Apartments.com Rent Report for April 2025: The Vacancy Rate Begins to Fall

Key Takeaways:

• The national average rent in April was $1,625 per month, which is a year-over-year increase of 1.1%.
• Rent prices in all major markets are expected to increase by 2% or more by the end of the year.
• After years of flat rent prices, San Francisco rent prices are once again climbing, and are expected to rise more than 5% year-over-year by the end of 2025.

In April, the national average rent was $1,625 per month for a one-bedroom apartment and $1,882 for a two-bedroom. For the last year, rent growth has remained steady, inching up slightly by just over 1%.

Apartment demand is on the rise, and vacancy rates are reflecting this trend. The vacancy rate recently dropped to 8%, down slightly from 8.1% in March. After 13 consecutive quarters of increases, the vacancy rate seems to be reversing and is now on a downward trend. CoStar reports indicate that the rate will fall below 8% by the end of the year, which could contribute to higher rent prices.

For the past several months, Midwest markets like Chicago and Kansas City led the nation in rent growth, with increases of over 3%. This was followed closely by the Northeast, which also saw rents trending higher.

However, rents remain lower compared to last year in 14 of the 50 largest markets, especially in areas like Austin, Texas, where an oversupply of apartments continues to drive up vacancies and push rent prices down. That said, all major markets are expected to see rent growth of at least 2% or more by the year's end.

San Francisco Rent Prices Are on the Move

For years, rent prices in San Francisco stayed mostly flat. But now, the city is leading several major metros in rent growth, up more than 4% year-over-year.

A recent report from CoStar News points to a few reasons for the higher rent prices in San Francisco. The city’s population is growing again, the office market is bouncing back, crime rates are down, and the artificial intelligence industry is booming. OpenAI recently opened a new headquarters in Mission Bay, a neighborhood where rents shot up 6.5% in the past year.

Other popular neighborhoods in San Francisco are also seeing above-average rent increases. In South of Market, Downtown, and Civic Center/Tenderloin, rent prices have all risen by more than 5%.

CoStar predicts that rents will climb by 5.8% overall by the end of the year, making this the biggest annual increase since 2015. If the city stays on its current path, San Francisco could have the highest rent prices in the nation by 2026, with average rents surpassing $3,300 for the first time.

Demand for Luxury Ticks Up

In the past several months, the demand for budget-friendly and mid-priced apartments was high, while the demand for luxury apartments was low. Things shifted slightly in April, with the demand for mid-priced apartments slowing slightly and the demand for luxury picking up. For example, in Kansas City, the demand for luxury apartments rose 36% over last year, according to a CoStar news report.

One reason for this shift could be availability. With construction slowing down significantly, far fewer apartments are becoming available. CoStar reported that the number of new apartments being built this year could decrease by 42%, bringing construction levels to their lowest in six years.

Cities with the Biggest Rent Increases

In March, Kansas City, Missouri and Chicago, Illinoi topped the list of cities with the biggest rent increases, sitting at +3.5% and +3.3% respectively. While the Midwest is still well represented, April saw two new cities top the list of highest rent increases: Rochester, New York and Providence, Rhode Island.

For April 2025, here are the cities with the biggest rent increases:

• Rochester, NY (+4.3%)
• Providence, RI (+4.1%)
• San Francisco, CA (+4.0%)
• Chicago, IL (+3.9%)
• Omaha, NE (+3.4%)

Cities with the Biggest Rent Declines

For nearly a year, Austin has topped the list of the cities with the largest rent declines. Austin’s average rent is currently $1,435 per month, which is -4.5% lower than the national average. Last month, Austin was followed by Denver at -3.4%. In April, Huntsville claimed the second spot on the list with rent prices falling -3.3%.

For April 2025, here are the cities with the biggest rent declines:

• Austin, TX (-4.5%)
• Huntsville, AL (-3.3%)
• Colorado Springs, CO (-3.0%)
• Denver, CO (-3.0%)
• Sarasota, FL (2.6%)

Current Rent Prices Across the US

How Current Rent Prices Impact Renters

Overall trends can give you an idea of where rent prices are headed, but a lot depends on your location. For instance, if you're apartment hunting in San Francisco, expect steeper rent prices and tougher competition. On the other hand, in cities like Austin, you might find more affordable rent and even some attractive concessions.

If you’re planning to move to a different state, knowing current rent trends and using tools like the Cost of Living Calculator can help you determine how much money you’ll need to live comfortably in your new home.

Learn more about what you can expect by comparing the rent prices from this report to those from March and February to determine the overall trend and visit the US Rent Trends page to view the most current rent prices available across the US.

Methodology:

The rent data in this report is sourced from CoStar Group’s Market Trend reports. CoStar group is the leading authority in commercial real estate information, analytics, and news, trusted by real estate professionals for more than 37 years. By combining this data with Apartments.com internal data and public record, we’re able to deliver the most up-to-date rental information available.

To determine overall rent trends, we evaluate rent prices from more than 2,400 cities across the nation, including the top 80 national markets. This analysis includes year-over-year and month-over-month rent changes to provide a comprehensive view of market dynamics. This report covers a diverse range of property types to ensure a holistic view of the rental market.