The U.S. single-family home rental market experienced a slowdown toward the end of 2025 as financial pressures on tenants increased, particularly across Sun Belt states. According to a report by Cotality, national rents rose by 1.2% in December 2025, compared with 2.5% the previous year, marking the slowest growth rate in nearly 15 years.
The deceleration affected 35 of the 50 largest metropolitan areas, with actual declines recorded in 18 markets. Florida, Texas, and Arizona were among the most impacted states.
Meanwhile, cities in the Midwest and Northeast showed relative resilience, with Chicago recording 4.8% growth, Philadelphia at 3.3%, Detroit at 3.1%, and Los Angeles at 2.4%.
The slowdown is largely driven by an increase in the supply of multifamily units, giving renters greater negotiating power. Luxury property rents rose by 2.2%, while lower-cost units declined by 0.3%.
Detached homes recorded growth of 0.8%, and attached properties increased by 0.9%. With supply continuing to expand, landlords’ returns are expected to face pressure during the first half of 2026, while tenants may find better opportunities to negotiate rental terms.
