Apartments.com, an industry-leading online marketplace operated by CoStar Group (NASDAQ: CSGP), has released its October 2025 Multifamily Rent Growth Report, indicating a significant deceleration in U.
S. apartment rents. The national average rent declined by 0.3% to $1,708, down from September’s revised figure of $1,713.
This marks the fourth consecutive month of flat or negative monthly rent changes and represents the steepest October decline in over 15 years. Three of the five steepest monthly rent reductions recorded over the past fifteen years have occurred within the last three months. Annual rent growth slowed further to 0.8%, decreasing from 0.9% in September and 1.5% at the start of the year.
While apartment rent growth typically follows a seasonal pattern, with spring acceleration and a late summer/fall slowdown, elevated national supply levels since 2022 have intensified this deceleration into outright declines each fall. From 2010 through 2024, the average October rent change was 0.07%. In contrast, from 2022 through 2024, October rents averaged a 0.15% monthly decline. The slowdown in October 2025, which is more than double this recent average, reinforces a broader trend of moderation in rent growth throughout the year.
All U.
S. regions reported rent declines in October. The West experienced the largest month-over-month drop at -0.53%, followed by the South at -0.28%, the Northeast at -0.24%, and the Midwest at -0.18%. Annually, the Midwest demonstrated the strongest performance with +2.2% growth, followed by the Northeast at +1.8%. Rents in the South remained unchanged year over year, while the West saw a decline of -1.4%.
Metro-level performance also softened across the country, with only Las Vegas and Milwaukee posting modest monthly rent gains of +0.2%. Rents in Miami and Norfolk remained stable. The most significant monthly declines occurred in Denver, down -1.3%, followed by Austin at -1.1%, Seattle at -0.9%, and Salt Lake City and Phoenix both at -0.8%. These Mountain West and Sun Belt markets continue to experience elevated vacancy rates due to aggressive new supply, which exerts downward pressure on rents. Softening demand, possibly influenced by factors such as Amazon’s job cuts in Seattle, may also be contributing to the weakness in Denver and Seattle.
Annually, San Francisco leads the nation with 5.8% rent growth, followed by San Jose at 3.8%, Chicago at 3.6%, and Norfolk at 3.0%. Conversely, Austin saw a -4.6% decline, Denver fell -3.7%, and San Antonio decreased -2.7%, primarily driven by oversupply outpacing demand. These patterns highlight a broader trend where markets with high levels of new construction exhibit weaker rent performance, while more supply-constrained metros, particularly in the Midwest and certain coastal areas, continue to outperform.
Although many markets have moved past their peak supply, a substantial inventory overhang continues to impact rent growth nationwide, suggesting a delicate balance for rent growth in the fourth quarter. In some markets, softened demand from major employer layoffs or economic slowdowns is also contributing to weaker rent growth.
CoStar Group, founded in 1986 and headquartered in Arlington, Virginia, is a global leader in commercial real estate information, analytics, and online marketplaces. The company aims to digitize the world’s real estate, offering insights and connections that enhance businesses and lives. Its portfolio includes brands like CoStar, LoopNet, Apartments.com, Homes.com, Domain, Matterport, STR, Ten-X, and OnTheMarket, which collectively attracted over 143 million average monthly unique visitors in the third quarter of 2025.
