National rent growth decelerates as supply pressures persist
ARLINGTON, Va.–(BUSINESS WIRE)–Second paragraph, fourth sentence of release should read: Annual rent growth slowed further to 0.8%, down from 0.9% in September and 1.5% at the start of the year. (instead of Annual rent growth slowed further to 0.8%, down from 0.9% in August and 1.5% at the start of the year.)
The updated release reads:
APARTMENTS.COM RELEASES MULTIFAMILY RENT GROWTH REPORT FOR OCTOBER 2025
National rent growth decelerates as supply pressures persist
Today Apartments.com, an industry-leading online marketplace of CoStar Group (NASDAQ: CSGP), published its latest report on multifamily rent trends for October 2025.
U.S. apartment rents declined in October, with the national average falling to $1,708 — a 0.3% decrease from September’s revised figure of $1,713. This marks the fourth consecutive month of flat or negative monthly rent change and the steepest October decline in over 15 years. Three of the five steepest monthly rent reductions over the past fifteen years have occurred within the last three months. Annual rent growth slowed further to 0.8%, down from 0.9% in September 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. Since 2022, elevated supply levels nationally have turned that deceleration into outright decline each fall. From 2010 through 2024 October rent change averaged 0.07%. In contrast, from 2022 through 2024 October rents averaged a 0.15% monthly decline. The slowdown this October, at more than twice this decline, signals a continuation of the more pronounced declines the apartment market has experienced since August and reinforces the broader trend of moderation in rent growth this year.
Although the national average remains above levels from a year ago, elevated supply pressures continue to weigh on rent growth momentum. While the market hasn’t entered a widespread downturn, the October data highlights the delicate balance of rent growth in the fourth quarter.
All regions posted rent declines in October. The West led with a -0.53 % month-over-month drop, followed by the South, down -0.28%, the Northeast, down -0.24 %, and the Midwest, down -0.18 %. On an annual basis, the Midwest posted the strongest performance with +2.2% growth, followed by the Northeast at +1.8%. The South’s rents were unchanged year over year, while the West declined -1.4 %.
Metro-level performance softened across the US, with only Las Vegas and Milwaukee posting monthly rent gains of +0.2%. Rents in Miami and Norfolk were unchanged.
The steepest monthly declines occurred in Denver, down -1.3%, followed by Austin at -1.1%, Seattle at -0.9%, and Salt Lake City and Phoenix at -0.8%. These Mountain West and Sun Belt markets continue to face elevated vacancy amid aggressive new supply, putting downward pressure on rents. In addition to supply-side challenges, demand-side factors may also be contributing to softness in Denver and Seattle. Amazon’s recent job cuts in Seattle, in particular, could be weighing on demand there.
San Francisco leads the nation with 5.8% annual rent growth, followed by San Jose at 3.8%, Chicago at 3.6%, and Norfolk at 3.0%. In contrast, Austin declined -4.6%, Denver -3.7%, and San Antonio fell -2.7%, all driven lower by oversupply outpacing demand.
These patterns reinforce the broader trends: markets with the highest levels of new construction are seeing the weakest rent performance, while more supply-constrained metros — particularly in the Midwest and select coastal areas — continue to outperform. In select markets, however, softening demand may also be contributing to weaker rent growth, particularly where major employers have announced layoffs or where economic momentum has slowed.
While many markets have moved past peak supply, a substantial inventory overhang continues to weigh on rent growth across the country.
About CoStar Group
CoStar Group (NASDAQ: CSGP) is a global leader in commercial real estate information, analytics, online marketplaces, and 3D digital twin technology. Founded in 1986, CoStar Group is dedicated to digitizing the world’s real estate, empowering all people to discover properties, insights, and connections that improve their businesses and lives.
CoStar Group’s major brands include CoStar, a leading global provider of commercial real estate data, analytics, and news; LoopNet, the most trafficked commercial real estate marketplace; Apartments.com, the leading platform for apartment rentals; Homes.com, the fastest-growing residential real estate marketplace; and Domain, one of Australia’s leading property marketplaces. CoStar Group’s industry-leading brands also include Matterport, a leading spatial data company whose platform turns buildings into data to make every space more valuable and accessible, STR, a global leader in hospitality data and benchmarking; Ten-X, an online platform for commercial real estate auctions and negotiated bids; and OnTheMarket, a leading residential property portal in the United Kingdom.
CoStar Group’s websites attracted over 143 million average monthly unique visitors in the third quarter of 2025, serving clients around the world. Headquartered in Arlington, Virginia, CoStar Group is committed to transforming the real estate industry through innovative technology and comprehensive market intelligence. From time to time, we plan to utilize our corporate website as a channel of distribution for material company information. For more information, visit CoStarGroup.com.
Contacts
Media Contact:
Matthew Blocher
Vice President, Corporate Marketing & Communications
CoStar Group
(202) 346-6775
[email protected]
