Rentec Direct has released the State of Rent Report, highlighting national trends and offering valuable insight into the rental market in 2025. This unique report, based on actual tenant rent payment data, can help investors, landlords, and property managers gain a data-driven understanding of the current market.
As the rental landscape continues to evolve, Rentec Direct’s newly released report, The State of Rent: Housing Affordability Trends Across the U.S., offers a timely and data-driven look at rent trends from 2019 to 2024.
Using aggregated actual rent payments from over 374,000 lease agreements, this report sheds light on affordability challenges and regional fluctuations shaping the housing market in 2025.
Review all the market insight and download the full report: The State of Rent: Housing Affordability Trends Across the U.S
National Overview on Rent Prices
The national average rent paid in 2024 was $1,302, marking a 31% increase over the past five years. The sharpest year-over-year jump occurred between 2021 and 2022, likely reflecting post-pandemic corrections in pricing and a return to stricter rent enforcement.
Unlike reports that rely on advertised rents, this analysis is based on actual rent paid, offering a more accurate reflection of affordability across markets—especially in rent-controlled areas.
Highest & Lowest Average Rents by State (2024)
| Highest Average Rents | Monthly Avg. |
| Hawaii | $2,132 |
| California | $2,101 |
| Washington | $1,785 |
| New Jersey | $1,758 |
| Florida | $1,752 |
| Lowest Average Rents | Monthly Avg. |
| West Virginia | $693 |
| Louisiana | $825 |
| Minnesota | $840 |
| Nebraska | $850 |
| South Dakota | $901 |
States with the Largest Rent Increases (2019–2024)
| State | % Increase | 2019 Rent | 2024 Rent |
| Arizona | 84% | $891 | $1,641 |
| Tennessee | 67% | $795 | $1,326 |
| New Mexico | 65% | $783 | $1,295 |
| Georgia | 63% | $819 | $1,339 |
| Maryland | 61% | $1,035 | $1,669 |
Notable Drivers on Rent Increases:
- Population growth and limited inventory
- Corporate relocations and job market expansion
- Migration from high-cost states to states with historically affordable housing, increasing demand
- Increased operational costs, including maintenance expenses and interest rates
States Showing Rent Stabilization or Decline
Minnesota stands out with a 34% drop in average rent—from $1,285 in 2019 to $849 in 2024—largely driven by zoning reforms like the Minneapolis 2040 plan.
Other states with relatively stable or declining rents:
- Connecticut
- Louisiana
- New York
Key Insights for 2025 on Rent Prices
- Rent growth is slowing, but prices remain elevated in most states.
- Local policy matters: Land use laws and reform in Minnesota is improving affordability.
- Investor behavior is shifting: Building costs and material costs are limiting new construction
- Climate change and natural disasters: Areas at risk for hurricanes and wildfires are increasingly less attractive for real estate investors
- New models like coliving and build-to-rent are helping meet demand
Advice for Renters & Landlords on the State of Rent
For Renters:
- Research local trends and explore suburban areas for more options.
- Build positive relationships with landlords to secure renewal incentives.
- Review lease terms carefully, especially regarding increases and fees.
For Landlords:
- Implement small, steady rent increases to match inflation.
- Offer long-term lease perks to reduce turnover.
- Stay compliant with evolving landlord-tenant laws in your state.
Looking Ahead: 2025 Rental Trends to Watch
- Slower but steady rent increases driven by inflation and housing shortages.
- Affordability pressures continue in major metros and low-supply areas.
- Policy-driven changes could shape investor confidence and housing supply.
- Supply chain delays will impact new construction and pricing in hot markets.
- Shifting tariffs may impact material costs and availability for new construction and ongoing maintenance.
Want more detailed analysis and state-by-state breakdowns?
Understanding rent trends is essential whether you’re a landlord, renter, or real estate investor navigating today’s dynamic housing market.
Review all the market insight and download the full report: The State of Rent: Housing Affordability Trends Across the U.S
