**U.S. Apartment Rent Growth Slows to 1.1% Year-Over-Year**
U.S. apartment rent growth continued to decelerate in July, according to data from CoStar Group’s Apartments.com. The national average rent held steady at $1,717, unchanged from June, with a minimal month-over-month shift of -0.03%. This marks the sixth consecutive month of either flat or negative monthly growth. On a year-over-year basis, rent growth slowed to 1.1% in July, down from 1.5% in January 2025.
While the market has not experienced a widespread decline, rent trends have been consistently tapering since the beginning of the year. This downward trend reflects an increasing supply of new units meeting a demand that appears to be softening. Despite this, the national average rent remains higher than it was a year ago.
Regional disparities remain notable. The Midwest and Northeast continue to lead in rent growth, while the South and West show signs of weakening. The Midwest posted a modest 0.06% month-over-month increase and a stronger 2.6% year-over-year gain. Similarly, the Northeast recorded a 0.03% rise from June and 2.2% growth compared to July 2024.
In contrast, rents in the South declined 0.08% month-over-month, though they remain slightly up by 0.3% compared to last year. The West experienced the largest decline, with a 0.22% drop in July and a 1.1% decrease year-over-year.
Industry analysts attribute the sluggish rent growth in the South and West to high levels of new apartment deliveries outpacing demand in several metropolitan areas.
Looking ahead, August data will be critical in determining whether the rental market is beginning to stabilize or continuing to soften. Particular attention will be paid to trends in coastal cities and the performance of Sun Belt markets.
