As 2025 unfolds, the U.S. rental market is undergoing a dramatic transformation. After a brief period of stabilization during and after the pandemic, rent prices are once again surging and this time, the sharpest increases aren’t in the usual coastal hotspots. Instead, the steepest spikes are hitting cities in the Midwest and Rust Belt, where demand has exploded, and supply struggles to keep up.
The Top Cities for Rent Increases in 2025
According to data from Realtor.com, highlighted in CNBC’s recent coverage, these five metro areas are experiencing the fastest-growing rents in the country:
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Cincinnati, Ohio – 10.9% year-over-year increase
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Indianapolis, Indiana – 9.6% increase
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Milwaukee, Wisconsin – 7.8% increase
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Chicago, Illinois – 6.8% increase
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St. Louis, Missouri – 6.5% increase
These are substantial hikes especially in cities traditionally known for more affordable housing compared to New York or San Francisco. What’s driving the growth? A convergence of post-pandemic migration trends, limited new construction, and increased demand from renters priced out of other markets.
What’s Causing the Rent Rebound?
Several factors are converging to push rents higher across these metro areas:
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Urban Revival: As remote work shifts to hybrid models, more professionals are returning to city centers. This renewed interest in urban living has driven up demand, especially in neighborhoods with walkability and amenities.
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Housing Shortage: Supply remains constrained. New construction hasn’t kept pace with demand, especially in the affordable and mid-tier rental segments. This imbalance is leading landlords to raise prices on available units.
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Migration from High-Cost Cities: With cities like New York and Los Angeles remaining costly, many renters have moved to cities like Indianapolis or Cincinnati, drawn by their lower baseline rents and growing job markets.
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Inflation & Cost Pressures: Property owners are also facing rising costs from insurance to maintenance to property taxes. Some of these expenses are being passed on to tenants.
What Renters Should Know and Do
If you’re a renter in one of these rapidly growing markets, you might already be feeling the pressure. Here are some tips to help navigate this shifting landscape:
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Start Your Search Early: Competition is fierce. Begin looking for new rentals 60–90 days before your intended move date.
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Negotiate Lease Terms: If you’re renewing, try negotiating for fixed-rate increases or amenities rather than accepting blanket hikes.
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Consider Nearby Suburbs: Expanding your search radius by a few miles can lead to more affordable options while still keeping access to the city.
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Check for Incentives: Some landlords still offer move-in incentives or free rent periods especially in newly built or managed buildings.
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Track Market Trends: Use rental websites like Realtor.com, Zumper, or Apartments.com to monitor price fluctuations in your area.
Looking Ahead
Experts believe that while some of these rent hikes may cool off later in 2025 particularly as more inventory enters the market the near-term outlook remains competitive for renters. Renters should expect continued volatility, especially in markets that are growing in population but lagging in housing development.
For housing advocates and policymakers, the recent surge underscores the urgent need for more affordable housing development and tenant protections particularly in historically lower-cost cities now experiencing rapid change.
Final Thoughts
The dynamics of the rental market are changing quickly. While affordability used to be a given in cities like Cincinnati or St. Louis, renters can no longer rely on outdated assumptions. Keeping a close eye on trends, planning ahead, and being flexible are key to navigating today’s real estate landscape.
Read the full CNBC article here: https://www.cnbc.com/2025/04/30/us-cities-where-rents-are-rising-fastest.html