Renters in almost every area of the U.S. have been enjoying a steady downward trend in prices—with March marking the 20th month of a year-over-year decline in rates.
However, new research by Realtor.com® economists reveals four major cities where rent prices have gone in the opposite direction, surging by as much as 48% since March 2019.
While last month saw a small month-to-month increase in the median asking rent in the 50 largest metros, up by $4 to $1,694, according to the Realtor.com March 2025 Rent Report, for the most part, prices have been holding steady across the nation for the past year and a half.
Even the small increase from February to March is in keeping with the typical seasonal trend, which often sees prices rising in spring and summer, before slipping again with the arrival of fall.
Realtor.com economists analyzed rental data for zero- to two-bedroom properties that are advertised as being for rent on Realtor.com as of March 2025, as well as rental sources that reliably report data each month within the 50 largest metropolitan areas. Rental units include apartments and private rentals (condos, townhomes, single-family homes).
However, it’s not all good news for renters, who are still paying a vast amount more than they were before the COVID-19 pandemic hit in March 2020. In fact, data reveals that the median monthly rent is up by 20.2% from March 2019’s price of $1,409.
The data revealed that rent in four major cities have surged far beyond that, however: Pittsburgh (47.9%) in the Northeast and Tampa, FL (45.7%), in the South saw the fastest increases, while Indianapolis (34%) in the Midwest and Sacramento, CA (30.6%), in the West also experienced the highest rent hikes.
According to Joel Berner, senior economist at Realtor.com, rent price hikes in these areas are largely the result of increased competition among renters who have more money to spend.
“Economic and population growth lead to more renters with more money in their pockets chasing after a relatively fixed amount of rental inventory, which drives up prices,” he explains.
Northeast: Pittsburgh, PA
- 2025 March median rent: $1,452
- 2019 March median rent: $982
The slim inventory of homes for sale leaves little choice for people looking to buy, and that’s resulting in people continuing to rent.
“In Pittsburgh especially, homes for sale are hard to find, with the number of active listings down 39.3% in March 2025 compared to March 2019,” says Berner.
South: Tampa, FL
- 2025 March median rent: $1,738
- 2019 March median rent: $1,193
The median list price in Tampa is $463,000. A supply surplus and skyrocketing homeowners insurance make it even more expensive to own a home in that area.
“Though Tampa has more active inventory, it’s much more expensive to purchase a home there than it was six years ago. The median listing price in Tampa is up 45.8% over this span, compared to 38.9% nationally,” says Berner.
Midwest: Indianapolis, IN
- 2025 March median rent: $1,289
- 2019 March median rent: $962
The unemployment rate in Indiana continues to tick down, and Berner explains that low unemployment is leading to a higher demand in the rentals, which means less inventory. When there’s high demand and low supply, that drives up prices.
West: Sacramento, CA
- 2025 March median rent: $1,863
- 2019 March median rent: $1,426
According to the U.S. Bureau of Labor Statistics, each of these metros, except for Sacramento, has a lower unemployment rate than the national average.
“With healthy employment, rents can grow faster than they would in an economically depressed area,” Berner explains. “Some of the rent growth in these four metros can be attributed to difficulties in the for-sale market in terms of number and price of listings. When homebuying is difficult, many would-be first-time homebuyers decide to stay renting their home, which keeps rents growing in those areas.”
Rental trends
Realtor.com economists found that the downward trend in rent prices is mainly driven by the continued influx of new multifamily homes.
The report reveals the median asking rent for two-bedroom units dropped 1.4% year over year—which is the 22nd consecutive month of annual declines. Median rent for a two-bedroom is $1,878 nationally. Rent for a one-bedroom is also down year over year, to $1,577.
(Realtor.com)
However, they forecast that the relief might not be “long-lived” due to the recent 25% tariffs on all imported steel and aluminum, which could disrupt the supply of multifamily housing—moving rents higher because of increased construction costs. These factors might make builders less inclined to break ground on new projects, which could see a drop in available rental unit inventory.
Our economists believe the following markets that experienced rapid growth in permitted multifamily homes are expected to be hit the hardest.
- Milwaukee-Waukesha, WI
- Oklahoma City, OK
- Memphis, TN-MS-AR
- Cleveland, OH
- Columbus, OH
- Atlanta-Sandy Springs-Roswell, GA
- Cincinnati, OH-KY-IN
- Birmingham, AL
- San Diego-Chula Vista-Carlsbad, CA
It’s not to say that markets where permits for multifamily housing have declined won’t be spared either. Rising construction costs will affect any new plans moving forward.
