Key Takeaways:
- The national average rent in February 2025 was $1,559 per month, an increase of 1% year-over-year.
- New apartment construction has dropped by 45% overall, which could drive rent prices higher.
- The demand for apartments is at its highest point since 2022, partially due to renters choosing not to leave the rental market.
- The vacancy rate remained unchanged in February at 8.1%, indicating it may have peaked and could begin to fall.
In February, the national average rent was $1,559 per month for a one-bedroom apartment and $1,812 for a two-bedroom—marking a 1% increase compared to last year. While the vacancy rate is still hovering around 8.1% nationally, apartment demand is at its highest since 2022, partly due to fewer renters transitioning to homeownership.
In addition, most cities are experiencing a 45% drop in new apartments hitting the market, driven by a construction slowdown. However, there are notable exceptions. Rochester, New York, saw a 174% surge in new apartment construction compared to last year, according to a CoStar news report. Dayton, Ohio, follows closely with a 172% increase, and Cincinnati, Ohio, is up 77%. Interestingly, Ohio is the only state with two cities on this list.
Meanwhile, construction activity in the Sun Belt region has generally slowed, with a few exceptions. Birmingham, Alabama; New Orleans, Louisiana; and Miami, Florida have all seen increases in multi-family housing development.
Strongest Demand Is for Budget-Friendly Apartments
By the end of 2025, rent prices are expected to increase by 3%. However, the increase will vary significantly depending on the type of rental property.
Budget-friendly apartments, which are those averaging $1,337 per month in rent, have the strongest demand. These apartments have a low vacancy rate of 5.6%, which has pushed rents up by 2%, surpassing the national average.
Mid-priced apartments, which are apartments renting for an average of $1,596 per month, are also in high demand. Rent prices in this category have risen by 1.5% compared to last year, slightly above the national average. This increase reflects a growing demand that outpaces availability, with a vacancy rate of 7.4%.
The demand for luxury apartments, which average $2,155 per month, remains weak. These properties have a significantly higher vacancy rate of 11.3%. Despite this, rent prices for luxury apartments are up slightly, rising by 0.4%.
Construction Stalls as Renters Stay Put
The overall vacancy rate hasn’t changed since last month. It still sits at 8.1%, which could indicate that it has peaked.
The rate of homeownership in the US last year was 65.6%, the lowest rate in two years, according to the US Census Bureau. According to a study by Fannie Mae, the number of consumers who said they would buy a home when they moved decreased two percentage points month-over-month to 66%. However, those who stated they would continue to rent was unchanged at 32%.
With fewer renters transitioning to homeownership, coupled with the decrease in construction, the vacancy rate is expected to fall this year, which could drive rent prices higher.
Cities with the Biggest Rent Increases
In January, Providence, Rhode Island topped the list of cities with the largest rent increases at 3.9%. Providence was followed Rochester, New York; Grand Rapids, Michigan; Omaha, Nebraska; and Kansas City, Missouri. February looks much the same, aside from Kansas City falling off the list and Rochester overtaking Providence, which dropped to third.
For February 2025, here are the cities with biggest rent increases:
- Rochester, NY (+3.6%)
- Grand Rapids, MI (+3.5%)
- Providence, RI (+3.5%)
- Omaha, NE (+3.4%)
- Dayton, OH (+3.2%)
Cities with the Biggest Rent Declines
For the ninth month in a row, Austin has topped the list of the cities with the largest rent declines. Austin’s average rent is currently $1,437 per month, which is 8% lower than the national average. Austin, which saw rent prices soar during the pandemic, have seen a slow but steady decline since.
While a couple of cities switched places in February, the list remains basically the same as last month. Denver, still following closely behind Austin, saw rent prices fall -3.2% last month. Huntsville was third at -3%, Colorado Springs at -2.4%, and Phoenix rounded out the list last month at -1.8%.
For February 2025, here are the five cities with the biggest rent declines:
- Austin, TX (-4.3%)
- Denver, CO (-3.4%)
- Colorado Springs (-2.8%)
- Huntsville, AL (-2.7%)
- Phoenix, AZ (-1.9%)
Current Rent Prices Across the US
|
City |
Current Average Rent |
Last Month’s Average Rent |
Year-Over-Year Difference |
|
$2,387 |
$2,377 |
+3.9% |
|
|
$1,602 |
$1,594 |
-1.6% |
|
|
$1,437 |
$1,438 |
-4.6% |
|
|
$3,427 |
$3,405 |
+1.4% |
|
|
$1,628 |
$1,624 |
+0.9% |
|
|
$2,864 |
$2,831 |
+1.5% |
|
|
$1,787 |
$1,775 |
+1.2% |
|
|
$1,486 |
$1,472 |
-0.6% |
|
|
$1,900 |
$1,873 |
+2.5% |
|
|
$1,094 |
$1,086 |
+1.7% |
|
|
$1,299 |
$1,306 |
-3.6% |
|
|
$1,147 |
$1,138 |
+2.2% |
|
|
$1,409 |
$1,389 |
-0.8% |
|
|
$1,653 |
$1,649 |
-4.7% |
|
|
$2,234 |
$2,235 |
-0.4% |
|
|
$1,281 |
$1,268 |
-0.7% |
|
|
$3,774 |
$3,719 |
+3% |
|
|
$1,673 |
$1,670 |
+0.9% |
|
|
$1,199 |
$1,197 |
+0.3% |
|
|
$1,109 |
$1,100 |
+2.5% |
|
|
$2,877 |
$2,901 |
+1.8% |
|
|
$1,317 |
$1,310 |
0% |
|
|
$3,161 |
$3,103 |
+2% |
|
|
$1,182 |
$1,169 |
+2% |
|
|
$1,307 |
$1,301 |
+0.2% |
|
|
$1,767 |
$1,760 |
+0.9% |
|
|
$2,166 |
$2,157 |
-0.1% |
|
|
$1,440 |
$1,434 |
+2.3% |
|
|
$2,161 |
$2,153 |
+1.6% |
|
|
$1,160 |
$1,159 |
+1.3% |
|
|
$1,363 |
$1,363 |
+0.1% |
|
|
$1,682 |
$1,671 |
-0.2% |
|
|
$3,935 |
$3,890 |
+2.2% |
|
|
$1,587 |
$1,583 |
-0.1% |
|
|
$1,717 |
$1,706 |
-0.3% |
|
|
$1,335 |
$1,334 |
-1.7% |
|
|
$1,332 |
$1,322 |
+2.2% |
|
|
$1,507 |
$1,497 |
-0.4% |
|
|
$3,267 |
$3,128 |
+2.1% |
|
|
$1,371 |
$1,367 |
-1.8% |
|
|
$1,385 |
$1,376 |
+2% |
|
|
$1,553 |
$1,545 |
+0.5% |
|
|
$1,106 |
$1,101 |
+2.3% |
|
|
$1,105 |
$1,100 |
-1.9% |
|
|
$2,346 |
$2,349 |
+0.5% |
|
|
$2,969 |
$2,923 |
+2.6% |
|
|
$2,598 |
$2,587 |
+1.8% |
|
|
$2,071 |
$2,066 |
+1.3% |
|
|
$1,658 |
$1,657 |
+0.8% |
|
|
$2,307 |
$2,303 |
+1.4% |
How Current Rent Prices Impact Renters
If you’re a renter who is weighing the move to homeownership, it helps to know what the conditions are in your market. In Austin, for example, rent prices are -8% lower than the national average, but the price of a house is 2% higher than the national average at $509,301.
Denver rent prices have also fallen, but they are still 6% higher than the national average at $1,653 per month. In Denver, the average house costs $651,950, which is 31% higher than the national average.
And while Rochester rent prices are up, they’re still -20% below the national average at $1,251 per month. The average home in Rochester is 1% higher than the national average at $505,012.
Grand Rapids, Michigan, where rent prices are up year-over-year, is still 15% below the national average, with rent prices averaging $1,325 per month. However, buying a home in Grand Rapids is also more affordable, costing -10% less than the national average.
Learn more about what you can expect by comparing the rent prices from this report to those from December and January to determine the overall trend and visit the US Rent Trends page to view the most current rent prices available across the US based on CoStar data.
Methodology:
The rent data in this report is sourced from CoStar Group’s Market Trend reports. CoStar group is the leading authority in commercial real estate information, analytics, and news, trusted by real estate professionals for more than 37 years. By combining this data with Apartments.com internal data and public record, we’re able to deliver the most up-to-date rental information available.
To determine overall rent trends, we evaluate rent prices from more than 2,400 cities across the nation, including the top 80 national markets. This analysis includes year-over-year and month-over-month rent changes to provide a comprehensive view of market dynamics.
FAQs
What is the average rent in the US right now?
The average rent as of February 2025 is $1,559 per month, according to Apartments.com. This is an increase of +0.9% over last year.
Which states had the largest rent increases in February 2025?
The states with the largest rent increases in February 2025 are Rhode Island, Delaware, and Virginia. Rhode Island and Delaware both saw a 4% rent increase over last year. Virginia was close behind with rent prices increasing by 3.8%.
Are rent prices rising or falling in the US?
The average rent in the US is up slightly at 0.9% year-over-year.
Which states have the cheapest rent right now?
The states with the cheapest rent prices are Oklahoma, West Virginia, and Arkansas. Renters in Oklahoma pay the least amount in rent at $890; however, that's an increase of 2.5% over last year. Rent prices in West Virginia currently average $923 per month, which is up by 2.6% over last year. At $925 per month, Arkansas renters are paying 2.3% more than last year.
