May 2025 U.S. Rental Market Report: 22nd Consecutive Month of Declines

In May 2025, the U.S. rental market recorded its 22nd consecutive month of year-over-year rent declines for studios, one-bedroom, and two-bedroom units—a trend not seen since 2020, according to Realtor.com's research. The national median asking rent stood at $1,705, which is $54 lower than its peak in August 2022, and just $5 higher than April’s figure. This gradual easing reflects a broader cooling of the rental market following the recent surge.

Rent declines were consistent across all unit sizes: studios fell 1.9% to $1,418, one-bedrooms dropped 2.3% to $1,582, and two-bedrooms slipped 1.7% to $1,896. While rents remain around 20% higher than pre-pandemic levels, they are now increasing at a slower rate than general inflation. Notably, metros like San Francisco, Minneapolis, and Denver saw softer rental growth, while affordability pressures eased slightly nationwide.

This prolonged pullback is tied to rising rental inventory—driven by steady multifamily construction—and reduced demand in some markets, offering renters more negotiating power and prompting landlords to reassess pricing and value propositions. However, underlying inflationary and macroeconomic factors may soon counterbalance the trend, raising questions about whether the market has bottomed.

For landlords, the message is clear: retention and marketing efforts must take priority. As the market stabilizes, proactive strategies—like updating units, offering lease flexibility, and negotiating competitively—will be crucial to keeping occupancy high and revenue stable. Those who adapt to this slow-growth environment by enhancing tenant experience are likely to maintain stronger returns.
https://www.realtor.com/research/may-2025-rent/