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 Bucks Trend with Double‑Digit Gains
Key takeaway: Rental costs across the United States have been flat or slipping for a third straight month, while San Francisco stands out with strong, double‑digit increases in both one‑ and two‑bedroom rents.
Nationwide picture
A national rental data report covering 100 U.S. cities shows the median price for a one‑bedroom rental held steady at $1,517 in September 2025, while the median two‑bedroom rent edged down to $1,894, a monthly drop of 0.2 percent. Overall, rents are down about 1% year‑over‑year.
This cooling follows a period of rapid rent growth in 2023, when inflation pushed rents up as much as 8 percent year‑over‑year. Early in 2025 rents were still rising modestly, between 1 and 2 percent, before the trend shifted in June.
Housing market context
At the same time, median home prices rose by about 2% year‑over‑year to $422,600 in September 2025, marking the 26th consecutive month of year‑over‑year increases in home values. That split — slowing rents but rising home prices — reflects different forces on the rental and for‑sale sides of the market.
Why rents are cooling
Analysis in the rental report points to three main reasons for the national rental slowdown: a sluggish job market, broader worries about the economy that make renters cautious, and a large increase in new apartment supply after a record construction boom last year. The report projects that new apartment completions nationwide will top 500,000 units by the end of 2025.
Markets that added the most new apartments tended to see the largest rent drops. Regions with especially heavy delivery in 2025 include the Mountain states and the Sunbelt, with notable activity in cities such as Salt Lake City, Denver and several Texas and Florida metros. A major coastal city in Florida alone is expected to deliver roughly 15,666 new units by January, a surge tied to nearly a 10 percent year‑over‑year rent decline there.
City‑level swings: sharp falls and sharp rises
The report shows wide variation across cities. More than 70 of the 100 tracked cities saw flat or falling rents. Some of the largest drops for one‑bedroom averages were observed in midsize and smaller cities, including a nearly 18% decline in one Tennessee market and declines greater than 12% in several Midwestern cities.
At the other end, a handful of places are posting strong gains. A New Jersey city led the list for one‑bedroom growth with a rise of about 16% to $1,800, and a western New York city has seen rents climb more than 12% since last September.
San Francisco: an outlier with steep gains
Unlike most U.S. cities, San Francisco is seeing big rent increases. The average one‑bedroom rent in the city is now about $3,510, surpassing the pre‑pandemic benchmark of $3,500. Two‑bedrooms have crossed the $5,000 mark for the first time in the available series of data.
Year‑over‑year growth in San Francisco is strong: one‑bedrooms are up roughly 13% and two‑bedrooms about 16%. Several neighborhoods show even larger jumps, with some areas rising more than 20% year‑over‑year.
Local demand pressures there include rapid growth in tech hiring tied to artificial intelligence, renewed workplace attendance rules that encourage people to live closer to offices, and a revived appetite for urban living. At the same time, the city faces a long supply shortfall after decades of limited building: independent housing data indicates the city remains roughly 140,000 homes short of long‑run needs, and proposed local zoning changes aim to allow tens of thousands of new units by 2031 to address that gap.
Market dynamics and outlook
Where the largest apartment deliveries occurred, rents have behaved as expected and fallen. Where construction has been scarce, rents are rising or staying firm. Analysts expect the current cooling to continue through the winter months, though not necessarily to last forever; labor market shifts and economic sentiment will also play major roles.
The rental data reviewed comes from a firm that analyzed 100 U.S. cities and tracked city‑level changes, and other housing research groups also highlight the same broad patterns: a recent surge in apartment supply in many markets, coupled with spotty demand, is easing rent pressure nationwide even as some high‑demand, low‑supply cities push rents higher.
Method notes
Figures cited here are median rent levels and year‑over‑year percent changes produced by a national rental tracker that reviewed 100 cities. New‑apartment delivery projections reflect expected completions through the end of 2025. Home price change is based on a widely used median sales price measure for September 2025.
FAQ
Q: Are rents falling everywhere in the U.S.?
A: No. While national medians are flat or slightly down and more than 70 of 100 tracked cities show flat or falling rents, several cities — notably San Francisco and a handful of other markets — are seeing strong rent growth.
Q: Why are rents cooling in many cities?
A: Three main factors are slowing rents: a weaker labor market, broader economic caution among renters, and a large recent increase in apartment supply after a construction boom.
Q: Is housing getting cheaper to buy, too?
A: Home prices rose modestly year‑over‑year to about $422,600 in September 2025, so prices remain elevated on the for‑sale side even as rents ease in many areas.
Q: Will San Francisco rents keep rising?
A: San Francisco faces strong demand from tech sector hiring and return‑to‑office policies and has limited near‑term new supply. That mix suggests upward pressure on rents may continue until significant new housing comes online.
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Quick reference — key figures
| Feature | National | San Francisco |
|---|---|---|
| Median one‑bedroom rent (Sept 2025) | $1,517 (stable) | $3,510 (above pre‑pandemic peak) |
| Median two‑bedroom rent (Sept 2025) | $1,894 (down 0.2% month) | $5,000+ (first time in series) |
| Year‑over‑year rent change | -1% | +13% to +16% (varies by bedroom) |
| New apartment deliveries (projected 2025) | Over 500,000 units nationwide | Low near‑term pipeline; zoning proposals aim to add 36,200 units by 2031 |
| Median home price (Sept 2025) | $422,600 (up 2% yoy) | Local market remains supply constrained |
Data note: Median rent and home price figures reflect a national rental tracker and commonly used median sale price measures for September 2025. City‑level changes are drawn from a 100‑city review of rental markets and related housing data and projections for apartment completions in 2025.
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 NY News
NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at constructionnynews.com, your go-to source for actionable local news and information in New York 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 New York Build Expo, infrastructure breakthroughs, and cutting-edge construction technology showcases. Our coverage extends to key organizations like the Associated General Contractors of New York State and the Building Trades Employers' Association, plus leading businesses in construction and real estate that power the local economy such as Turner Construction Company and CMiC Global. As part of the broader network, including constructioncanews.com, constructiontxnews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.
