Apartments.com Reports Multifamily Rent Growth Trends for September 2025

In a recent press release, Apartments.com, a subsidiary of CoStar Group (NASDAQ: CSGP), unveiled its Multifamily Rent Growth Report for September 2025. The report highlights a notable decline in U.S. apartment rents, with the national average falling to $1,712 — a decrease of 0.3% from August’s revised figure of $1,717. This downward trend marks the third consecutive month of flat or negative rent changes and represents the steepest decline observed in September in over 15 years.

Annual rent growth has slowed further to just 0.9%, down from 1.0% in August and significantly lower than the 1.5% recorded at the beginning of the year. This slowing growth reflects a broader trend of moderation within the multifamily rental market. Traditionally, rent growth follows a predictable seasonal pattern, with increases in the spring and declines in late summer and fall. However, the current year-over-year slowdown indicates a more pronounced softening, suggesting that this year's pullback exceeds typical seasonal adjustments.

Despite the national average still being above levels from a year ago, sustained supply pressures continue to challenge rent growth. While the market has not entered a widespread downturn, the data for September underscores the precarious balance of rental growth as Q4 approaches.

The report indicates that all regions experienced rent declines in September. The West led the way with a 0.5% drop, followed by the South at -0.4%, the Northeast at -0.2%, and the Midwest at -0.1%. On an annual basis, the Midwest showcased the strongest performance with a 2.4% growth rate, while the Northeast followed at 1.9%. The South saw a minor increase of 0.1%, whereas the West experienced a significant decline of 1.3%.

Metro-level performance also reflected this trend, with only Milwaukee (+0.1%) and Cleveland (+0.02%) showing slight monthly rent gains. Conversely, the steepest monthly declines were recorded in Denver (-1.3%), Raleigh (-1.2%), San Antonio (-0.9%), and Salt Lake City (-0.8%). These regions, particularly in the Mountain West and Sun Belt areas, are grappling with high vacancy rates due to aggressive new supply, putting additional pressure on rents.

While many markets are experiencing downward pressure, certain metropolitan areas are still demonstrating resilience. San Francisco leads the nation with an impressive 6.1% annual rent growth, followed by San Jose and Chicago, both at 3.8%, and Norfolk at 3.1%. In stark contrast, Austin has seen a decline of 4.4%, Denver a dip of 3.8%, and both Phoenix and San Antonio down by 2.9%. These declines are primarily attributed to an oversupply of rental units exceeding existing demand.

The patterns emerging from this report further reinforce the broader trend: markets characterized by high levels of new construction are witnessing the weakest rent performances, while those with constrained supply—especially in the Midwest and select coastal areas—continue to outperform.

Although many markets seem to be moving beyond peak supply, a significant inventory overhang still looms large, continuing to impact rent growth across the nation. As the multifamily rental market adjusts to these dynamics, stakeholders will need to remain vigilant in monitoring trends and shifts in consumer demand.

Apartments.com remains committed to providing comprehensive insights into the multifamily rental landscape, equipping both landlords and renters with the data needed to navigate this evolving market. As the fourth quarter begins, the industry will be watching closely to see how these trends develop and what they may mean for the future of rental growth.