In April 2025, the U.S. rental market continued its gradual coolingo ffering modest relief for many renters even as challenges remain. According to Realtor.com’s April 2025 Rental Report, asking rents for 0–2 bedroom units in the 50 largest metropolitan areas have declined year over year for 21 consecutive months.
Below is a more detailed, expanded analysis of the trends, underlying forces, and implications gleaned from the report and what to watch going forward.
1. National Trends at a Glance
A. Rent Levels & Year-Over-Year Changes
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The median asking rent across 0–2 bedroom units in the top 50 metros in April 2025 was $1,699. This is up $5 from March (a modest seasonal uptick), but still $60 below its August 2022 peak.
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By unit size:
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Studio: $1,410 (–1.9% year over year)
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1-Bedroom: $1,578 (–1.9% YoY)
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2-Bedroom: $1,887 (–1.7% YoY)
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All unit types posted declines. Smaller units (studios, 1-bedrooms) saw slightly larger dips.
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The drop in asking rents has persisted for 21 straight months, a streak reflecting structural shifts rather than temporary blips.
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That said, even after declines, median rents remain well above pre-pandemic levels. The report notes that compared to 2019, rents are still elevated by roughly 20.8% nationally across 0–2 bedroom units.
B. Affordability & Rent Burden
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In April 2025, renters earning the median household income for the top 50 metros would spend 23.4% of their income on rent. This is down from 24.7% in April 2024.
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The so-called “30% rule” (i.e. housing costs consuming no more than 30% of gross income) is commonly used as a rough affordability benchmark. Under this lens, many renters are seeing a bit more breathing room.
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But not everywhere is comfortable. Five metros in the 50 tracked had rent burdens exceeding 30% of income: Miami, New York, Los Angeles, Boston, and San Diego.
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Miami was the least affordable, with renters spending nearly 37.9% of income on rent in April 2025.
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On the more affordable side, Oklahoma City was a standout: the median rent represented just 16.7% of local median household income, or only 55.6% of the estimated maximum affordable rent under the 30% rule.
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A few metros saw improvements in affordability year over year. In particular, Western and Sun Belt metros like San Diego, Denver, and Phoenix have begun closing the gap.
C. Vacancy, New Supply, and Market Softening
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The national rental vacancy rate in Q1 2025 was ~7.1%, the highest since 2018 Q3.
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This rise in vacancy is partly thanks to new multifamily inventory coming online, which is easing pricing pressures in many markets
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The relatively modest month-to-month rent increase in April (just +$5) suggests weaker demand relative to past springs. In prior years, spring rent increases were more robust.
Taken together, these signals point to a market where supply is catching up with or even starting to outpace demand in many metros.
2. Regional & Metro Highlights
Coastal / High-Cost Metros
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Though still among the least affordable markets, cities like Miami, Los Angeles, New York, Boston, and San Diego are seeing slight improvements in rent burden. The rent share in all five declined compared to April 2024.
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For example, in Miami, the median rent-to-income ratio dropped by about 3.1 percentage points year over year.
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However, given the high baseline, even small improvements leave many renters in stretched conditions.
More Affordable / Middle Markets
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Oklahoma City continues to shine as one of the most affordable large metros, with renters spending a relatively low share of income.
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Other metros like Austin, Columbus, Raleigh, and Minneapolis also rank among the more affordable markets, with rent shares of income hovering in the high teens.
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Most metros are seeing rental affordability either stabilizing or improving modestly, especially where supply is robust and demand is moderate.
Notable Exceptions & Warnings
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Kansas City stands out as a rare negative case: it’s the only metro in the set where the rent share of income actually increased year over year (to 20.7%) though even this is still under the 30% mark.
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In some markets, supply growth is not uniform; local constraints zoning, permitting, land costs may limit how much new inventory enters, leaving pockets of tightness even amid broader softness.
3. What’s Driving These Trends
New Multifamily Supply & Vacancy Pressures
One of the most consistent themes: increased construction of multifamily housing is putting downward pressure on rents. In many markets, new developments are coming online faster than absorption by tenants, pushing vacancy rates higher and giving renters more choice.
In some metros, this influx of supply has flipped leverage back to renters landlords may find less room to push aggressive rent hikes without risking longer vacancy or turnover.
Seasonal & Cyclical Patterns
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Spring tends to bring upward momentum in rents as demand grows (e.g. tenants moving, leases renewing). But 2025’s spring increase (just +$5) was more modest than in prior years, signaling lower appetite or slower absorption.
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As the year proceeds, seasonal cooling (late summer into fall and winter) could further temper rent growth or contribute to small declines, especially in oversupplied markets.
Macro & Cost Pressures
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Broader economic factors inflation, interest rates, and construction costs also play a role. Rising costs of construction materials, labor, or regulatory delays can choke off new supply, which in turn can support rents.
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In fact, uncertainty about tariffs (steel, aluminum) has been flagged by analysts as a risk that could slow construction and potentially reverse downward rent trends. (While not in the April report itself, this is a relevant external pressure.)
Homebuying Constraints & Tenant Demand
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High mortgage rates and affordability pressures in the for-sale housing market may push more households into renting rather than buying, especially first-time buyers. This can sustain demand for rentals even in a softening market.
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That said, if the price gap between renting and buying narrows (or if owning becomes more attractive again), some demand could shift back toward home purchases.
4. Implications & Recommendations
For Renters
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Negotiate where possible. In weaker markets or in buildings with higher vacancy, landlords might be more open to concessions (rent discounts, move-in credits, waived fees).
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Time your lease. If your lease is up in a few months, you’re in a good position to shop around; waiting or renewing early could reduce your leverage.
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Watch new inventory. Arrival of new complexes or units can shift market dynamics quickly especially in mid-size markets.
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Consider mobility. In metros with improving affordability, you may find better value by relocating within a metro or to a different metro altogether.
For Landlords & Property Investors
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Focus on tenant retention, amenities, and service. In a softer market, differentiating your property (maintenance, upgrades, responsiveness) can help reduce turnover.
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Be cautious about aggressive rent hikes if comparable properties are softer, pushing too far may backfire with vacant units.
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Monitor pipeline supply dynamics know how many new units are coming online in your metro or submarket.
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In markets where supply is stabilizing or future permitting is constrained, there may be room for more measured rent increases.
For Policymakers, Planners & Urban Leaders
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Supporting approval and permitting reforms can help ensure new housing supply keeps pace with demand.
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Prioritize affordable housing programs, especially in metros where rent burden remains high (> 30%).
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Monitor local rent and vacancy trends to anticipate affordable housing stress before it becomes acute.
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Encourage mixed-income development to help prevent displacement and preserve affordability.
5. What to Watch Going Forward
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Mid- to late-2025 rent data: Will the decline persist? Or will seasonal or demand-side pressures reintroduce upward rent push?
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Permitting and construction activity: If new multifamily development slows (due to cost, regulations, or finance hurdles), supply pressure may ease and allow rents to firm.
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Homeownership dynamics: If mortgage rates ease or housing becomes more affordable, some tenants may transition to buyers reducing rental demand.
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Local market divergence: Some metros may buck the national trend especially expensive coastal markets, or those with constrained land or rigid zoning.
6. Concluding Thoughts
The April 2025 data from Realtor.com reinforces a rental market that is softening but not collapsing. After 21 months of sustained year-over-year declines, renters are seeing pockets of relief, and affordability is incrementally improving in many areas.
But the story is nuanced. Coastal and high-cost metros remain stretched, albeit with some improvement. In middle- and lower-cost metros, renters may find more breathing room and better opportunities. The balance of power is shifting, but not uniformly.
At its core, the April report suggests this is a period of recalibration. Investors, landlords, and tenants should pay close attention to local conditions, pipeline supply, and demand shifts. The next chapters in 2025 will reveal whether this softness continues, becomes entrenched, or reverses.
Source / Reference:
“April 2025 Rental Report: Affordability Improves as Rents Continue To Decline” – Realtor.com https://www.realtor.com/research/april-2025-rent/