Multifamily Rent Growth Dips in August
(Photo credit: Mike Sorohan)
National monthly apartment rent growth turned slightly negative in August even as annual growth improved, according to a new report from Apartments.com, Arlington, Va.
The data firm’s Multifamily Rent Growth Report found the national average dipped 0.03% to $1,751 from July’s $1,752. “This slight decline ended the eight consecutive months of positive rent increases following a period of flat to declining monthly performance in the second half of 2025,” the report said. “On an annual basis, rent growth accelerated to 1.3% in August from the upwardly revised 1.1% in July and was up slightly from the 1.1% reading recorded one year earlier.”
While apartment rent growth typically slows in the late summer leasing season, the small month-over-month decline recorded in August continues the recent pattern of late-summer rent decreases observed since 2024. “However, this year’s pullback was considerably milder than the declines of 0.1% and 0.2% reported in August 2024 and August 2025, respectively, suggesting some improvement in pricing conditions,” the report said. “Annual rent growth continues to trend higher, though elevated supply levels remain a constraint on pricing momentum nationally.”
Regional rent growth was mixed in August. The Pacific region led on a monthly basis with a 0.1% increase. The other regions all posted declines: the Northeast down 0.02% and the Midwest down 0.03%. More significant declines were posted in the South and Mountain regions, both down 0.2%.
On an annual basis, regional performance also remained uneven. The Pacific and the Midwest recorded the strongest year-over-year rent growth, both up 2.2%, followed by the Northeast, up 2.0%. In contrast, rents declined by 0.1% year-over-year in the South and in the Mountain region by 0.5%. While still negative, both the South and Mountain regions have significantly trimmed their annual declines over the summer. Performance across Western markets continues to diverge, with supply-heavy Mountain metropolitan areas facing greater pressure than more supply-constrained Pacific markets.
At the metro level, rent growth was less widespread in August than in July, with 12 of the top 50 markets posting month-over-month increases, seven with unchanged rents and 31 recording declines. Orange County, Calif., led monthly rent growth with a 0.6% increase, followed by San Francisco at 0.4%, East Bay at 0.3% and San Jose and Chicago at 0.2%. Thirty-one major markets recorded monthly rent declines, led by Orlando and Denver with 0.7% dips with several others posting smaller decreases.
On an annual basis, San Francisco continued to outperform, posting 11.9% rent growth, followed by San Jose at 7.7%, Norfolk at 5.8% and East Bay at 5.1%.
“Regionally, the breadth of monthly rent growth narrowed in August, though year-over-year performance strengthened across all regions, continuing to vary widely and remaining closely tied to local supply conditions,” Apartments.com noted. “While most markets have moved past peak construction activity, a substantial, though gradually easing, inventory overhang continues to moderate rent growth nationally as the summer leasing season concludes.”
