Apartment rent growth is slowing at a time when it typically experiences a seasonal acceleration. Apartment List’s national rent index increased by 0.4% in May, compared with 0.5% in April and 0.6% in March.
“These differences are minor in dollar terms, but they do indicate softness in the market, possibly signaling a slowdown in demand due to declining consumer confidence amid a more uncertain macroeconomic outlook,” the rental marketplace explained.
Year-over-year rent growth fell 0.5% after nearing positive territory during the past six months. According to Apartment List's June 2025 National Rent Report, the national median monthly payment now stands at $1,398, up $5 per month compared to last month, but down $6 compared to May 2024.
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The national vacancy rate stands at 7%, a new record high for the monthly data series that dates back to 2017. Multifamily occupancy has slowly but consistently been easing for more than three years, thanks to a wave of new inventory. And while construction has peaked, new supply remains robust this year, said Apartment List.
Meanwhile, 69 of the nation’s top 100 largest cities saw payments increase in May, and rent growth is now positive on a year-over-year basis for 54 of the top 100 markets. Still, metros that have increased their multifamily inventory rapidly continue to see fairly steep year-over-year declines in rent growth, including in Austin, Denver and Phoenix, where rent growth declined 6.3%, 4.8% and 3.1%, respectively.
At the other end, Fresno, California, currently has the nation’s fastest rent growth, with a 5.9% increase over the past year, and is the only large metro to see a rise by more than five percent year-over-year. San Francisco ranks second with a 4.4% year-over-year increase. Northeast and Midwest markets, including Providence, Rhode Island, Hartford, Connecticut, Chicago and Pittsburgh, also were among the top ten markets for rent growth in May.
As the number of new units continues to decline, Apartment List said it expects the rental market to tighten and positive rent growth to return overall nationally.
The median list-to-lease time was 28 days in May, down from 30 days in March and 37 days in January. This is in line with seasonal norms, according to Apartment List.
“Units are currently sitting vacant just one day longer than they were at this time last year, but are still sitting for eight days longer than they were in mid-2022 when the market was at its tightest,” said the report. “The influx of new supply has resulted not only in a growing number of vacant units, but also in an increase in the length of time those units remain unoccupied.”
In Austin, the nation’s softest rental market, units leased in May had been listed for a median of 38 days, the report found.
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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.
