U.S. Apartment Rents Rise for Seventh Straight Month as Rental Market Shows Signs of Recovery

U.S. apartment rents continued to edge higher in August, offering fresh signs that the rental market may finally be stabilizing after several years of declines.

The national median apartment rent increased 0.1% from July to $1,390, marking the seventh consecutive monthly increase, according to Apartment List. August also recorded the first month-over-month rent increase for the month since 2022.

Despite the recent gains, rents remain 0.8% below their level a year ago. The year-over-year decline, however, has been narrowing, suggesting that the prolonged period of falling rents could be approaching an end.

Rental prices experienced their sharpest decline in April as demand weakened amid economic uncertainty and concerns about the job market. Since then, improving demand and a gradual reduction in available inventory have helped support prices.

Apartment List’s national vacancy index fell for a sixth consecutive month to 7.1% in August. Although vacancies remain relatively high compared with recent years, the decline represents an important shift after vacancy rates had risen steadily since 2021.

A major factor behind the rental market’s earlier weakness was a surge in new apartment construction. More than 600,000 multifamily units were completed in 2024, the largest annual increase in new supply since 1986, according to Apartment List. The influx of apartments gave renters more choices while putting downward pressure on rents.

The market is now beginning to absorb much of that excess supply. Apartment List chief economist Chris Salviati said the latest figures indicate that the rental market could be “turning the corner,” with apartment occupancy and rent growth showing signs of improvement at the same time.

The recovery is not uniform across the country. Rents remain lower than a year ago in much of the South and Mountain West, while the Northeast, Midwest and parts of the West Coast are seeing stronger price growth.

San Francisco and San Jose recorded some of the strongest rent increases, along with Virginia Beach and Milwaukee. San Antonio, Las Vegas and Denver experienced some of the largest declines.

The latest data suggest that while renters are still benefiting from relatively elevated supply in many markets, the balance between apartments available and demand is gradually shifting. If the trend continues, the national rental market could enter a more stable phase after years of volatility.