The median U.S. asking rent rose 2.6% ($45) year over year to $1,790 in August—the largest increase since December 2022. It’s now just $70 below the record high hit in the summer of 2022.
August marked the third-consecutive month of year-over-year increases following roughly two years of declining or flat rents. On a month-over-month basis, the median asking rent rose 0.3% in August.
This is based on an analysis of median asking rents for units in U.S. buildings with 25+ units. Data cover rolling three-month periods; this report focuses on the three months ending Aug. 31, 2025, which we refer to as “August.” Rents are rising because demand is strong—in part due to high homebuying costs—and supply is cooling.
The number of new apartments being completed fell to a seasonally adjusted annual rate of 385,000 in July—the most recent month for which data are available. That’s down 45.4% from an August 2024 peak of 705,000 in the wake of the pandemic building boom. Permits to build apartments are also falling, down more than 20% since the pandemic construction boom, according to a separate report last month.
In many parts of the country, renters have been having success asking for concessions like free parking or reduced rent, but those perks may dry up as supply slows.
