Rent Prices vs U.S. Inflation
Over the past decade, rent prices in the U.S. have increased rapidly, raising the pressing question: Is rent outpacing inflation? How much does rent increase per year? From sharp post-pandemic spikes to recent signs of stabilization, rent changes from 2015 to 2025 offer valuable insights into changes for renters, landlords, and policymakers alike.
In this article, we’ll analyze how rent has changed, looking at the average rent increase per year compared to general inflation, as well as how much rent has increased in the last 10 years generally. We’ll also discuss what this means for landlords and property managers responsible for pricing their units in the upcoming months and years.
But first, it will be helpful to understand the factors and variables that influence the rental market on a broad scale. What’s driving rent increases?
What Drives Rent Prices?
Rent prices generally rise due to a mix of economic pressures and market shifts. True declining rents are rare. Several clear factors go into play for what shapes inflation:
Supply & Demand
It’s classic supply and demand dynamics: Rapid population growth in dense metro areas, leading to high demand, and tight housing supply push rent higher year after year. In 2021, Freddie Mac found that rent inflation was fueled, in part, by a 52% increase in the housing stock deficit between 2018 and 2020—from 2.5 million units in 2018 to 3.8 million by 2020. Limited vacancy rates during the pandemic created upward pressure as more people competed for fewer units.
Remote Work Shifts
Remote work has also reshaped housing demand. The Federal Reserve Bank of San Francisco found that between late 2019 and 2021, an increase in remote work accounted for over 60% of the 24% rise in housing prices, and spurred rent prices as well. As workers migrated to areas with more affordable space, rental prices surged there, too.
Broader Inflation
Inflation across the economy contributes to rising rental costs as well. Rent makes up about 35% of the CPI, and rental inflation significantly affects living costs. Peoples Action reported a 6.3% rent increase in June 2022. We’ll have more to say about whether rents are aligning with broader inflation shortly.
Housing Market Pushback
High home prices have pushed more potential buyers into renting, particularly in the Millennial age group. As The Hamilton Project notes, fewer new multifamily units were built during the pandemic, which reduced vacancy and boosted rent inflation post-2020. When would-be buyers can’t secure affordable starter homes, the local rental market becomes saturated over time with more renters across a wider age range. More renters = more demand = higher prices.
Pandemic Rent Controls
Rent control is a factor that affects rent in multiple ways. Temporary policies like eviction bans and rent freezes during the pandemic at first dampened rent growth between 2020 and 2021. But when those policies expired, new-tenant rent indices jumped, as Apartment List’s National Rent Index began diverging sharply from CPI rent figures, signifying a catch-up in lease rates.
Understanding these rent cost drivers is vital for both landlords seeking rental income and tenants navigating today’s housing market.
A Decade of Rising Rent: 2015–2025
Now that we have a baseline understanding of the factors involved, how have these variables affected U.S. rent prices in the last ten years?
To assess long-term trends, we begin with the numbers. In the beginning of 2015, the median U.S. rent was approximately $1,350 per month, according to Zillow. As of June 2025, that number has jumped to around $2,100, rising by nearly 55% in just 10 years. This steady rise in rent is a reflection of post-pandemic price surges, but rent prices have consistently outpaced general inflation rates, marking a deep rooted supply and affordability issue in the rental market.
One way to measure housing inflation, used by the Bureau of Labor Statistics, is the Consumer Price Index (CPI) for rent of primary residence. From January 2015 to May 2025, the CPI for rent of primary residence rose from 281.572 to 433.698, marking an increase of approximately 54.0% over the ten-year period. That’s about a 5.4% increase per year, which stands higher than general inflation which averages at about 2-3% annually.
Rent prices have risen extensively nationwide. The CPI's 54% climb shows that even tenants who stayed in place have seen substantial rent inflation. It's a warning of systemic housing affordability strain.
How Much Does Rent Increase Per Year?
Over the past 10 years, the Consumer Price Index (CPI) for Rent of Primary Residence rose 54.0% between January 2015 (281.572) and May 2025 (433.698). This means on average, rent increased about 5.4% per year between 2015 and 2025.
Here’s a breakdown of typical rent increase per year by era:
- 2010–2019: Steady increase of about 10.4%
- 2020–2021: Rent growth slowed during the early pandemic, dipping in some cities like New York and San Francisco.
- 2021–2022: After the pandemic, national rent prices surged by an average of 17% to 18%, with hotspots like Florida and seeing spikes above 25%.
- 2023–2024: Growth slowed to 3%–5%, but rents remained well above pre-pandemic levels.
- 2025: So far this year, single-family rents have risen by 2.8%, and multifamily rents have increased by 1.6%. There are signs of rent prices cooling in 2025 from previous years, according to Zillow.
As you can see, the fastest and steepest rent growth occurred in 2021-2022, fueled by post-pandemic demand, low vacancy rates, and a demand surge following lockdown. Today, while rent increases have slowed, landlords still benefit from historically high rent baselines and strong demand in many markets. This cooling trend offers an opportunity to focus on tenant retention, long-term lease stability, and value-added upgrades to remain competitive.
It’s also worth noting that while 5.4% is the average rent increase per year, there was considerable variation between 2015 and 2025, as you can see in the breakdown above. Rent jumped substantially in some years and grew more in line with general inflation in others. Rents fluctuate based on supply, demand, location, and broader economic considerations. The post-pandemic period has reshaped many of these expectations due to unexpected factors like policy change and economic uncertainty.
Rent Growth vs. Income and Cost of Living
Cost of living plays a critical role in shaping how tenants experience rent increases. When housing costs rise faster than wages or everyday expenses, renters feel the squeeze more acutely. Comparing rent growth to income and cost of living trends helps reveal whether increases are manageable—or pushing tenants beyond their means.
Over the past five years, rent prices have surged significantly faster than household incomes. Apartment rents have climbed by 29%, while single-family rentals have seen an increase of over 41%. Meanwhile, household incomes have risen at a much slower pace during the same period: From 2019 to 2023, the median household income in the U.S. only rose from $68,700 to $80,610, an increase of only 17%. This disparity has intensified rent affordability issues, particularly for tenants in high-demand cities nationwide. Financial strain is evident as many renters now allocate more than 30% of their income to housing, according to the United States Census Bureau.
The increasing cost of living compounds these challenges, with essentials like groceries and energy prices also rising. According to the USDA Economic Research Service (ERS) June 2025 Forecast,
- Overall food prices in the U.S. are expected to rise 2.9% in 2025.
- Prices for food-at-home (e.g., groceries) are expected to increase 2.2%.
- Prices for food-away-from-home (e.g., restaurants) is expected to increase 3.9%.
A similar story can be told for energy:
- The nominal U.S. average electricity price is expected to increase by 13% from 2022 to 2025, according to the U.S. Energy Information Administration.
- Over the past year, the average consumer saw electricity prices rise 4.5%.
These economic conditions are further squeezing disposable incomes, leaving renters with less financial flexibility to manage escalating rental rates. Currently, over 21 million renters are considered cost-burdened. This issue disproportionately affects certain demographics, including younger individuals, minorities, and single-parent households.
Without initiatives for wage growth, increasing housing supply, or implementing policy changes such as rent stabilization, the trend of rising rent prices is expected to persist. Landlords and real estate investors should keep these trends in mind as they price rentals in order to stay competitive in their markets.
Shelter Inflation and Regional Rental Trends
Shelter inflation refers to the rising costs associated with housing, including both rent and utilities for tenants as well as the estimated rental value of owner-occupied homes. The cost of shelter plays a significant role in driving overall inflation in the United States and serves as a broad metric for the cost of living in different U.S. regions.
As of 2025, shelter accounts for roughly 35% of the CPI, and rent for primary residence contributes about 7.5% of the total index. Even as general inflation begins to cool from its peak in 2022–2023, shelter inflation has remained persistently high, with shelter costs rising 3.9% year-over-year compared to 2.8% for core inflation.
This disproportionate rise in shelter costs has continued to place upward pressure on the CPI, complicating efforts to curb inflation. For renters, especially in high-demand markets with rent-controlled cities, this stickiness translates into mounting housing costs even as other living expenses stabilize.
Rent increases aren't uniform across the country, or even across property types. Single-family rental homes have seen steeper rent hikes than multifamily apartments, primarily due to higher upkeep costs, rising insurance premiums, and intensified demand in suburban areas. As remote work reshaped housing preferences, many tenants sought out larger, standalone homes, contributing to localized rent surges and rent increment scenarios.
Geographic disparities are also significant. Between 2019 and 2024:
- Arizona rent prices rose 84%.
- California rent saw an increase of 34%.
- States like Florida, Texas, and Colorado posted above-average rent inflation driven by inbound migration, population growth, and supply constraints.
However, in some of the country's largest and historically most expensive cities, urban rent growth has slowed or even reversed slightly. San Francisco and Seattle, for example, have seen rent levels plateau or decline modestly as demand dispersed and construction caught up in select areas.
What’s Next for Rent in the U.S.?
Looking ahead, experts forecast modest rent increases through the remainder of 2025, likely staying in the 2–4% range, assuming stable interest rates and consistent economic growth.
National single family rent growth is projected at 3.23%, and multifamily rent should rise by around 2.08%. according to Zillow.
For landlords, these projections suggest a stable rental market with opportunities for incremental income growth, especially for those in markets with steady demand and limited new construction. However, landlords should tone down expectations of rapid rent hikes and focus on retention strategies, operational efficiency, and property maintenance to stay competitive.
Affordability also sets your properties apart from others. In markets where rents have significantly outpaced local incomes, reasonably priced units tend to attract more applicants quickly. This competitive edge benefits landlords, but keep in mind the importance of tenant screening. A larger applicant pool may increase interest, but it also demands careful vetting to ensure reliable occupancy.
Factors that could further moderate rent inflation include:
- Increased housing supply
- Stabilizing mortgage rates
- Slower wage growth
- Continued regulation in high-cost cities
However, if construction lags, inflation resurges, or other unexpected factors arise, the average rent values may trend upward again in urban and suburban markets.
Conclusion
As can be seen by the data above, rent prices have consistently outpaced general inflation over the past decade, widening the gap between housing costs and household incomes. This trend, fueled by limited housing supply, post-pandemic market shifts, and economic pressures, has deepened affordability challenges across the U.S.
While 2025 shows signs of stabilization, rent increases still strain many households. For landlords, understanding these pressures helps inform more sustainable rent pricing strategies. Prioritizing tenant retention, staying competitive with local markets, and anticipating shifts in housing supply and wage trends are important tactics for long-term success in a changing market.
FAQs
What is the average rent increase per year?
Between 2015 and 2025, the average rent increase was between 4 and 6% per year. Based on CPI numbers, this average falls at around a 5.4% increase per year. However, there isn’t really a “typical rent increase,” since the answer depends on the specific time frame you’re looking at as well as the lease type (e.g., month-to-month leases). Rents raised much slower in the pandemic, for instance.
How much does rent increase per year for SFHs vs apartments?
Compared to pre-pandemic levels, rents for SFHS have increased 41%, while rents for multifamily units have risen only 26%, according to a recent press release from Zillow. On average, single-family homes cost about $350 more per month to rent than apartments, and their rates rise faster.
How much has rent increased in the last 10 years?
Rent has increased between 30% and 60% nationally in the last ten years (2015 to 2025). However, estimates vary depending on how average rent is measured. According to data from Zillow, rent has increased nearly 37% in the last ten years, while data from iPropertyManagement indicates up to a 66% increase.
How much has rent increased in the last 3 years?
Rent in the U.S. has increased around 23% in the last three years (2012 to 2025), according to data from iPropertyManagement. However, estimates vary depending on how average rent is measured.
