Despite a steady cooldown in rents across the United States, the reality is clear: renters are still paying far more today than they did before the pandemic. A new report featured in “Nearly Every U.S. Metro Has Higher Rental Prices than Pre-Pandemic, Despite Months of Declines” highlights how deeply the rental market has shifted since 2019 and why affordability remains out of reach for millions of Americans.
This deep dive breaks down the data, explores the root causes, and explains what this means for renters, landlords, and property managers in 2025 and beyond.
NATIONAL MARKET OVERVIEW: A COOLING MARKET THAT’S STILL TOO HOT
As of March 2025, the national median asking rent stands at: $1,694 per month
This marks a 20.2% increase from the March 2019 median of $1,409 a staggering rise of nearly $300 more per month.
And although rents have been declining for 20 consecutive months, the drop still does not offset the historic rent surge during 2020–2022. The market peaked in 2022 and has softened by roughly $65 since then, giving renters about $700 per year in savings but nowhere near enough to restore pre-pandemic affordability.
WHERE RENTS HAVE RISEN THE MOST SINCE 2019
The report reveals that nearly every U.S. metro has experienced significant rent increases over the past five years. But some cities have seen explosive growth:
Markets With the Highest Post-Pandemic Rent Growth
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Pittsburgh, Pennsylvania – Up 47.9%
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Tampa, Florida – Up 45.7%
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Indianapolis, Indiana – Up 34%
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Sacramento, California – Up 30.6%
These are not the usual “expensive coastal” cities we expect showing how the affordability crisis has spread deep into mid-sized and previously budget-friendly metros.
The Lone Metro With Lower Rents Today
Only San Francisco remains below its pre-pandemic rent levels. Remote work culture, tech layoffs, shifting commuter patterns, and outbound migration have kept prices suppressed.
CONSTRUCTION, SUPPLY & TARIFFS: THE NEXT BIG HOUSING PRESSURE
Even though rents have cooled, the future outlook is complicated. The report warns that newly implemented 25% tariffs on steel and aluminum could disrupt the supply of new multifamily housing.
These materials are core components of apartment buildings, meaning:
Higher Construction Costs -> Delayed Projects -> Lower Future Supply
Cities most at risk are those that saw the fastest growth in multifamily permitting in recent years, including:
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Milwaukee, Wisconsin – Permits up 101.3%
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Oklahoma City, Oklahoma – Up 90.4%
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Memphis, Tennessee – Up 39.5%
If construction slows down now, rental inventory shortages may emerge in 2026–2027, potentially restarting an upward pressure on rents.
IF RENTS ARE DECLINING, WHY ARE THEY STILL SO HIGH?
A common question renters ask is:
“If prices are falling, why do they still feel unaffordable?”
Here’s why:
The Pandemic Rent Surge Was Historic
Between 2020 and 2022, rents skyrocketed at the fastest pace ever recorded. Even a two-year decline hasn’t undone that spike.
Renters Are Flocking to Rentals as Homeownership Becomes Unaffordable
Mortgage rates, insurance costs, and home prices remain high. In many cities:
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Renting is now cheaper than buying,
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and Americans are delaying homeownership.
This increases demand for rentals, keeping prices from falling sharply.
Operating Costs for Owners Have Increased
Property owners now face:
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Higher insurance premiums
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Rising repair and maintenance costs
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Increased labor expenses
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Stricter building code requirements in some markets
These costs often get passed to renters.
Construction Is Slowing Just as Demand Stays High
Even before the tariffs, developers were scaling back new projects due to:
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High interest rates
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Expensive financing
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Rising materials costs
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Labor shortages
Less construction -> fewer new units -> limited downward pressure on rents.
WHAT TODAY’S MARKET MEANS FOR RENTERS
For renters, the picture is mixed:
Yes, rents have cooled
Great for negotiating concessions (move-in credits, free months, etc.).
But affordability is still out of reach
Renters hoping for a “reset” to 2019 prices may be disappointed those levels are likely gone for good.
Strategic tips for renters:
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Compare nearby suburbs some offer significant savings
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Lock in lower rates now before supply tightens
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Watch for building concessions in new apartment communities
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Negotiate with landlords many are more flexible due to softening rent growth
WHAT THIS MEANS FOR PROPERTY MANAGERS & INVESTORS
For owners and managers, the market presents opportunities and challenges:
Opportunities
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Strong long-term demand from renters priced out of homeownership
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Stable occupancy levels
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Higher baseline rental income compared to pre-pandemic
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Potential for growth if inventory shrinks due to construction slowdowns
Risks
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Renters are becoming more price sensitive
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Delayed maintenance or poor service could impact retention
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Competition from new builds (where available) may require incentives
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Tariff-driven supply challenges could reshape project timelines
Property managers should prioritize:
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Retention strategies
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Transparent communication
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Proactive maintenance
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Automated processes to cut operational costs
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Upgraded digital tools and tenant portals
These improvements directly impact tenant satisfaction and long-term profitability.
THE FUTURE OF THE RENTAL MARKET: WHAT TO EXPECT NEXT
Looking ahead, several factors will shape the rental landscape for the next few years:
If construction slows due to tariffs -> supply shrinks -> rents stabilize or rise
If mortgage rates stay high -> more renters stay renting -> higher demand
If remote work declines -> urban rents may climb faster
If economic uncertainty continues -> renters delay buying even longer
While rents are unlikely to drop to pre-pandemic levels, modest declines or stability are the most realistic short-term outcomes.
The long-term risk, however, is a renewed affordability crisis if supply tightens again.
KEY TAKEAWAYS
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U.S. median rent in March 2025: $1,694 up 20.2% from 2019
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Nearly every metro has higher rents than before the pandemic
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Biggest increases: Pittsburgh, Tampa, Indianapolis, Sacramento
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Only San Francisco remains below 2019 levels
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New 25% steel/aluminum tariffs could squeeze multifamily construction
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Long-term risk: shrinking supply could push prices higher again
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Renters get temporary relief, but affordability challenges remain
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Property managers face a high-demand but cost-sensitive market