Average apartment rents in the United States decreased slightly in August, marking the first monthly decline in eight months. This comes from a recent analysis by Apartments.com, a research unit of CoStar Group. Despite this monthly drop, annual rent development remains positive.
The national average monthly rent fell by 0.03 per cent in August to USD 1,751. This represents a decrease of USD 1 compared to the upwardly revised figure of USD 1,752 in July. This development ended a series of eight consecutive months of rent increases. According to the report, this monthly decline continues the pattern of late-summer rent reductions observed since 2024, even if rent growth typically slows during the late-summer rental season.
Comparison with Previous Years and Regional Differences
However, the 0.03 per cent decline in August this year was 'significantly milder' than the 0.1 per cent declines in August 2024 and 0.2 per cent in August 2025. This indicates an improvement in pricing conditions. Despite increased supply slowing down price momentum, rent growth continues nationwide on average.
In August, the Pacific Northwest and the Midwest recorded the strongest annual rent growth at 2.2 per cent each, closely followed by the Northeast region with an increase of 2 per cent. Overall, 12 of the top 50 markets showed a monthly rent increase in August, while seven markets saw no change, and 31 markets recorded declines.
Market Developments in California
Some markets in California showed robust monthly rent development. Average rents increased by 0.6 per cent in Orange County, 0.4 per cent in San Francisco, and 0.3 per cent in the East Bay. San Jose recorded an increase of 0.2 per cent, comparable to Chicago. On an annual basis, however, San Francisco stood out with an increase of 11.9 per cent. San Jose followed in second place with 7.7 per cent growth.
The report notes that the breadth of monthly rent growth narrowed regionally in August, although annual performance strengthened across all regions and continues to be strongly linked to local supply conditions. Although most markets have passed their construction peaks, a significant, albeit gradually diminishing, supply overhang continues to moderate rent growth at the national level as the summer rental season draws to a close.
