AUSTIN, TX — While U.S. rents remain above pre-pandemic levels, their growth has fallen behind both overall inflation and rising home prices over the past six years, according to Realtor.com®’s May Rent Report. The median rent in May 2025 was $1,705, marking a 19.6% increase since 2019, compared to a 25.6% rise in consumer prices.
Cooling market-based rents signal potential relief for shelter inflation, which has been a significant driver of elevated consumer costs. “Falling median asking rents are an encouraging sign that relief is on the way for shelter inflation,” said Danielle Hale, chief economist at Realtor.com®. “While this is promising, rents remain considerably higher than before the pandemic, and despite 22 consecutive months of year-over-year declines, the median rent is just $54 below the August 2022 peak.”
Diverging Trends Across U.S. Metros
Rental growth trends reflect regional variations and specific economic factors. Major metros like San Francisco (-3.2%), Minneapolis (3.9%), and Seattle (7.9%) have seen rents grow at rates well below inflation since 2019. By contrast, metros such as New York, Miami, and Tampa experienced rent increases that outpaced inflation over the same period.
Policy shifts, including changes to international student visa rules and federal workforce adjustments, are reshaping demand in specific markets. Notably, student hubs like Miami (-2.7%), Seattle (-2.3%), and Boston (-0.4%) recorded year-over-year rent declines as international tenant demand softened. Similarly, federal employment trends played a mixed role in metros like Washington, D.C. (1.3%) and San Diego (-5.9%), reflecting the impact of job cuts and return-to-office mandates.
Broader Economic Impacts
Construction slowdowns linked to rising material costs, driven by doubled steel and aluminum tariffs, are expected to exert further pressure on rental affordability. Regions such as Milwaukee, Cleveland, and Memphis, which saw an increase in multifamily construction permits in 2024, have already reported declines or minimal growth in rents as of May 2025.
The report highlights the role of sustained cooling in rent growth, with forecasts suggesting further moderation of shelter inflation in the months ahead. However, affordability challenges persist for renters nationwide as the economic divide across regions widens.
Realtor.com’s data draws a complex picture of the rental market, emphasizing both opportunities for stabilization and ongoing struggles for affordability in the evolving U.S. housing landscape.
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