Median one-bedroom rents have increased 2.9% in the 12 months through February to reach $1,525 across the country. Among major markets, New York City has posted the highest prices for the category, at $4,330, according to the Zumper National Rent Index. San Francisco was the second-most expensive market for one-bedroom median rents at $3,140 and Jersey City, New Jersey, was third at $3,050.
New York City also was the most expensive market for two-bedroom rents at $5,500, representing an annual increase of 18.5%, according to Zumper’s data.
Nationwide, two-bedroom rents increased 3.7% to $1,905. The firm said despite acceleration in rents both monthly and annually, shelter inflation appears to be slowing, and the uptick in annual rent growth in the February national rent index suggests that the Federal Reserve may face greater inflationary challenges in implementing further rate cuts.
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Sun Belt markets showed some of the largest declines in annual rent changes but are showing signs of rent stabilization as they have either reached or are nearing their supply peak at a time when demand in the region remains strong. Durham, North Carolina, led the nation with the largest decline in one-bedroom rents – down 7.8% year-over-year. Nashville, Miami, Atlanta and Austin had annual one-bedroom rent declines of between 3.3% and 4.8%.
“While these markets continue to post negative annual rent growth, the declines have generally softened compared to last year, when some cities experienced double-digit drops,” said Zumper. “With fewer new developments on the horizon, the window of falling rents in many Sun Belt markets may be starting to close as we progress further into 2025.”
Outside of the Sun Belt, median one-bedroom apartment rents fell 5.2% in Chicago to $1,990 and 4.8% in Milwaukee to $1,000.
Meanwhile, the median one-bedroom rent increased the most in New Haven, Connecticut, from February 2024 to February 2025 to $2,240, up nearly 32%.
Rents also rose sharply in Lincoln and Omaha, Nebraska, both up more than 20%. Omaha emerged as one of the country’s most competitive rental markets last year driven by strong job growth and workforce development. New housing supply there has struggled to keep pace with demand as only about 2,000 units have been built in the city since 2020, said Zumper.
Similarly, a low cost of living and robust job growth in Lincoln have fueled its own rapid rent surge. Despite leading the country in annual rent increases, the city is significantly more affordable than most other markets. A one-bedroom apartment there averages about $990 per month.
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Kristen Smithberg
Kristen Smithberg is a Colorado-based freelance writer who covers commercial real estate, insurance, benefits and retirement topics for BenefitsPRO and other industry publications.
