Mar 2025
Apartment rent growth improving: Midwest tops the market
According to a January 2025 RealPage blog post, U.S. apartment rent growth is expected to pick up in 2025, with the Midwest and parts of the Northeast set to experience stable rent growth thanks to little supply pressure and steady apartment demand. The post predicts a 3%-4% rent hike in these markets this year.
Similarly, a January 2025 report from CoStar predicts sunny expectations for the Midwest. In 2024, the Midwest and Northeast markets became rent growth leaders, owing in part to modest construction during the pandemic. The Midwest metropolitan areas were especially successful. According to the report, some of the cities with the most robust rent growth include:
- Detroit, Michigan
- Kansas City, Missouri
- Cleveland, Ohio
- Columbus, Ohio
These markets posted gains that were more than three times the national average.
The Motor City leads the way
Of the markets with at least 75,000 apartment units, Detroit dominated rent growth. CoStar reported that last year, the city’s apartment rents grew by 3.3%, three times more than the 2023 rate. Rent growth is expected to continue to rise and exceed 5% by the second half of 2025.
