U.S. Apartment Rents Decline for First Time in Eight Months: Report

Apartment rents in the U.S. declined slightly over the summer, particularly in August, but continue to grow on an annual basis, according to research from CoStar Group’s Apartments.com.

The national average monthly rent fell 0.03 percent to $1,751 in August, a $1 decline from July’s upwardly revised level of $1,752, according to the data, ending a run of eight consecutive months of rent increases.

“While apartment rent growth typically slows in the late summer leasing season, the 0.03 percent month-over-month decline recorded in August continues the recent pattern of late-summer rent decreases observed since 2024,” the report notes. 

But this August’s monthly decline was still “considerably milder” than the declines of 0.1 percent in August 2024 and 0.2 percent in August 2025, according to the report, suggesting an “improvement in pricing conditions.”

Still, rent growth around the country continues to climb on average despite elevated supply levels constraining pricing momentum, the report said. The Pacific Northwest and the Midwest led the charge in August, with both regions seeing the strongest year-over-year rent growth at 2.2 percent each. The Northeast’s 2 percent rise followed close behind. 

Overall, 12 of the top 50 markets posted month-over-month rent increases in August, while seven markets showed no change and 31 recorded declines. Some markets in California saw healthy monthly rent growth, with Orange County’s average rents up 0.6 percent, San Francisco at a 0.4 percent rise, East Bay rising 0.3 percent, and San Jose’s up 0.2 percent (the same as Chicago). 

On an annual basis, however, San Francisco was the standout, with an 11.9 percent year-over-year rent increase. San Jose came in second with a 7.7 percent rise. 

“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,”  the report 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.”

Amanda Schiavo can be reached at aschiavo@commercialobserver.com.