National rents for single-family homes increased 1.2% in December 2025 from a year previously, according to Cotality’s most current Single-Family Rent Index (SFRI). That marks a steep slowdown from the 2.5% annual gain taped in between December 2023 and December 2024, and leaves rent development hovering near its lowest level in practically 15 years.
The pullback was prevalent. Thirty-five of the 50 largest U.S. cities posted slower annual rent development in December 2025 than a year prior, while 18 metros tape-recorded outright year-over-year decreases. Florida represented 8 of those drops, with three in Texas and 2 in Arizona– regions that had previously led the country in post-pandemic rent acceleration.
“The single-family rental market ended 2025 on a significantly softer trajectory,” stated Molly Boesel, senior primary financial expert at Cotality. “Persistently high multifamily vacancy rates are providing tenants significant take advantage of, softening rents even in the single-family section.”
Midwestern and Northeastern markets revealed relative durability. Chicago led the nation for the third consecutive month, posting 4.8% annual lease growth in December. Philadelphia followed at 3.3%, routed by Detroit at 3.1%. The New York-Jersey City-White Plains city saw leas rise 2.5%, while Los Angeles posted a 2.4% boost.
By contrast, several big Sun Belt metros stayed under pressure. Dallas recorded a 1.2% annual decline, while Miami fell 1% and Houston slipped 0.3%. Elevated house supply in those markets has spilled over into the single-family rental sector, restricting property owners’ prices power.
The data likewise point to a widening divide across income tiers.
High-end single-family rents rose 2.2% year over year in December, below a 2.8% gain the previous year but still close to their long-run average. On the other hand, low-end leas fell 0.3%– a sharp reversal from the 2.8% increase tape-recorded in December 2024.
The divergence highlights what economic experts describe as a “K-shaped” housing market, in which higher-income households remain reasonably insulated while budget-constrained renters face affordability pressures and increased competition from newly delivered multifamily systems.
Detached rental homes saw leas increase 0.8% each year in December, somewhat listed below the 0.9% gain for attached properties, suggesting broadly comparable demand conditions throughout real estate types.
With lease growth near multi-decade lows and supply still elevated in several high-growth states, landlords may deal with continued rates restraints in early 2026. For occupants, however, the shift signals enhanced negotiating power after years of rapid cost increases– though affordability obstacles remain entrenched across much of the nation.
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