The cooling trend was broad-based, affecting both high-end and low-end properties
Single-family rent growth in the United States hit its lowest point in over 15 years, according to the latest data from Cotality’s Single-Family Rent Index (SFRI).
In August 2025, national single-family rent prices rose just 1.4% year over year, down sharply from the 3% average increase recorded a year earlier.
When rent growth slows, the potential returns for property investors decline. This may lead to fewer investors seeking mortgages to purchase single-family rental homes, reducing overall mortgage origination volume in the investor segment.
Rent growth decelerates across price tiers
The cooling trend was broad-based, affecting both high-end and low-end properties. High-end rentals, which had previously seen stronger gains, posted a 1.6% year-over-year increase in August, down from 3.3% in August 2024.
Low-end rentals saw a 1.1% rise, compared to 2.8% a year earlier.
Detached single-family homes outpaced attached units, with rents up 1.5% and 1% respectively.
“Annual single-family rent growth fell to its lowest level in more than 15 years this August, highlighting a notable shift in the rental market,” said Molly Boesel, senior principal economist at Cotality.
“We’re seeing slower growth across price tiers and in many major metros. That said, not all areas are following the same pattern. Atlanta, Philadelphia, and Los Angeles continue to show stronger rent growth, with Los Angeles now only slightly above its pre-wildfire level from January. Los Angeles ranks second among the top 10 metros for rent growth, suggesting that local conditions such as recovery efforts, limited housing supply, and regional economic factors can still influence rental trends even as national price growth moderates.”
In metros where rent growth remains strong, investor demand and mortgage activity may stay robust. In contrast, markets with declining or flat rents could see a pullback in both property purchases and mortgage lending.
Some landlords may look to refinance existing mortgages to lower their costs as rental income growth slows, especially if interest rates remain favorable.
Metro-level divergence persists
Chicago led the nation’s largest metros with a 4.7% annual rent increase in August, outpacing Los Angeles (2.8%), Philadelphia (2.7%), Washington, D.C. (2.6%), and Atlanta (1.9%).
In contrast, Dallas saw a 0.6% decline, the weakest among major markets. Analysts attributed Dallas’s flatlining rents to a surge in multifamily construction, which has boosted supply and given renters more bargaining power.
The deceleration in rent growth comes as the US rental market adjusts to a post-pandemic landscape marked by shifting migration patterns, increased multifamily supply, and evolving affordability pressures.
In fact, according to Apartments.com and CoStar Group, US apartment rents fell for the third month in a row in September, dropping 0.3% to an average of $1,712. This was the steepest September decline in more than 15 years and highlights a wider slowdown in the multifamily market.
While the national trend points to moderation, local factors, such as disaster recovery, regional job growth, and housing shortages, continue to drive divergence among metros.
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