Apartments.com Releases Multifamily Rent Growth Report for October 2025
National Trends and Market Overview
Apartments.com, a leading online rental marketplace under CoStar Group (NASDAQ: CSGP), has released its latest multifamily rent growth report for October 2025, highlighting continued deceleration in rent growth across the United States. The report shows that national average apartment rents declined to $1,708 in October, down 0.3% from September’s revised level of $1,713. This marks the fourth consecutive month in which rents have either stagnated or declined month over month. Notably, the October decrease represents the sharpest drop for any October in more than fifteen years, signaling persistent pressure from elevated housing supply and shifting market dynamics.
Annual rent growth has also softened, slowing to 0.8% in October from 0.9% in September and significantly below the 1.5% level observed at the beginning of 2025. While rents remain slightly above year-earlier levels, the market continues to trend toward moderation rather than acceleration.
Seasonality and Supply Influence Rent Patterns
Historically, multifamily rents follow a seasonal pattern, rising during the spring and summer leasing months and easing during the fall and winter. However, since 2022, rising supply levels have intensified the seasonal slowdown, turning what was once mild deceleration into outright monthly declines during the latter part of the year. From 2010 to 2024, average October rent change hovered near flat at +0.07%. Yet from 2022 through 2024, the average October decline was -0.15%. The October 2025 decline—more than twice that figure—continues a trend of sharper fall reversals in rent performance.
The data underscores a broader theme: while demand remains present, new apartment construction has outpaced absorption in many markets. As large volumes of new units continue to enter lease-up phases across the country, landlords have been adjusting pricing strategies to remain competitive. The multifamily sector has not entered a widespread downturn, but rent growth sits on a delicate balance heading into the final quarter of the year.
Regional Performance Differences
All major U.S. regions recorded month-over-month rent declines in October, though performance varied in magnitude:
- West: -0.53% monthly decline
- South: -0.28%
- Northeast: -0.24%
- Midwest: -0.18%
On an annual basis, the Midwest continues to lead the country, with rents increasing 2.2% year over year. The Northeast followed closely at 1.8%. Meanwhile, rents in the South were flat annually, reflecting equilibrium between supply and demand. The West remains the weakest region, recording a -1.4% annual decline, in part due to substantial multifamily construction combined with demand shifts in key tech-driven metropolitan areas.
Metro-Level Insights
At the metro level, performance weakened broadly across the United States, with only two major metros—Las Vegas and Milwaukee—recording modest monthly gains of 0.2% each. Rents held flat in Miami and Norfolk, suggesting relative stability in those markets.
Some cities experienced more pronounced declines:
- Denver: -1.3% month-over-month
- Austin: -1.1%
- Seattle: -0.9%
- Salt Lake City & Phoenix: -0.8% each
These metros, particularly in the Mountain West and Sun Belt, continue to absorb an outsized share of new construction. Elevated vacancy rates, combined in some cases with softening economic conditions or shifting employer hiring trends, have contributed to downward pricing pressure. For example, recent job cuts at Amazon are noted as a potential contributor to weaker demand in Seattle.
Conversely, markets with more constrained supply continue to outperform in terms of annual growth. Leading metros include:
- San Francisco: +5.8% annual rent growth
- San Jose: +3.8%
- Chicago: +3.6%
- Norfolk: +3.0%
On the other end of the spectrum, metros facing pronounced oversupply reported notable year-over-year rent declines:
- Austin: -4.6%
- Denver: -3.7%
- San Antonio: -2.7%
These trends illustrate clear geographic divides. Markets where development pipelines have been especially active are now seeing rent declines as supply outpaces demand. Meanwhile, metros with tighter housing inventories—particularly in coastal regions and the Midwest—have maintained pricing power.
About CoStar Group
CoStar Group (NASDAQ: CSGP) is a global leader in real estate information, analytics, and online marketplaces. Founded in 1986, the company provides data, digital platforms, and market intelligence to commercial, residential, and multifamily real estate professionals. Its portfolio includes prominent brands such as CoStar, LoopNet, Apartments.com, Homes.com, Domain, Matterport, STR, Ten-X, and OnTheMarket. In the third quarter of 2025, CoStar Group’s platforms attracted more than 143 million average monthly unique visitors worldwide. The company is headquartered in Arlington, Virginia.
The October multifamily report from Apartments.com highlights the ongoing shift in the U.S. rental housing landscape and provides a crucial reference point for industry stakeholders assessing supply, demand, and pricing trends heading into 2026.
