After years of aggressive rent hikes, a new report from Calculated Risk shows something renters have been waiting for: asking rents have barely changed compared to last year.
According to the latest national data, the median asking rent is showing near-zero year-over-year growth, marking one of the calmest rental markets since before the pandemic.
After a Wild Ride, Rent Growth Has Finally Stalled
From 2021 to 2022, renters across the U.S. faced the steepest rent increases in modern history. But that momentum has finally slowed.
Here’s what the report highlights:
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The median asking rent rose only 0.5% in May, reaching roughly $1,404.
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Year-over-year rent growth is now just 3.5%, a major drop from the double-digit spikes seen during the pandemic surge.
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Several rental indexes show rents flattening, suggesting that the days of runaway price increases may be behind us at least for now.
This shift signals a major cooldown after a period where intense demand, population movement, and limited housing supply pushed rents to record highs.
Why the Rental Market Is Easing
The report points to three major forces reshaping the rental landscape:
A Huge Wave of New Housing Supply
The U.S. is seeing one of the largest surges in multi-family construction in decades.
More apartments → more competition → fewer aggressive rent hikes.
Slowing Household Formation
During the pandemic, millions moved out, relocated, or formed new households driving demand.
Now that life has stabilized, people are moving less, and renter demand is leveling off.
Softer Seasonal Rent Pressure
Typically, spring and summer bring higher rents as more people relocate.
But this year, that seasonal bump was noticeably weaker, revealing just how much the market is cooling.
What This Means for Renters
If you’re renting or planning to this trend could work in your favor.
More Negotiation Power
Landlords who previously had dozens of applicants per unit may now accept smaller increases or even hold rents steady.
More Options, Less Pressure
With more apartments coming online, renters have increased flexibility and can shop around.
Local Markets Still Vary
National averages show stability, but some cities with limited inventory may still see tightening.
Meanwhile, high-construction metros such as Austin, Atlanta, Phoenix, and Nashville are seeing the biggest easing in rent growth.
For Landlords: A New Reality
This slowdown affects landlords, too.
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Those in oversupplied markets may need to offer incentives, upgrade units, or maintain competitive pricing.
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Landlords who bought properties at peak prices may face tighter margins.
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The shift highlights the importance of tenant retention during cooler market cycles.
What This Says About the Bigger Housing Picture
The cooling rental market is not just a relief for tenants it’s a signal.
It shows that supply matters.
A stronger pipeline of new rental units has finally helped stabilize prices that once seemed unstoppable.
While rents are far from “cheap,” the era of extreme growth appears to be behind us at least for the near future.
Final Takeaway
The U.S. rental market is finally taking a breather. With asking rents mostly unchanged and supply catching up, renters in 2025 may see better opportunities, more leverage, and a more balanced market overall.
Whether you’re a renter planning your next move or a property manager watching trends, this cooling phase could reshape decisions for the year ahead.
Source: https://calculatedrisk.substack.com/p/asking-rents-mostly-unchanged-year-4e6