thinking about moving, upgrading, or even buying. According to Realtor.com’s August 2025 data, this is
the 25th straight month of yearnovernyear rent declines for 0n to 2nbedroom properties.
Key Takeaways
- Median asking rent (for studios, 1nbed, and 2nbed units in the 50 largest metros): $1,713 in August
2025. That’s down about 2.2% year over year. - Compared to the peak in August 2022, rents are down about 2.6% overall. But even with the drop,
rents are still 17% higher than prenpandemic levels (2019). - Declines in rent hold across all unit sizes:
- Studios: ~$1,430, down ~1.7% YoY
- 1nbedroom: ~$1,593, down ~2.1%
- 2nbedroom: ~$1,897, down ~2.2%
What’s Changing Among Renters
Because rent is declining, renters are feeling more freedom to make choices they weren’t able to
before. Key shifts include:
- Mobility is rebounding: renter mobility rose in 2023 and 2024.
- Top reasons renters want to move: wanting more space; wanting lower cost; exploring a new
neighborhood vibe. - Willing tradenoffs: Those prioritizing affordability are more open to compromises — fewer amenities,
longer commutes, etc.
Regional Highlights & Where Rents Fell the Most
Some metros are seeing sharper pullnbacks from peaks than others:
- Las Vegas, NV: –13.6% from its peak.
- Atlanta, GA: –13.6%
- Austin, TX: –13.4%
Meanwhile, in some places, rents have been more resilient or even slightly up.
Big Picture / What It Means
- Affordability is improving, but it’s relative. Even though rents are down vs. recent peaks, many people
are still paying significantly more than in 2019. - Renters are considering homeownership more seriously. Nearly 60% of renters say they plan to buy a
home, with over half expecting to do so in the next one to two years. - Choices are opening up. Declining rents + more supply mean more options: renters may now
upgrade, renegotiate their lease, or search for better value.
What To Watch Going Forward
- Will the downward trend in rents continue, or is it seasonally driven?
- How will mortgage rates and home prices factor into the decision to buy vs rent?
- Local market variation matters a lot.
- Renters’ expectations and tradenoffs will shape demand for different housing types.
Conclusion
The August 2025 report from Realtor.com shows a rental market that’s softening. Rents have now
declined for over two years in many metro areas, opening up possibilities for renters to move, upgrade,
or just find better deals. Still, many are far from feeling “relieved,” especially compared to
prenpandemic costs.
For renters, now may be a good time to renevaluate housing needs. For landlords and developers,
adapting to shifting demand could be key. And for policymakers, improving access to homeownership
and affordable housing remains critical.
