Rent Growth Slows, Dipping Below Pre-Pandemic Growth

Rent growth is slowing down as of July, ceasing the strong uptick seen in the first half of 2025, according to the latest data from Cotality.

Cotality’s Single-Family Rent Index for July found that rent growth came in 2.3% year-over-year, less than the 3.1% growth seen a year ago. Rent growth in July also dipped below the lower end of the 10-year average range of pre-pandemic growth.

Monthly growth only registered at 0.2%, which Cotality reports is below the historical July average of 0.7%, and “is a notable shift from the stronger-than-usual monthly gains recorded earlier in 2025.”

“After a strong start to the year, single-family rent growth is clearly losing steam,” said Molly Boesel, senior principal economist at Cotality. “In July, we broadly saw weakening in annual single-family rent growth across metro areas and price tiers.”

Annual rent growth also weakened across price levels in the July report. Rent prices for high-end properties increased 2.9% year-over-year in July, down from the year-over-year gain of 3.2% in July 2024. These higher-priced tiers previously saw stronger growth in past months. Low-end rent prices increased 1.6% year-over-year in July 2025, down from a 2.8% gain in July 2024.

On the other hand, rent prices for detached rentals grew by 2.2%, and attached rental rates rose by 1.8% in July 2025.

In terms of the 10 largest metros areas, Chicago shifted to the top of the list at 5.1% rent growth. New York-New Jersey-White Plains, NY-NJ remained in second with rent growth at 3.7%, followed by Philadelphia, Los Angeles and Washington, D.C. Meanwhile, growth in Los Angeles is slowing as the demand from the January wildfires dissipates. In addition, while Miami previously topped charts at 40% in 2022, it had the lowest rent growth recorded in July at 0%.

“Even markets like Los Angeles, which had been buoyed by post-wildfire demand, are now cooling off,” added Boesel. “Chicago stands out as the exception, leading the nation in rent growth amid tight inventory and resilient demand.”

For the full report, visit https://www.cotality.com/insights.