Monthly apartment rent growth in the United States declined last month in its largest November drop in more than 15 years as an oversupply of units affects all parts of the country.
The national average monthly rent fell to $1,706, a 0.18% decrease from October's revised figure of $1,709. That marks the fifth consecutive month of no change or a decline in monthly rent, according to a new report from CoStar's Apartments.com.
"Apartment rent growth typically follows a seasonal pattern, with acceleration in the spring and a slowdown in late summer and fall," according to the report. "The seasonal trends have been more severe this year, but a moderating trend appears to now be underway."
Annual rent growth slowed to 0.7%, the report said. That's down from 0.8% in October and 1.5% at the start of the year.
Rent growth is slowing as the U.S. multifamily vacancy rate rises. "After compressing slightly in the first half of 2025, vacancy has increased in the second half to its current rate of 8.4%," according to a CoStar national multifamily analytics report. The vacancy rate stood at 8.26% in the first quarter.
"This upward drift reflects rising vacancy among stabilized properties," and has been partially offset by falling vacancy in newly completed supply in lease-up, CoStar said. A property is considered in lease-up if it has not yet reached at least 90% occupancy or has been open for less than 18 months.
"While the market hasn't entered a widespread downturn, the November data highlights the delicate balance of rent growth in the fourth quarter," the Apartments.com report found.
Nationwide rent reduction
All U.S. regions posted declines in rent in November, with the West leading the country with a 0.4% month-over-month decrease, followed by a 0.2% slide in the South and a 0.1% drop in the Northeast. Rents in the Midwest declined 0.01% in November.
On an annual basis, the Midwest posted the strongest performance in the country with 2.2% rent growth, followed by the Northeast at 1.7%. The South's rents declined 0.1% year over year, while those in the West slid 1.5%.
"Mountain West and Sun Belt markets continue to face elevated vacancy amid aggressive new supply, putting downward pressure on rents," the report found. The steepest monthly rent decline occurred in Las Vegas, down 0.8%, followed by Denver and the Texas cities of San Antonio and Austin, which each fell 0.7%. Salt Lake City, Utah; Raleigh, North Carolina; and Portland, Oregon, each posted a monthly decline of 0.6%.
"In select markets, however, softening demand may also be contributing to weaker rent growth, particularly where major employers have announced layoffs or where economic momentum has slowed," the report said.
In terms of annual rent growth, San Francisco led the nation with 5.6%, followed by San Jose, California, at 3.6%; Chicago, Illinois, at 3.4%; and Norfolk, Virginia, at 3.3%. In contrast, Austin's annual rent declined 4.7%, while Denver saw a 3.6% drop and Phoenix a 3.2% decrease, "all driven lower by oversupply outpacing demand," the report noted.
While apartment property executives see the supply pipeline shrinking, "the path to recovery for individual markets remains highly uneven across regions and asset classes," CoStar National Director of Multifamily Analytics Grant Montgomery wrote in an insight piece last month.