CHESTER COUNTY, PA — Chester County’s rental market closed 2025 moving against the national tide, with prices holding firm and affordability pressures intensifying even as much of the country saw easing rents.
In December, average rent across Chester County stabilized at about $2,161, up 3.8% from a year earlier. That growth stands in sharp contrast to the national picture, where asking rents declined for the 29th consecutive month year over year, according to the Realtor.com® December Rental Report. The national median rent across the 50 largest U.S. metropolitan areas fell 0.7% from December 2024 to $1,689, the smallest annual decline since March but still reflective of a prolonged cooling trend. The full report is available at https://www.realtor.com/research/december-2025-rent.
Local strength is being driven by persistent supply constraints and sustained demand. Chester County’s residential occupancy rate remains elevated at roughly 95.25%, leaving little slack in the market despite a modest recovery in active listings, which climbed to approximately 743 units by year-end. That limited inventory has kept competition intense for prospective tenants.
Rents vary widely by municipality. West Chester continues to sit near the county average, with typical rents around $2,055, while higher-income communities such as Malvern command averages ranging from roughly $2,230 to $2,253. Studio apartments remain the most accessible entry point, generally priced between $1,537 and $1,588, while three-bedroom units frequently exceed $2,600.
The local market’s resilience is underscored by a widening disconnect between private-market rents and federal affordability benchmarks. For 2025, the U.S. Department of Housing and Urban Development set Fair Market Rent estimates for Chester County at $1,645 for a one-bedroom unit and $1,963 for a two-bedroom unit, well below prevailing market rates.
That gap becomes more pronounced when rents are compared with income levels. Chester County is Pennsylvania’s wealthiest county, with a median household income of about $123,041. At that income level, the average rent of $2,161 consumes roughly 21% of gross monthly income, comfortably under the commonly cited 30% affordability threshold.
However, the countywide median masks the reality faced by the population most likely to rent. Data suggest the “housing wage” required to afford a modest two-bedroom apartment at Fair Market Rent levels is approximately $33.40 per hour, or about $69,480 annually. At actual market rents closer to $2,161, the income needed to avoid housing stress rises above $86,000 a year.
By comparison, service-sector and renter-heavy jobs in hubs such as West Chester often report average annual pay closer to $54,370. For those workers, housing costs can consume 40% to 50% of income, helping explain why nearly 27% of households in Chester County are now classified as cost-burdened.
National trends help frame the local divergence. Realtor.com® data show that while median rent nationally has risen 16.9% since December 2019, lower-priced rentals have increased even faster. The 25th percentile of asking rents has climbed 19.9% over that period, compared with just 12.5% growth at the 75th percentile. Since 2022, rent relief has been concentrated at the high end of the market, with higher-priced units posting larger declines, while lower-cost rentals have seen little easing.
That pattern helps explain why renters at the bottom of the market continue to struggle despite headlines pointing to falling national rents. In Chester County, where supply is tight and incomes are polarized, the compression seen nationally translates into sustained pressure on essential workers and single-income households, even as higher earners remain well positioned to absorb rising costs.
As 2026 begins, the county’s rental market appears stable but uneven, favoring established, higher-income households while leaving affordability challenges unresolved for the workforce that underpins the local economy.
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