Bad news for landlords, good news for renters as price appreciation slows
US single-family rent growth slowed in July, rising just 2.3% from a year earlier, down from 3.1% last July and now below pre-pandemic averages.
Cotality’s latest Single-Family Rent Index showed that, after a strong start to 2025, rental market momentum in that space weakened in most large cities and across all price ranges.
“After a strong start to the year, single-family rent growth is clearly losing steam,” said Molly Boesel, senior principal economist at Cotality. In July, annual rent growth slowed across most cities and price levels, with the monthly increase at just 0.2%—well below the typical July average of 0.7%.
"Even markets like Los Angeles, which had been buoyed by post-wildfire demand, are now cooling off. Chicago stands out as the exception, leading the nation in rent growth amid tight inventory and resilient demand.”
Cooling trend extends across price tiers
Cotality’s data showed that rent growth softened at every price level in July. High-end single-family rentals posted a 2.9% annual increase, down from 3.2% in July 2024, while low-end rents rose just 1.6%, compared to 2.8% a year prior.
The slowdown was also evident in property types: detached rentals grew by 2.2%, and attached rental rates rose by only 1.8% year over year.
Among the nation’s 10 largest metro areas, Chicago emerged as the outlier, topping the list with a 5.1% annual rent increase. New York-New Jersey-White Plains followed at 3.7%. Philadelphia, Los Angeles, and Washington, DC rounded out the top five.
Notably, Los Angeles—previously buoyed by post-wildfire demand—slipped to fourth place as the market cooled. Miami, which saw rent growth soar above 40% in 2022, recorded flat growth in July.
But other reports suggest renters are still feeling strain in the market. When all property types including multifamily apartments are taking into account, asking rents have jumped in several major markets. A Redfin report found that Chicago saw the biggest increase, with median rents up 10.7% to $2,275. San Jose, Philadelphia, Pittsburgh, and Washington, DC also had rent hikes of more than 8%. Only Austin, Louisville, and Jacksonville saw rents drop, with Austin down 3.1%.
A shift from pandemic highs
The deceleration in single-family rent growth nevertheless comes after years of pandemic-driven surges, particularly in Sun Belt metros and gateway cities. As the market normalizes, landlords and investors are adjusting to a new reality of slower gains and, in some cases, stagnant rents.
While demand remains resilient in select markets with tight inventory, the broader trend points to a cooling single-family sector.
Industry analysts have noted that the current environment may offer some relief for renters after several years of rapid escalation. However, the underlying factors—such as limited housing supply and persistent affordability challenges—remain unresolved.
As Boesel noted, “The market is recalibrating, but the fundamentals haven’t dramatically changed.”
"House price trends aren’t static, so this type of analysis is meant to help frame the decision to rent or buy, not settle it,” First American deputy chief economist Odeta Kushi previously said.
“Right now, renting looks more financially prudent in many markets, as ownership costs remain high and equity benefits have slowed."
