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Rent growth slowed in May as US apartment occupancy held firm, with Southern markets dragging national performance.

By Nina Dale

Key Takeaways

• US apartment occupancy remained unchanged at 95.7% in May, holding gains made earlier in 2025.
• National monthly rent growth slowed to 0.26%, roughly half the rate seen a year ago.
• Rent cuts deepened in many South region markets, while gateway cities like San Francisco and New York posted notable monthly gains.
• Annual rent growth remains strongest in the Midwest and Northeast, while the South posted a -0.9% decline.

Occupancy Holds at 95.7%

US apartment occupancy held steady in May, unchanged at 95.7%, unchanged at 95.7%, while rent growth showed signs of slowing. That level is up 90 basis points since the start of 2025, per RealPage Market Analytics. All 50 major markets saw occupancy rise year-over-year. Still, 40% of them reported slight declines from April.

By region, the South slipped 10 basis points in May. The West was flat, while the Midwest and Northeast rose 10 and 20 basis points, respectively.

Rent Growth Slows in May

Monthly rent growth cooled to 0.26% in May. That’s down from 0.51% in the same month last year. Annual rent growth also slowed, dipping from 1% in April to 0.7%.

The Midwest led the country with 3.4% annual rent growth. The Northeast followed at 3.2%. The West trailed at 0.3%. The South posted a 0.9% annual rent decline.

South Region Struggles

Sun Belt markets continued to weaken. Austin led the downturn, with rents down 0.9% in May. That brought annual losses there to 8%, the steepest among all major metros.

Other cities—Phoenix, Tampa, Houston, Memphis, and Sacramento—also posted monthly rent cuts of 0.4% to 0.6%.

What’s Next

With peak leasing season underway, all eyes are on rent trends. Gains in gateway cities may signal broader recovery. But oversupplied regions will likely stay under pressure through summer.