icon

REsimpli now includes FREE skip tracing and Cash Buyer searches with every plan. Learn More.

icon
Uncategorized

75+ Rental Market Trends & Statistics: The Shifting Landscape (2025)

UPDATED January 30, 2025 | 6 MIN READ
Sharad Mehta
Written by
Sharad Mehta
Shares

We’ve compiled over 75 essential rental market statistics to give you a clear snapshot of the housing landscape in 2025. Drawing from REsimpli’s industry survey and other trusted sources, these insights cover everything from market performance and regional trends to housing accessibility and consumer behavior.

Top Rental Market Trends and Statistics (Editor’s Pick)

  • The national median rent closed out 2024 at $1,373 in December, declining by 0.6% from the prior month.
  • Impact predictions by market segment in the LA region by real estate professionals:
    • Luxury market: 20.98% 
    • Rental market: 5.42% 
    • Commercial market: 7.96% 
    • Industrial market: 2.44%
  • The most expensive cities to rent in the U.S. are New York, NY ($4,300), Jersey City, NJ ($3,090), and Boston, MA ($3,874).
  • Rental inventory increased by 17% in 2023.
  • Over 40% of renters are now searching for pet-friendly apartments.
  • 40% of renters say affordability is their top priority when searching for housing.
  • The average lease length has increased to 14 months, up from 12 months in 2023.
  • Energy-efficient rentals are in higher demand, with a 20% increase in tenant interest.
  • The bookings through online mode are anticipated to grow at a CAGR of 4.4% from 2024 to 2030.

Market Performance & Pricing

Rental pricing trends serve as a vital indicator of the overall housing market’s health and accessibility. These statistics reveal how national rent prices have evolved across different property types, showing notable shifts from pandemic-era peaks to current market conditions.

  • The national median rent closed out 2024 at $1,373 in December, declining by 0.6% from the prior month. 
  • Year-over-year rent growth nationally stands at -0.6%
  • Since the second half of 2022, the national median rent has fallen below its August 2022 peak by a total of 4.8%
  • The national median rent today is $8 per month cheaper than it was one year ago and $50 per month less than in August 2022 but remains $225 per month higher than the January 2021 level
  • The average rent for an apartment in the U.S. is $1,748
  • In 2023, rental prices grew by 3.2% nationwide, with Florida experiencing the highest growth at 7.8%.
  • The national median rent for a one-bedroom apartment is $1,500, showing a 5.2% year-over-year increase. 
  • The national median rent for a two-bedroom apartment is $1,850.
  • Studio apartment rents increased by 2.5% nationwide.
  • The average rent for a three-bedroom home is now $2,400
  • Apartment rent growth peaked at a record-breaking 15% annually in the first quarter of 2022 before decelerating to just 0.4% year over year by the third quarter of 2023.

Sources: REsimpli, Joint Center for Housing Studies, Zumper, RentCafe, Apartment List

Regional & Geographic Trends

Geographic variations in rental markets reveal critical patterns that shape investment opportunities and living costs across the United States. These statistics highlight the stark contrasts between regions, from coastal market corrections to steady Midwest growth, while showing how affordability and environmental factors influence local rental landscapes.

  • 63.2% in REsimpli’s survey of real estate professionals predict the residential market will be the most significantly impacted sector in the LA region due to widespread wildfires
  • Impact predictions by market segment in the LA region by real estate professionals:
    • Luxury market: 20.98% 
    • Rental market: 5.42% 
    • Commercial market: 7.96% 
    • Industrial market: 2.44% 
  • Austin metro has seen the sharpest decline among large metros, with prices down 7.4% in the last 12 months
  • The states with the lowest average rent are West Virginia ($927), South Dakota ($1,092), and Arkansas ($1,093)
  • The most expensive cities to rent in the U.S. are New York, NY ($4,300), Jersey City, NJ ($3,090), and Boston, MA ($3,874)
  • After Hawaii, California ranked as the second most expensive rental market in 2023. 
  • The median rent for one- and two-bedroom apartments in Los Angeles, CA reached approximately $2,067 by the end of 2023. 
  • Seven out of eleven major California cities reported negative annual rent rates for one-bedroom units. 
  • The most affordable cities include Wichita, Tulsa, and Toledo.
  • West Coast cities have experienced some rent declines, especially in tech-heavy areas. 
  • The Midwest region has seen a steady 4% increase in rental rates.
  • Renters in Texas spend an average of 32% of their income on housing, compared to California’s 45%

Sources: REsimpli, RentCafe, Zumper, Statista, Apartment List, California Apartment Association

Supply & Inventory

The balance between rental supply and demand directly influences market dynamics and housing accessibility nationwide. These statistics reveal the significant shifts in rental inventory levels and construction activity, showing how recent development trends are reshaping the rental landscape.

  • The median time on the market of 36 days in December is the highest reading seen for this metric in any month going back to the start of 2019. 
  • New multifamily completions reached a 35-year high in 2023
  • Rental inventory increased by 17% in 2023
  • The national vacancy index stands at 6.6%
  • The national average apartment size is 897 square feet, with the smallest apartments found in Seattle, WA (711 sq. ft.)
  • The apartment vacancy rate climbed to 5.5% in the third quarter of 2023 from a record low of 2.5% in early 2022
  • 436,000 multifamily units were completed in the third quarter of 2023 on a seasonally adjusted annualized basis. 
  • The median age of rental stock is now 44 years, up from 34 years two decades ago
  • Multifamily starts dropped by 30% year over year by October 2023 after reaching a seasonally adjusted annual rate of 571,000 units in May

Sources: Joint Center for Housing Studies, RentCafe, Landing, Apartment List

Demographic & Behavioral Trends

Understanding the evolving preferences and behaviors of renters is crucial for property owners and managers to adapt their offerings in today’s dynamic market. These statistics reveal how lifestyle changes, economic factors, and shifting priorities are reshaping rental decisions across both residential and vacation markets.

  • 32% of renters moved due to financial reasons in 2023. 
  • Remote work has contributed to a 5% decrease in urban rental demand. 
  • 40% of leisure travelers who book online are millennials. 
  • 64% of travelers prefer vacation rentals over hotels. 
  • 71% of families traveling with children prefer to prepare their meals, influencing their choice to stay in vacation rentals. 
  • Over 40% of renters are now searching for pet-friendly apartments. 
  • 40% of renters say affordability is their top priority when searching for housing.

Sources: Zumper, iProperty Management, Turnkey Vacation Rentals, Today’s Homeowner Media, Landing

Economic Indicators

The rental market serves as a vital economic barometer, closely intertwined with inflation metrics and household financial health. These statistics reveal how rental costs and market growth are shaping the economic landscape.

  • Housing comprises roughly one-third of the Bureau of Labor Statistics’ CPI inflation measure. 
  • The Consumer Price Index (CPI) for rent of primary residences reached nearly 411 index points in December 2023. 
  • The real estate volume in the ‘Residential Real Estate Leases’ segment in the U.S. is forecasted to increase by 0.9 million (+1.91%) between 2024 and 2029
  • The national rental market is projected to grow by 5% in 2024
  • Renters now spend an average of 30% of their income on housing costs. 

Sources: REsimpli, TenantCloud, Statista, Apartment List

Property Types & Segments

The diversification of rental property types reflects broader shifts in how people live, work, and travel. These statistics reveal the evolving dynamics across short-term rentals, luxury properties, and traditional housing segments.

  • Short-term rentals account for 15% of the total rental market in 2024.
  • Single-family rental homes have seen a 6% rise in occupancy rates in 2024. 
  • The global vacation rental market size was estimated at USD 89.32 billion in 2023 and is expected to reach USD 119.0 billion by 2030 with a CAGR of 3.7% from 2024 to 2030. 
  • The home accommodation segment dominated the global market with the largest revenue share of about 48% in 2023.
  • In 2021, there were 2.9 million hosts on Airbnb worldwide, with over 14,000 new hosts added each month. 
  • The luxury rental market in Manhattan reached a new high, surpassing $100 per square foot for the first time in over a year. 
  • Luxury apartment rentals have grown by 9% in the past year. 

Sources: Zumper, Elliman, Grand View Research, Stratos Jet Charters, Inc, TenantCloud

Housing Accessibility & Assistance

Access to safe, affordable housing remains a critical challenge in today’s rental market. These statistics reveal the growing affordability crisis and gaps in housing assistance affecting vulnerable populations.

  • The number of cost-burdened renter households reached a new high of 22.4 million in 2022, an increase of 2 million since 2019
  • The share of cost-burdened renter households increased to 50% in 2022, marking a 3.5 percentage point rise over three years
  • Since 2012, the market has lost more than 2.1 million rental units priced under $600 and 4 million units priced between $600 and $999
  • The number of people experiencing homelessness jumped by nearly 71,000 from January 2022 to January 2023, reaching an all-time high of 653,100 people
  • 14 million income-eligible renter households did not receive rental assistance in 2021.
  • The cost to address repair needs of occupied rental stock is estimated at $51.5 billion
  • About half of renters making less than $30,000 experienced energy insecurity in 2020. 

Sources: Joint Center for Housing Studies

Market Operations

The dynamics of rental property operations continue to evolve with changing market conditions and technological adoption. These statistics highlight shifts in lease terms, tenant preferences, and digital transformation across the rental industry.

  • The average lease length has increased to 14 months, up from 12 months in 2023
  • Energy-efficient rentals are in higher demand, with a 20% increase in tenant interest. 
  • The bookings through online mode are anticipated to grow at a CAGR of 4.4% from 2024 to 2030
  • Brooklyn landlord concessions fell to a five-year low, with many new leases signed through bidding wars. 
  • Landlord concessions in Northwest Queens fell to a six-year low
  • Google holds the largest market share for rental property reviews, accounting for 37% of all reviews in Q4 2023.

Sources: Statista, Elliman, TenantCloud, Grand View Research

Conclusion

The 2025 rental market shows mixed signals, with declining national rents (-0.6%) but significant regional variations, while tenant preferences shift toward longer leases, energy efficiency, and pet-friendly units amid increasing inventory levels. 

These trends indicate a market rebalancing after recent volatility, though affordability remains a key challenge. The growing focus on sustainability and digital innovation suggests a rental landscape continuing to evolve with changing consumer demands.

FAQS

The national median rent is $1,373 as of December 2024, showing a 0.6% decline from the previous month. While this represents an $8 decrease from the previous year, it remains $225 higher than January 2021 levels.

The most expensive cities are New York ($4,300), Boston ($3,874), and Jersey City ($3,090), while the most affordable states are West Virginia ($927), South Dakota ($1,092), and Arkansas ($1,093).

Rental inventory increased by 17% in 2023, with new multifamily completions reaching a 35-year high and the national vacancy index at 6.6%.

Over 40% of renters are now searching for pet-friendly apartments, 40% prioritize affordability, and there's a 20% increase in demand for energy-efficient rentals.

The national rental market is projected to grow by 5% in 2024, with online bookings expected to grow at a CAGR of 4.4% through 2030.

50% of renter households are cost-burdened as of 2022, with 22.4 million households spending more than 30% of their income on rent, representing an increase of 2 million since 2019.

scroll up