Core Insights - The U.S. rental market has experienced a decline in rent prices for 24 consecutive months, indicating a significant easing of rental pressure [2][4] - A notable pullback in multifamily development is occurring due to rising construction costs and new tariffs on materials, which may lead to future rental supply issues [2][4][6] Rental Price Trends - The median asking rent for 0–2 bedroom properties in the 50 largest metros decreased to $1,712 in July, reflecting a $43 (-2.5%) drop year-over-year [3][12] - Although rent prices are $254 (17.4%) higher than pre-pandemic levels, they are $47 (-2.7%) below the peak reached in August 2022 [3][12] Multifamily Development - Multifamily completions for buildings with two or more units fell 38.1% year-over-year in June 2025, from an annual rate of 656,000 units to 406,000 [4][11] - The Midwest experienced the steepest annual drop in completions at -55.7%, followed by the South (-33.5%), Northeast (-33.0%), and West (-28.9%) [5][11] Permitting Trends - Local permitting trends indicate that developers are responding to increased construction costs and reduced profit margins by scaling back new project plans, signaling potential future supply constraints [6][8] - Significant declines in permitting were noted in various markets, including Orlando (-54.9%), Philadelphia (-28.1%), and San Antonio (-27.3%) [7][8] Future Market Dynamics - The current renter-friendly market may shift to a tighter, more competitive landscape if construction pullbacks continue [4][11] - Realtor.com® will monitor construction trends and policy changes to assess the evolving landscape for renters and developers [11]