Rent Concessions Plateau as Busier Spring Season Nears (February 2025 Rental Market Report)

Rental demand shifts, with multifamily rent growth outpacing that of single-family homes

Skylar Olsen Mar 17 2025

As the busy rental season turns the corner, the typical asking rent across the U.S. has risen to $1,980, reflecting a 0.4% increase from last month. This rate is only slightly below the pre-pandemic monthly average of 0.5% for this time of year. The demand from new renters is strong enough to maintain upward pressure on rents, which are up 3.5% compared to last year.

For the first time since June 2024, single-family rent growth is now lagging behind that of multifamily units. In recent years, single-family rents typically outpaced multifamily growth due to high demand and limited supply. However, with an increase in single-family home construction, a slowdown in new apartment developments, and an affordability pinch, market dynamics are shifting. The typical asking rent for single-family homes is currently $2,189, marking a 0.4% increase from the previous month. In contrast, the typical asking rent for multifamily homes stands at $1,832, reflecting a slightly higher increase of 0.5% from last month.

Demand for single-family rentals is expected to remain strong until affordability in the sales market improves. These affordability pressures are also expected to fuel demand for smaller housing options like apartments. While impressive new apartment construction has alleviated some rent pressures, the slowdown in construction may lead to more competition as demand from renters continues to surge.

Contrary to national trends, three major metros have yet to see rents increase this year, experiencing monthly declines instead. Cincinnati recorded the largest drop at 0.4%, followed closely by Buffalo at 0.2% and Jacksonville at 0.04%.

Year over year, rents have increased in 47 of the 50 largest metro areas, particularly in the Midwest and Northeast. The most notable annual growth has been seen in Hartford (7.8%), Cleveland (6.3%), Providence (6.3%), Chicago (5.7%), and Milwaukee (5.5%).

While most metro areas are experiencing positive mild rent growth, landlords are still providing short-term relief through incentives, with over 41% of Zillow rental listings featuring concessions in February—consistent with last month. After seven months of rising rent concessions, this trend has now stabilized, and may have peaked in January. As competition in the rental market heats up and more people relocate, landlords are likely to reduce these incentives. Renters should anticipate fewer freebies as the year unfolds.

As rental costs keep climbing, the median household now dedicates 29.3% of its income to secure a typical rental—up from 26.9% before the pandemic. The income needed to comfortably afford a typical rental has climbed to $79,207. The most affordable rental markets include Austin (19.4%), Minneapolis (19.9%), and Salt Lake City (20%). Conversely, the least affordable areas are Miami (40%), New York (38.3%), and Los Angeles (36.8%).

Rents

The typical asking rent is $1,980 in February, up 0.4% month over month. The pre-pandemic average month-over-month change for this time of year is 0.5%.
Since the beginning of the pandemic, rents have increased by 33.9%.
Rents are now up 3.5% from last year.
Rents fell, on a monthly basis, in three major metro areas. The largest monthly drops are in Cincinnati (-0.3%), Buffalo (-0.2%) and Jacksonville (-0.04%).
Rents are up from year-ago levels in 47 of the 50 largest metro areas. Annual rent increases are highest in Hartford (7.8%), Cleveland (6.3%), Providence (6.3%), Chicago (5.7%), and Milwaukee (5.5%).

Single-Family Rents

The typical asking rent for single-family homes is $2,189 in February, up 0.4% month over month. Since the beginning of the pandemic, single-family rents have increased by 41.5%.
Single-family rents are now up 4.3% from last year.
Single-family rents fell, on a monthly basis, in 10 major metro areas. The largest monthly drops in single-family rents were in Providence (-1.5%), Buffalo (-1.5%), Boston (-1.3%), St. Louis (-0.4%), and New York (-0.2%).
Single-family rents are up from year-ago levels in all of the 50 largest metro areas. Annual single-family rent increases are highest in Hartford (7.8%), Cleveland (7.7%), Chicago (7.1%), Indianapolis (6.5%), and St. Louis (6.4%).

Multifamily Rents

The typical asking rent for multifamily homes is $1,832 in February, up 0.5% month over month. Since the beginning of the pandemic, multifamily rents have increased by 27.1%.
Multifamily rents are now up 2.8% from last year.
Multifamily rents fell, on a monthly basis, in six major metro areas. The largest monthly drops in multifamily rents are in Cleveland (-0.7%), Cincinnati (-0.3%), Jacksonville (-0.2%), Memphis (-0.2%), and Buffalo (-0.03%).
Multifamily rents are up from year-ago levels in 43 of the 50 largest metro areas. Annual multifamily rent increases are highest in Hartford (8%), Providence (6.7%), Virginia Beach (5.6%), Milwaukee (5.3%), and Chicago (5.3%).