F
or Rent sign outside a Capitol Hill building in Washington, DC, August 12, 2025 (Al Drago/Getty Images). The piece first appeared in CNBC’s Property Play newsletter with Diana Olick, which highlights emerging real‑estate opportunities for investors of all sizes.

    After a strong first half of the year, single‑family rents slowed in July. Year‑over‑year, July rents rose 2.3 %, down from the 3.1 % increase seen a year earlier and below the lower end of the 10‑year pre‑pandemic growth range, according to Cotality data. “Rent growth is losing steam,” said senior principal economist Molly Boesel. “July shows weakening across metro areas and price tiers.” Monthly growth was only 0.2 % higher than June, far below the historical July average of 0.7 %.

    Los Angeles, once buoyed by post‑wildfire demand, is cooling, while Chicago remains the only market with double‑digit growth, up 5.1 %. New York City follows at 3.7 %, with Philadelphia and Washington, D.C. next. Los Angeles still ranks in the top five, but Dallas and Miami lag; Miami recorded zero growth versus a 40 % surge in 2022 driven by pandemic‑era migration to the South.

    Rent growth has weakened across all price points. High‑end rents increased 2.9 % YoY, down from 3.2 % in July 2024. Low‑end rents rose 1.6 % versus 2.8 % the previous year. Single‑family rentals had outpaced apartments in recent years because multifamily supply surged while home‑sale prices spiked, prompting families to rent in desirable school districts. Single‑family REITs—Invitation Homes, American Homes 4 Rent, and others—have been expanding rental communities to meet demand, raising questions about whether the recent slowdown will prompt a pullback.

    In July, Property Play noted that the largest single‑family REITs were selling more homes than they were buying, a strategy aimed at consolidating into full‑community rentals rather than standalone properties.