U.S. Apartment Asking Rents Post Biggest Increase in 2.5 Years

San Jose and Chicago saw the biggest increases in asking rents, while Jacksonville and Austin saw the biggest declines The median U.S. asking rent rose 1.7% ($30) year over year to $1,790 in July—the largest increase since January 2023. That’s according to a new report from Redfin, the real estate brokerage powered by Rocket. July marked the second-consecutive year-over-year increase (the median asking rent rose 0.4% in June) following over two years of declining or flat rents. The median asking rent climbed 0.8% on a month-over-month basis in July. “Asking rents may be climbing because shrinking apartment supply is coinciding with growing renter demand, which is being fueled by the high cost of homeownership,” said Redfin Senior Economist Sheharyar Bokhari. “Rents have been sluggish for the past two years because the pandemic building boom created a surplus of supply, which left landlords scrambling to fill vacancies and gave renters negotiating power. But now a slowdown in apartment construction may be shifting the balance of power toward landlords.” Permits to build multifamily housing have fallen 23.1% since the pandemic construction boom as sluggish rents and high borrowing costs for builders have made building less attractive, Redfin reported this week. In many parts of the country, renters have had success asking for concessions like free parking or reduced rent, but those perks could dry up as supply shrinks. While the median asking rent is ticking up, it’s worth noting that it remains $70 below the July 2022 record high of $1,860. Wages are also growing faster than asking rents, indicating that rental affordability is actually improving. This report marks the debut of Redfin’s new rental methodology. Previously, Redfin reported on median asking rents for units in buildings with 5+ units using data from Rent. Redfin now reports on median asking rents for units in buildings with 25+ units using data from Zillow, who Redfin partnered with in February. Redfin reports on rolling three-month periods; this report focuses on asking rents during the three months ending July 31, 2025, which Redfin refers to as “July.” San Jose Posts Biggest Increase in Asking Rents, Jacksonville Posts Biggest Decrease In San Jose, CA, the median asking rent rose 8.8% year over year in July to $3,569—the biggest increase and the highest level among the 43 major core-based statistical areas (CBSAs) Redfin analyzed. Chicago saw the second-biggest increase (8.6%), followed by Washington, D.C. (8.5%), Pittsburgh (7.7%) and Philadelphia (7.5%). Some of these metros may be seeing rents jump because new supply has been shrinking. Permits to build apartments in San Jose have fallen 74.5% since the pandemic—the second biggest decline among the 78 metros analyzed in a separate report. Philadelphia posted the fifth-largest decline in permits, down 62.1%. Only seven of the metros Redfin analyzed in this report saw asking rents fall, led by Florida and Texas. Jacksonville, FL saw the biggest decline (-3.5%), followed by Austin, TX (-2.6%), Louisville, KY (-2.4%), Cincinnati (-1.7%), Phoenix (-1.1%), Cleveland (-1%) and Orlando, FL (-0.2%). Again, it’s likely a supply story. Florida and Texas are permitting more multifamily housing than other parts of the country. Austin granted permits to build 63.6 multifamily units for every 10,000 people over the past year—the second highest among the metros Redfin analyzed. Orlando and Jacksonville are also near the top of the list when it comes to permitting. Asking Rents Are Falling Fastest for Two Bedroom Apartments The median asking rent for 0-1 bedroom apartments rose 3.4% year over year to $1,650 in July—the biggest increase since September 2022. For 2 bedroom apartments, it increased 1.7% to $1,907—the largest jump since November 2022. And for 3+ bedroom apartments, it fell 1.5% to $2,192—the lowest level for this time of year since 2021. To view the full report, including charts, a methodology and full metro-level data, please visit: https://www.redfin.com/news/rental-tracker-july-2025