Could the tide in the housing market finally be shifting? Or, is it just a small blip on a larger overall radar?
Global property information and analytics provider Cotality has released its latest Single-Family Rent Index (SFRI) for August 2025, a breakdown of single-family rent price changes nationally and across major metropolitan areas. The SFRI found that single-family rent prices in August 2025 increased 1.4% from August 2024, a jump that is significantly less than the 3% average increase just one year ago.
One of the factors biting into the rental market is the state of the 30-year fixed-rate mortgage (FRM). As the FRM dips closer to the 6%-mark, more potential homebuyers who were sitting on the fence are jumping into the housing market. A market that once scared many off is growing increasingly favorable to some buyers as affordability improves.
“Annual single-family rent growth fell to its lowest level in more than 15 years this August, highlighting a notable shift in the rental market,” said Molly Boesel, senior principal economist at Cotality. “We’re seeing slower growth across price tiers and in many major metros. That said, not all areas are following the same pattern. Atlanta, Philadelphia, and Los Angeles continue to show stronger rent growth, with Los Angeles now only slightly above its pre-wildfire level from January. Los Angeles ranks second among the top 10 metros for rent growth, suggesting that local conditions such as recovery efforts, limited housing supply, and regional economic factors can still influence rental trends even as national price growth moderates.”
Cotality found that rent in both high-end and low-end price tiers climbed just slightly year-over-year, with higher-end properties experiencing strong growth for the last several months. Rent prices for high-end properties increased 1.6% year-over-year in August 2025, a drop from the year-over-year gain of 3.3% in August 2024. Low-end rent prices increased 1.1% year-over-year in August 2025, down from a 2.8% gain in August 2024. Rent for detached rentals grew by 1.5%, and attached rental rates rose by 1% in August 2025.
Among the largest 10 metro areas, Chicago remained at the top of the list for the highest rent growth at 4.7% in August 2025, followed by:
- Los Angeles at 2.8%
- Philadelphia at 2.7%
- Washington, D.C. at 2.6%
- Atlanta at 1.9%
Dallas recorded a 0.6% decline in rent growth in August 2025, making it the lowest in the nation. Single-family rent growth in the Dallas metro area has been mostly hovering around 0% for the past year, thanks to a large number of multifamily rental units coming online and giving renters some bargaining power.
