Redfin Reports U.S. Asking Rents Rise Most Since 2022 As Apartment Construction Slows

Chicago saw the biggest jump in asking rents, while only three metros saw declines, led by Austin, TX

SEATTLE--(BUSINESS WIRE)-- The median U.S. asking rent rose 2.6% ($45) year over year to $1,790 in August—the largest increase since December 2022. That’s according to a new report from Redfin, the real estate brokerage powered by Rocket. It’s now just $70 below the record high hit in the summer of 2022.

August marked the third consecutive month of year-over-year increases following roughly two years of declining or flat rents. On a month-over-month basis, the median asking rent rose 0.3% in August.

Rents are rising because demand is strong—in part due to high homebuying costs—and supply is cooling.

“Apartment construction boomed during the pandemic, but many of those projects have since wrapped up and fewer new ones are breaking ground,” said Redfin Senior Economist Sheharyar Bokhari. “Builders are pumping the brakes due to high financing costs, elevated construction expenses and weaker investor appetite. With fewer new apartments coming on the market, renters have fewer options to choose from and landlords are regaining the ability to raise prices.”

The number of new apartments being completed fell to a seasonally adjusted annual rate of 385,000 in July—the most recent month for which data are available. That’s down 45.4% from an August 2024 peak of 705,000 in the wake of the pandemic building boom. Permits to build apartments are also falling, down more than 20% since the pandemic construction boom, according to a separate Redfin report last month.

In many parts of the country, renters have been having success asking for concessions like free parking or reduced rent, but those perks may dry up as supply slows.

Chicago Posts Biggest Increase in Asking Rents, Austin Posts Biggest Decrease

In Chicago, the median asking rent rose 10.7% year over year in August to $2,275—the biggest increase among the 42 major core-based statistical areas (CBSAs) Redfin analyzed. San Jose, CA saw the second-biggest increase (10.6%), followed by Philadelphia (9.9%), Pittsburgh (9.8%) and Washington, D.C. (8.7%).

Only three metros saw declines: Austin, TX (-3.1%), Louisville, KY (-2.4%) and Jacksonville, FL (-1.9%).

0-1 Bedroom Apartments See Biggest Jump in Asking Rents, Up 4% Year Over Year

The median asking rent for 0-1 bedroom apartments rose 4.4% year over year to $1,650 in August—the biggest increase since September 2022. For 2 bedroom apartments, it increased 3.6% to $1,920—also the largest jump since September 2022. And for 3+ bedroom apartments, it was flat (0.0% year over year) at $2,199—the first time there hasn’t been a decline in five months.

To view the full report, including charts and full metro-level data, please visit: https://www.redfin.com/news/rental-tracker-august-2025

About Redfin

Redfin is a technology-driven real estate company with the country's most-visited real estate brokerage website. As part of Rocket Companies (NYSE: RKT), Redfin is creating an integrated homeownership platform from search to close to make the dream of homeownership more affordable and accessible for everyone. Redfin’s clients can see homes first with on-demand tours, easily apply for a home loan with Rocket Mortgage, and save thousands in fees while working with a top local agent.

You can find more information about Redfin and get the latest housing market data and research at Redfin.com/news. For more information about Rocket Companies, visit RocketCompanies.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250909719391/en/

Contact Redfin

Redfin Journalist Services:

Tana Kelley

press@redfin.com

Source: Redfin