Rentec Direct’s State of Rent Report highlights national trends during Affordable Housing Month
The cost of renting a home in the United States has surged by more than 30% in just half a decade, according to a newly released report by property management software company Rentec Direct. Published in conjunction with National Affordable Housing Month, The State of Rent: Housing Affordability Trends Across the U.S. offers a stark, data-driven portrait of a housing market straining under the pressure of rising costs, uneven growth, and systemic supply issues.
The report draws on actual rent payment data from more than 300,000 rental properties and 350,000 tenants across all 50 states—offering a grounded look at what renters are truly paying, rather than the speculative figures tied to vacant listings. The numbers tell a sobering story: the average monthly rent in the U.S. reached $1,302 by the end of 2024, marking a 31% increase since 2019. The steepest rise occurred between 2021 and 2022, when pandemic-related rent freezes and tenant protections were rolled back, giving way to sharp spikes in monthly housing costs.
While the pace of annual rent increases has moderated slightly in the past year, the cumulative effect has left millions of Americans grappling with housing instability. From young professionals to fixed-income seniors, the rising cost of living continues to outpace wage growth in many parts of the country.
The report’s state-by-state breakdown highlights deep geographic disparities in housing affordability. Renters in Pacific Coast states—particularly California, Hawaii, and Washington—continue to face the nation’s highest rent burdens. On the opposite end of the spectrum, more affordable rents can still be found in parts of the South and Midwest, including West Virginia, Louisiana, and Minnesota.
However, even these so-called “affordable” regions are not immune to dramatic swings. Arizona, Tennessee, and New Mexico saw rent increases of over 65% in the last five years, a reflection of fast-growing populations, limited new housing supply, and weak regulatory controls. Minnesota was the only outlier in the report to post a significant rent decline—roughly 34%—a trend researchers attribute to recent land use reform and affordability measures aimed at increasing housing stock.
The analysis also explores the mechanics behind these numbers. Markets without rent control laws and those experiencing high in-migration are seeing the steepest rent escalations. As urban hubs continue to draw newcomers with job opportunities and lifestyle amenities, a mismatch between demand and available units is placing further upward pressure on costs.
The findings come at a time when many renters, housing advocates, and policymakers are calling for aggressive action to address the affordability crisis. Rentec Direct President Nathan Miller notes that the 31% jump in national rent prices is not just a reflection of market trends—it’s a signal that deeper structural challenges are affecting millions.
“As we look ahead to the second half of 2025, landlords should focus on long-term strategies for tenant retention and financial stability,” Miller said. “For renters, it may be time to explore more affordable suburban or rural markets or negotiate lease terms more proactively. We also urge lawmakers to pursue housing policies that improve supply and support balanced outcomes for both tenants and landlords.”
The 2025 State of Rent report includes a forward-looking outlook intended to help renters, property owners, and government officials navigate the increasingly volatile housing market. It outlines forecasted trends, including where rent increases are likely to continue, which regions may see stabilization, and what strategies stakeholders can use to adapt to shifting conditions.
Unlike many housing studies based on speculative data or listed prices for unoccupied units, Rentec Direct’s report is grounded in actual rent payments tracked through its network of landlords and property managers. This methodology offers a more realistic view of what people are paying each month, as well as how those payments have changed over time.
For housing advocates, the report adds to a growing chorus of concern over rental affordability. While the spotlight often shines on the home-buying market, renters make up more than one-third of all U.S. households—many of whom are increasingly priced out of once-affordable communities. Rising rent costs are also being felt locally in smaller markets like Grants Pass, where housing supply remains tight and new construction has not kept pace with population growth.
With economic uncertainty, inflation, and stagnant wages still looming in 2025, the need for actionable solutions is more urgent than ever. As the nation observes Affordable Housing Month, the data presented in Rentec Direct’s report underscores a fundamental reality: for millions of Americans, paying the rent has never been harder.
The full report, including state-level data and a 2025 housing market forecast, is available at:
https://www.rentecdirect.com/learn/research/rent-report-2025.