Nearly Every U.S. Metro Has Higher Rental Prices than Pre-Pandemic, Despite Months of Declines

• Tariffs on building supplies could threaten continued price declines and damper new multi-family construction activity
• Markets most at risk from the impact of tariffs: Milwaukee; Oklahoma City; Memphis, Tenn.; Cleveland; Columbus, Ohio; Atlanta; Cincinnati; Birmingham, Ala.; and San Diego

AUSTIN, Texas, April 16, 2025 /PRNewswire/ -- For the 20th consecutive month rents declined in March, and the median asking price for rent in the 50 largest metros is now $65 lower than the 2022 peak, standing at $1,694, according to the Realtor.com^® March Rent Report. While rents have been declining for nearly two years due in large part to new multifamily inventory, new tariffs could have impacts on metros where multi-family permitting activity is growing the fastest, jeopardizing rent declines.

"While the median asking rent is down $65 monthly or over $700 annually, in nearly every major U.S. metro rents are still considerably higher than 2019," said Joel Berner, senior economist at Realtor.com^®. "We have seen declines in rents largely due to robust multi-family building and permitting adding more rental options in many metros. This tailwind is currently under threat as developers grapple with the short-term and long-term impacts of new and evolving tariffs on building materials. For renters in cities with declining rents, it might be a good time to lock in a good rate for the next year or beyond."

Despite Recent Price Declines, Rents Are Still Considerably More Than Before the Pre-Pandemic
This March marked the fifth anniversary of the onset of the global Covid-19 pandemic, and rents across the U.S. largely remain above pre-pandemic pricing. San Francisco remains the only market where the median asking rent is still below pre-pandemic levels. The median rent has risen 20.2%, from $1,409 in March 2019 to $1,694 in March 2025. During this period, Pittsburgh (47.9%) led the Northeast in rental growth, while Tampa, Fla. (45.7%) saw the fastest increases in the South. In the Midwest, Indianapolis (34%) emerged as the fastest growth market, and in the West, Sacramento, Calif. (30.6%) experienced the highest rent hikes.

Markets with the Fastest-Growing Multi-Family Permits Face the Greatest Potential Impacts from Tariffs
The recently announced tariffs on imported building materials such as steel and aluminum could potentially impact the multifamily housing supply by driving up construction costs. These rising expenses may discourage, delay or halt building and added costs could be passed to renters, pushing rental prices higher.

Markets that experienced rapid growth in permitted multifamily homes are expected to see the biggest impacts as developers and builders may postpone or even cancel new projects.

Markets such as Milwaukee, Oklahoma City and Memphis, Tenn., which saw the fastest growth in permitted multifamily homes, are expected to be hit the hardest by the 25% tariffs on steel and aluminum due to anticipated higher construction costs.

"Even markets with declining permitting activity could see impacts as rising construction costs could further dampen new development plans, restricting supply and continuing to exert upward pressure on rental prices," said Berner.

Markets with the Fastest-Growing Multi-Family Permits

National Rental Data – March 2025

Methodology 
Rental data as of March 2025 for studio, 1-bedroom, or 2-bedroom units advertised as for-rent on Realtor.com®. Rental units include apartments as well as private rentals (condos, townhomes, single-family homes). We use rental sources that reliably report data each month within the top 50 largest metropolitan areas. Realtor.com began publishing regular monthly rental trends reports in October 2020 with data history stretching back to March 2019.

About Realtor.com^®
Realtor.com^® pioneered online real estate and has been at the forefront for over 25 years, connecting buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 site trusted by real estate professionals, Realtor.com^® is a valued partner, delivering consumer connections and a robust suite of marketing tools to support business growth. Realtor.com^® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.

Media contact: Mallory Micetich, [email protected]

SOURCE Realtor.com