Metro Standouts Drive Gains as Most Cities See Apartment Rents Fall
Apartment rental trends across the United States are increasingly defined by local divergence, as new figures for July 2025 show contrasting performances among the nation’s largest multifamily markets. More than half of the 50 biggest apartment markets recorded month-over-month rent declines according to the latest report from Apartments.com, underscoring how national averages mask significant variability at the metro level.
A closer look at the data reveals a handful of cities bucking the broader downward trend. San Francisco led the nation in monthly rent growth, posting a 0.43% increase in July, with Orange County following at 0.40%. Other notable performers included Oklahoma City, Norfolk, and St. Louis, which gained 0.37%, 0.30%, and 0.29% respectively over the previous month. Over the past year, San Francisco distinguished itself once again, delivering the highest annual rent growth at 5.3%, while Chicago achieved 3.8%. San Jose marked a 3.2% annual rise, and Norfolk and Pittsburgh both posted gains of 2.7%.
On the other hand, several metros recorded considerably weaker results. Las Vegas experienced the sharpest monthly decrease, with rents falling 0.60% in July. Tucson and San Antonio also saw notable drops of 0.51% and 0.46%. Rents in Tampa and Phoenix declined by 0.44% over the same period. Looking at annual changes, Austin led in year-over-year declines at 4.3%, with Denver, Phoenix, San Antonio, and Tucson also posting substantial drops, ranging from 1.8% to 3.5%.
These figures depict a multifamily housing sector more fragmented than unified, with metropolitan areas responding differently to local supply and demand shifts. While markets like San Francisco and Chicago continue to show resilience, others—particularly in the Sun Belt—face headwinds from elevated inventory and lingering vacancy rates. The variability in performance reflects how specific market dynamics, such as new apartment deliveries and regional economic conditions, are shaping rent movement. As seasonal demand softens and persistent supply pressures remain, this local divergence is expected to be an increasingly important theme for the multifamily sector through the remainder of the year.
Source: GlobeSt/ALM