Notable Trends
- The Zumper National Rent Index reported a 0.1% monthly decline in median one-bedroom rent this March, settling at $1,524, while two-bedroom rent stayed flat at $1,905. On an annual basis, one and two-bedroom rents are up 2.5% and 3.1%, respectively.
- San Francisco one-bedroom rent reached a nearly 5-year high, hitting $3,200, indicating the city’s ongoing recovery.
- Other Bay Area cities down the Peninsula and in the South Bay are experiencing double digit annual rent price growth rates up to 32%.
- Austin’s one-bedroom rent marked the 8th largest annual decline in the nation, driven by supply and shifting population trends.
New York City remained the nation’s most expensive rental market, with one-bedroom rent rising again in March, now just $30 shy of its all-time high that was reached in the summer and fall months last year. San Francisco rent climbed to its highest level in nearly five years and held onto its position as the second most expensive market. Among the top ten cities, San Francisco and San Jose saw the largest annual rent price growth rates, while Jersey City and Miami were the only markets to post year-over-year declines.
The Zumper National Rent Index reported a 0.1% monthly decline in median one-bedroom rent this March, settling at $1,524, while two-bedroom rent stayed flat at $1,905. On an annual basis, one and two-bedroom rents are up 2.5% and 3.1%, respectively.
The continued rise in annual rent growth across the national rent index signals potential inflationary challenges for the Federal Reserve as it considers future rate cuts. Given the lagging nature of the Consumer Price Index’s (CPI) Shelter Index—which factors in existing paid rents—Zumper’s national rent index serves as a leading indicator, capturing real-time market rent trends. The annual rent increases observed in our latest data will likely be reflected in CPI metrics in the months ahead.
“The U.S. rental market has remained remarkably resilient despite this period of macroeconomic uncertainty,” explains Zumper CEO Anthemos Georgiades. “This industry is more independent of wider macro trends than many people realize. The key dynamic to be aware of is that despite record levels of new supply entering the market in the past 2 years, new multifamily construction permits have plummeted, meaning supply will stall within a couple of years, putting upward pressure on rents again. Right now, it feels like the calm before the storm.”
To dive deeper into how Zumper’s monthly rent data provides insights to where the CPI is heading, please go to our blog post here: https://www.zumperrentals.com/blog/zumper-consumer-price-index/
San Francisco 1-bed rent reaches a nearly 5 year high of $3,200
San Francisco one-bedroom rent increased 1.9% this March to $3,200, reaching a nearly 5 year high. The last time San Francisco rent was priced at this rate was in July 2020. Both one and two-bedroom rents are up in the double digits annually. The continued growth rates seen in San Francisco’s rent prices indicate the city’s ongoing recovery. San Francisco’s apartment occupancy rate reached 95.4% in January 2025, a notable increase from its low of 92.2% in 2021, and bucked the national trend of 94.1%. Additionally, as we exit the winter months and head into spring, more demand is expected to be in the market overall, an additional factor that puts upward pressure on rent prices.
South Bay and Peninsula cities see annual rent growth up in the double digits
March data for other Bay Area cities suggests a continued rebound as well with several markets sustaining even stronger annual rent growth than San Francisco. Peninsula and South Bay markets like Menlo Park, Campbell, Palo Alto, and San Jose had some of the fastest growing rent increases with growth rates as high as 31.6% year-over-year. As hybrid work gains traction and big tech companies, many of whom are headquartered down the peninsula and in the South Bay, enforce return-to-office policies, with some requiring up to five days a week, many tech workers who previously left the Bay Area are likely returning, driving demand and pushing rents higher.
Austin’s annual rent price decline driven by supply and shifting population trends
Austin’s one-bedroom rent has dropped 4.6% year-over-year to $1,460, marking the eighth-largest decline in the nation. While record-high supply has been a major factor in driving prices down, shifting population trends appear to be adding to the downturn as well. Austin’s once-rapid population growth is showing signs of slowing, with data from the U.S. Census Bureau revealing a negative net migration into Travis County for the first time in 20 years. Rising housing costs have likely pushed many residents to more affordable surrounding areas, but this shift may also suggest that coastal transplants from states like California and New York are making their way back.
