U.S. Rental Market Trends: April 2025
Overview of Rental Trends
April 2025 has brought significant shifts in the U.S. rental market, marking 21 consecutive months of decline in year-over-year rents for 0-2 bedroom properties. The median asking rent across the 50 largest metropolitan areas stands at $1,699, reflecting a modest increase of $5 from March but down $60 from the peak in August 2022.
Year-over-Year Rent Decline
- In total, the asking rents declined by $29, or -1.7% year-over-year.
- Detailed Rent Changes:
- Studios: $1,410 (down $27, -1.9%)
- One-Bedroom Units: $1,578 (down $30, -1.9%)
- Two-Bedroom Units: $1,887 (down $32, -1.7%)
Improvements in Affordability
National Rent Affordability
As of April 2025, rental affordability has seen slight improvements compared to the previous year. Renters are now devoting 23.4% of their income to housing, down from 24.7% in April 2024.
- Top Metro Areas with rental burdens exceeding 30% of income include:
- Miami, FL
- New York, NY
- Los Angeles, CA
- Boston, MA
- San Diego, CA
Most and Least Affordable Cities
- Miami, FL remains the least affordable rental market, where median rent is 1.3 times higher than what is affordable based on median income.
- Conversely, Oklahoma City, OK ranks as the most affordable, with median rent at just 55.6% of its estimated maximum affordable rent.
Detailed Rental Data
Rent Declines Across Unit Sizes
In April 2025, all property sizes saw declines in median asking rents:
- Two-Bedroom Units: $1,887 (down 3.7% from August 2022 peak)
- One-Bedroom Units: $1,578 (down 4.8% from peak)
- Studios: $1,410 (down 5.2% from peak)
National Rental Vacancy Rate
Encouragingly, the national rental vacancy rate reached 7.1% in Q1 2025, the highest since Q3 2018. Increased vacancy rates are generally beneficial for prospective renters, leading to more competitive pricing.
Consumer Price Trends
Despite the ongoing decline, the median rent is still $293 (20.8%) higher than pre-pandemic levels in April 2019. This increase aligns closely with the overall consumer price changes, which have risen by 25.5% in six years.
The Cost of Housing Across Major Metros
Rental Burden Analysis
Using the 30% rule, households should ideally spend no more than 30% of their income on housing. For April 2025:
- Median household income for the top 50 metros is around $7,263.
- The corresponding maximum affordable rent is approximately $2,178, based on income projections.
Top 5 Most Costly Markets
| Rank | Metro | April 2025 Median Rent | Rent Share of Income | Increase from 2024 |
|---|---|---|---|---|
| 1 | Miami, FL | $2,345 | 37.9% | -3.1 ppt |
| 2 | New York, NY | $2,936 | 37.1% | -0.2 ppt |
| 3 | Los Angeles, CA | $2,712 | 35.6% | -1.9 ppt |
| 4 | Boston, MA | $2,968 | 32.6% | -0.4 ppt |
| 5 | San Diego, CA | $2,669 | 31.1% | -3.9 ppt |
The Most Affordable Markets
| Rank | Metro | April 2025 Median Rent | Rent Share of Income | Maximum Affordable Rent | Rent vs. Max Ratio |
|---|---|---|---|---|---|
| 1 | Oklahoma City, OK | $994 | 16.7% | $1,788 | 0.56 |
| 2 | Austin, TX | $1,470 | 17.2% | $2,560 | 0.57 |
| 3 | Columbus, OH | $1,210 | 18.0% | $2,012 | 0.60 |
| 4 | Raleigh, NC | $1,489 | 18.2% | $2,453 | 0.61 |
| 5 | Minneapolis, MN | $1,497 | 18.5% | $2,421 | 0.62 |
Conclusion: A Shifting Rental Landscape
The rental market in April 2025 reveals a complex landscape. While affordability in most markets is showing signs of improvement, major cities still struggle with high rental costs relative to income. A steady influx of new multifamily buildings has alleviated some pressure on the market, resulting in lower asking rents overall and increasing the vacancy rate, providing a glimmer of hope for future renters.
For homeowners and potential renters alike, understanding these trends is crucial for making informed decisions in today’s shifting rental landscape. For more insights on rental trends and housing data across the U.S., visit Realtor.com.