surge in construction activity. The Denver metro area added nearly 20,000 new apartments last year, which is near double the typical pace seen in recent years. Rental vacancy levels for Denver’s northeast area reached a regional high of 9.3%, up from 5.8%. And with another 15,000 new apartments expected to come online this year, Denver renters should expect to see continually declining rents and concessions, especially from new buildings. Some properties in Denver are already offering move-in specials that include up to 8 weeks of free rent and waived fees.
Milwaukee’s notable annual rent growth driven by low volatility, steady demand, and constrained supply
Milwaukee rent has been steadily climbing so far this year with one-bedroom rent rising 7.9% annually. The city stood out nationally in January with one of the five highest occupancy rates in the nation, at 95.8%, placing it alongside much larger markets like New York City and San Francisco. Like other Midwestern markets, Milwaukee has demonstrated remarkable stability in recent years. One-bedroom rent is now just $30 below the city’s pre-pandemic peak of $1,120 from February 2020, and rates have not dipped below $900 at any point in the past five years. In contrast, many cities on both coasts and across the Sun Belt have experienced much sharper rent swings over the same period. However, Milwaukee’s new apartment construction pipeline is projected to decline significantly this year, reaching its lowest level since 2015, with a 40% drop when compared to 2024. With low volatility, steady demand, and constrained supply, Milwaukee is positioned to remain a standout in the rental landscape in the months ahead.
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.
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