Friday, July 31, 2026
National apartment rents show first annual gain in more than a year as supply begins to tighten
The national median rent for two-bedroom apartments rose from a year ago for the first time since June 2025, according to Zumper, signaling a gradual recovery in the rental market. San Francisco set new rent records while Texas cities continued to post th
The nation's apartment rental market is showing tentative signs of strengthening after more than a year of flat or declining prices, with median two-bedroom rents posting their first annual increase since mid-2025, according to a report released Wednesday by the rental marketplace Zumper.
The median monthly rent for a two-bedroom apartment rose 0.1% from a year earlier to $1,906 in July, while the median one-bedroom rent was unchanged at $1,520. It marked the first year-over-year increase for two-bedroom rents since June 2025, suggesting the rental market may be beginning to recover after a prolonged period of heavy apartment construction.
The report attributes the shift to slowing new apartment deliveries and rising occupancy rates as renters absorb the supply added during the construction boom of recent years. According to RealPage Market Analytics, U.S. apartment occupancy reached 95.5% in May after increasing for five consecutive months.
"The supply wave that reshaped this market is receding, and demand is gradually moving into the space it leaves behind," Zumper CEO Shawn Mullahy said in a statement. He cautioned, however, that conditions vary widely across the country and that "there really isn't an average housing market right now."
The report found local market conditions continue to depend largely on the balance between available apartments and renter demand.
San Francisco led the nation in rent growth, setting new records for both one- and two-bedroom apartments. Median monthly rent for a one-bedroom apartment climbed 22.9% from a year earlier to $4,180, while two-bedroom rent surged 25.9% to a record $6,020, the first time it has exceeded $6,000 in Zumper's data.
San Francisco's median two-bedroom rent now stands $570 higher than New York City's, widening the gap between the nation's two most expensive rental markets. New York remained the country's most expensive city for one-bedroom apartments at $4,560 per month.
The report said San Francisco's rapid rent increases coincide with a roughly 30% decline in active rental listings compared with a year ago, as fewer tenants move and new apartment construction remains limited.
San Diego ranked as the 10th most expensive city to rent in the nation in July. The price of a one-bedroom unit grew 1.4% to a median of $2,250 a month, while two-bedroom units remained flat at $3,000.
Elsewhere, Florida's rental markets continued to diverge. The rents in Miami stabilized as newly built apartments were gradually absorbed, with one-bedroom rent edging up 1.1% month-over-month to $2,640 in July and remaining nearly unchanged from a year ago. Active rental listings in Miami fell about 27% during the past year.
In contrast, Tampa continued to soften as inventory increased. The median one-bedroom rent declined 1.3% from the previous month to $1,500 and was down 6.3% from a year earlier, while active listings increased about 9%.
Texas continued to post some of the nation's steepest rent declines as apartment construction outpaced demand. Austin recorded the largest annual decrease, with median one-bedroom rent falling 16.4% from a year earlier. Houston followed with a 14.4% decline, while Dallas posted a 9.6% drop.
The report suggests that markets where new apartment supply has been absorbed are beginning to see rents stabilize or increase, while cities with continued inventory growth remain favorable for renters.
The median monthly rent for a two-bedroom apartment rose 0.1% from a year earlier to $1,906 in July, while the median one-bedroom rent was unchanged at $1,520. It marked the first year-over-year increase for two-bedroom rents since June 2025, suggesting the rental market may be beginning to recover after a prolonged period of heavy apartment construction.
The report attributes the shift to slowing new apartment deliveries and rising occupancy rates as renters absorb the supply added during the construction boom of recent years. According to RealPage Market Analytics, U.S. apartment occupancy reached 95.5% in May after increasing for five consecutive months.
"The supply wave that reshaped this market is receding, and demand is gradually moving into the space it leaves behind," Zumper CEO Shawn Mullahy said in a statement. He cautioned, however, that conditions vary widely across the country and that "there really isn't an average housing market right now."
The report found local market conditions continue to depend largely on the balance between available apartments and renter demand.
San Francisco led the nation in rent growth, setting new records for both one- and two-bedroom apartments. Median monthly rent for a one-bedroom apartment climbed 22.9% from a year earlier to $4,180, while two-bedroom rent surged 25.9% to a record $6,020, the first time it has exceeded $6,000 in Zumper's data.
San Francisco's median two-bedroom rent now stands $570 higher than New York City's, widening the gap between the nation's two most expensive rental markets. New York remained the country's most expensive city for one-bedroom apartments at $4,560 per month.
The report said San Francisco's rapid rent increases coincide with a roughly 30% decline in active rental listings compared with a year ago, as fewer tenants move and new apartment construction remains limited.
San Diego ranked as the 10th most expensive city to rent in the nation in July. The price of a one-bedroom unit grew 1.4% to a median of $2,250 a month, while two-bedroom units remained flat at $3,000.
Elsewhere, Florida's rental markets continued to diverge. The rents in Miami stabilized as newly built apartments were gradually absorbed, with one-bedroom rent edging up 1.1% month-over-month to $2,640 in July and remaining nearly unchanged from a year ago. Active rental listings in Miami fell about 27% during the past year.
In contrast, Tampa continued to soften as inventory increased. The median one-bedroom rent declined 1.3% from the previous month to $1,500 and was down 6.3% from a year earlier, while active listings increased about 9%.
Texas continued to post some of the nation's steepest rent declines as apartment construction outpaced demand. Austin recorded the largest annual decrease, with median one-bedroom rent falling 16.4% from a year earlier. Houston followed with a 14.4% decline, while Dallas posted a 9.6% drop.
The report suggests that markets where new apartment supply has been absorbed are beginning to see rents stabilize or increase, while cities with continued inventory growth remain favorable for renters.
