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.
Nationwide Rents Flat or Falling for Third Month; San Francisco Bucks Trend
Rental prices across the United States have either held steady or declined for a third straight month, according to a nationwide rental report from Zumper. The broad trend shows cooling demand and an expanding supply of apartments, even as a handful of cities post double‑digit rent gains.
Top-line numbers
In September 2025 the national median rent for a one‑bedroom stayed essentially unchanged at $1,517, while the median for a two‑bedroom eased by 0.2% to $1,894. Overall, rents are down about 1% year‑over‑year. By contrast, the median sale price for homes rose by 2% year‑over‑year to $422,600, marking the 26th consecutive month of year‑over‑year gains in home prices.
What is driving the national rental cooling?
The report identifies three main forces behind the rental slowdown: a sluggish labor market, persistent concerns about the broader economy, and a large influx of new apartment supply after a record construction boom. Nationally, new apartment construction is on track to exceed 500,000 units by the end of 2025, with heavy deliveries in the Mountain region and the Sunbelt, particularly in parts of Texas and Florida.
Where rents are falling fastest
More than 70 of the 100 cities reviewed in the report posted flat or lower rents. Some of the steepest declines were recorded in mid‑sized and Rust Belt markets: one‑bedroom rents in Knoxville fell nearly 18%, while Cleveland, Detroit and Des Moines each saw drops of over 12%. Markets that received the largest deliveries of new apartments tended to show the largest price declines.
Supply highlights and Miami example
Miami alone is expected to deliver about 15,666 new units by January, and the city has already seen nearly a 10% year‑over‑year decline in rents amid that surge in supply. Analysts say this pattern — big delivery schedules followed by price weakness — appears across many Sunbelt and Mountain markets.
San Francisco: a sharp exception
San Francisco stands out as a major outlier. One‑bedroom rents in the city average roughly $3,510, surpassing the pre‑pandemic benchmark. Two‑bedroom rents have crossed the $5,000 mark for the first time in the historical series used by the rental tracker. On a year‑over‑year basis, one‑bedrooms in San Francisco rose by about 13.3% and two‑bedrooms by roughly 16.3%. At the neighborhood level, some areas recorded very large gains: Mission Bay about +21.7%, Hayes Valley around +13.5%, SoMa about +11.4%, and Civic Center near +10.9%.
Local demand factors cited for the rapid rise in San Francisco rents include strong hiring in advanced technology sectors, stricter office attendance policies that boost the value of proximity, and renewed interest in urban living. On the supply side, building permits and active construction in the city have been low, limiting the ability of the market to absorb the resurgence in demand.
Other cities bucking or following the trend
Not all big cities move the same way. Some markets recorded substantial rent increases outside San Francisco: Newark saw a large climb in one‑bedroom rents to about $1,800, up roughly 16% year‑over‑year, while Buffalo posted gains north of 12% since the previous September.
Context and outlook
Rents rose sharply during 2021–2023, with inflation pushing annual increases as high as 8% in the first half of 2023. Early 2025 still showed modest rent growth of 1–2% before the cooling trend began in June. Analysts do not expect the rental slump to be permanent but anticipate that the downturn will likely continue through the winter months as new units come online and labor market worries persist.
Methodology note
The rental tracker reviewed rents in 100 U.S. cities and compared median asking prices for one‑ and two‑bedroom units across monthly and yearly intervals. City‑level differences reflect local job growth, supply deliveries, zoning and permitting trends, and landlord pricing strategies.
Bottom line for renters and builders
For renters: cooling national rents may translate into bargaining power in many cities, especially where new apartments have been delivered in bulk. For builders and policymakers: markets with acute demand — notably San Francisco — still need more housing, while markets that recently added many units are likely to face near‑term pricing pressure.
Frequently Asked Questions
Why are national rents cooling even though home prices are rising?
Rents are sensitive to job market strength and the pace of new apartment deliveries. A sluggish labor market and large deliveries of new units can push rents down even while home prices continue rising due to different buyer dynamics and limited for‑sale inventory.
Is this rental cooling uniform across the country?
No. Many cities show flat or falling rents, but some — notably San Francisco, Newark and Buffalo — have seen strong year‑over‑year gains. Local job growth, supply pipelines and housing policy explain much of the variation.
How long is the slowdown likely to last?
Analysts expect the cooling to persist at least through the winter as new apartments continue to come online, though it is not expected to be permanent. Market responses will vary by city.
What role does new construction play?
Large numbers of newly completed apartments, especially in the Sunbelt and Mountain regions, have increased supply and produced downward pressure on rents in those markets.
Why is San Francisco different?
San Francisco has seen renewed tech hiring and stronger office attendance, combined with a long‑running shortfall in housing supply. That mix has driven rents substantially higher despite the national trend.
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Key Features at a Glance
| Feature | Detail |
|---|---|
| National one‑bedroom median (Sep 2025) | $1,517 |
| National two‑bedroom median (Sep 2025) | $1,894 |
| Year‑over‑year rental change | -1% |
| New apartments projected (2025) | 500,000+ units nationally |
| Notable city with sharp gains | San Francisco — one‑beds ~ $3,510; two‑beds > $5,000 |
| Notable cities with steep declines | Knoxville, Cleveland, Detroit, Des Moines — declines >10% |
| Median home price (Sep 2025) | $422,600 (up 2% YoY) |
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 TX News
TEXAS STAFF WRITER The TEXAS STAFF WRITER represents the experienced team at constructiontxnews.com, your go-to source for actionable local news and information in Texas 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 Texas Construction Expo, major infrastructure unveilings, and advancements in construction technology showcases. Our coverage extends to key organizations like the Associated General Contractors of Texas and the Texas Building Branch, plus leading businesses in construction and real estate that power the local economy such as Austin Commercial and CMiC Global. As part of the broader network, including constructioncanews.com, constructionnynews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.
