Median Asking Rent Rose 1.7% to $1,790 in July

Seattle, WA, August 19, 2025-The median U.S. asking rent rose 1.7% ($30) year over year to $1,790 in July-the largest increase since January 2023, reports Redfin. 

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, we reported on median asking rents for units in buildings with 5+ units using data from Rent. We now report on median asking rents for units in buildings with 25+ units using data from Zillow, who Redfin partnered with in February. We report on rolling three-month periods; this report focuses on asking rents during the three months ending July 31, 2025, which we refer to as “July.”