After relentless rent increases across the country, prices appear to be easing. Apartment rents declined in August, with the national average falling to $1,713 — a 0.23% decrease from July’s revised rent of $1,719.
This is the second straight month of flat or negative monthly rent change and the first time since January that the national average has declined by more than 20 basis points. Annual rent growth slowed further to 1%, down from 1.1% in July and 1.5% at the start of the year.
Apartment rent growth typically follows a seasonal pattern, with acceleration in the spring and a slowdown in late summer and fall. While month-over-month declines are expected during this period, the recent year-over-year slowdown — which adjusts for seasonality — signals a more pronounced softening in the market.
Notably, the decline in rents from their peak through August 2025 is sharper than in 2024, both in absolute dollars and in percentage terms. This underscores the fact that this year’s pullback exceeds typical seasonal patterns and reinforces the broader trend of moderation in rent growth.
Although the national average remains above levels from a year ago, elevated supply pressures continue to weigh on rent growth momentum.
All regions posted rent declines in August, a shift from July when the Midwest and Northeast still showed modest gains. The West led the pullback with a -0.5% month-over-month decline, followed by the South at -0.4%. The Midwest and Northeast also turned negative, down -0.2% and -0.1%, respectively. On an annual basis, the Midwest (2.5%) and Northeast (2.2%) remain the strongest-performing regions, while the West is now down -1.3% year-over-year.
Metro-level performance softened seasonally, with only a handful of markets posting positive rent growth in August. San Francisco led all markets with a +0.6% month-over-month increase, followed by California’s Orange County (+0.3%), and Northern New Jersey (+0.1%). These gains were largely concentrated in coastal and gateway markets, many of which have seen limited new supply.
At the other end of the spectrum, Richmond, Va., posted the steepest monthly decline at -1.1%, followed by Austin (-1.1%), Las Vegas (-1.0%), and San Antonio (-0.9%). These Sun Belt markets continue to face elevated vacancy and aggressive new supply, which is putting downward pressure on rents.
Year-over-year trends also reflect this divide. San Francisco leads the nation with 6.2% annual rent growth, followed by Chicago (3.9%), San Jose (3.5%), and New York (2.8%). Meanwhile, Austin (-4.7%), Denver (-3.5%), and Phoenix (-3.1%) remain the weakest performers, with continued declines driven by oversupply outstripping very strong demand.
