🛝 Nationwide Apartment Rents Extend Slide as Policy Shifts Threaten Further
Declines
(Restrictions on international student admissions could deepen the slippage)
↘️ Nationwide rents for 0–2-bedroom apartments declined for the 22nd straight month in May, and Trump-era restrictions on international student admissions could worsen the trend, per Realtor.com’s May rental report.
🍁 Rents fell across all unit sizes:
Studios: -1.9% YoY
One-bedrooms: -2.3% YoY
Two-bedrooms: -1.7% YoY
Overall, rents are 3.1% ($54) below their 2022 peak.
🌹 In the 50 largest metros, median rent rose by $5 from April to $1,705—but remains $54 below the August 2022 peak.
↘️ Markets with steep rent drops since May 2019:
San Francisco: -3.2%
Minneapolis: +3.9%
Oklahoma City: +7.7%
Seattle: +7.9%
Denver & San Jose: +8.9%
🐢 Despite these gains, rent growth lags behind inflation. Only 9 metros beat it over the last 6 years:
Pittsburgh, Tampa, Miami, Indianapolis, Kansas City, Sacramento, New York, Jacksonville, St. Louis
🛠️ Tariffs on imported steel and aluminum (50%) could drive up construction costs and future rents in rapidly developing cities like:
Milwaukee
Oklahoma City
Cleveland
Memphis
Columbus
(all but Columbus saw YoY rent drops)
💲 “These rising material costs may increase rent pressures as developers either slow construction or pass costs to tenants,” the report noted—though impacts may lag.
💳 Visa restrictions on international students are expected to hit rental demand in markets with large foreign student populations:
San Jose
Miami
Boston
Seattle
Orlando
(Rent already dropping in all but San Jose)
💧 “A drop in foreign student enrollment may weaken talent pipelines and soften demand in high-growth industries,” the report stated. Federal workforce effects vary:
Washington, DC: +1.3% YoY
Baltimore: +0.3% YoY
San Diego, Virginia Beach, Oklahoma City saw sharper declines
🤝🏼 “These divergent trends reflect the push-pull between federal job cuts and return-to-office policies,” the report concluded.
