Apartment rents declined in September with the national average falling to $1,712, a 0.3% dip from August’s revised figure of $1,717.
According to data from Apartments.com, an online marketplace of CoStar Group (NASDAQ: CSGP), this marks the third consecutive month of flat or negative monthly rent change and the steepest September decline in over 15 years. Annual rent growth slowed further to 0.9%, down from 1.0% in August and 1.5% at the start of the year.
In its data report, Apartments.com noted that “rent growth typically follows a seasonal pattern, with acceleration in the spring and a slowdown in late summer and fall. While month-over-month declines are common during this period, the recent year-over-year slowdown—which adjusts for seasonality—signals a more pronounced softening in the market. Notably, the rent decline from peak levels through September 2025 is steeper than in 2024, both in absolute dollars and in percentage terms, underscoring that this year’s pullback exceeds typical seasonal patterns and reinforces the broader trend of moderation in rent growth.”
All regions posted month-over-month rent declines in September, most notably in the West with a -0.5% tumble. On an annual basis, the Midwest posted the strongest performance with +2.4% growth, followed by the Northeast at +1.9%, and the South inching up by +0.1%; only the West recorded a decline, falling by -1.3 %.
At a metro-level performance, only Milwaukee at +0.1%, and Cleveland at +0.02%, posting monthly rent gains. The steepest monthly declines occurred in Denver, down -1.3%, followed by Raleigh at -1.2%, San Antonio at -0.9%, and Salt Lake City at -0.8%. For annual rent growth, San Francisco led the nation with a 6.1% rise while Austin saw the greatest decline at -4.4%.
“These patterns reinforce the broader trends: markets with the highest levels of new construction are seeing the weakest rent performance, while more supply-constrained metros — particularly in the Midwest and select coastal areas — continue to outperform,” said the Apartments.com report. “Although many markets have moved beyond peak supply, a substantial inventory overhang continues to weigh on rent growth nationwide.”
