The U.S. rental market in 2025 is marked by rising prices, shifting demand, and widening affordability gaps. According to the latest reports from TenantCloud and Rentec Direct, landlords must navigate not only regional rent extremes but also evolving tenant payment habits and maintenance priorities. For property managers, these market shifts make thorough tenant screening more important than ever—helping you reduce risk, improve occupancy stability, and protect your investment.

National Rent Prices Continue to Climb

• TenantCloud reports the national average rent climbed 5% year-over-year, hitting $1,860/month in Q1 2025.
• Rentec Direct’s analysis of actual rent payments found the national average was $1,302/month in 2024, marking a 31% increase over the past five years.

While these figures differ due to methodology (advertised vs. actual rents), both agree: rents are significantly higher than just a few years ago. With affordability concerns rising, ensuring applicants have a proven history of reliable rent payments is critical. ZipReports’ tenant screening solutions provide quick access to credit reports, criminal history, eviction records, and income verification—giving you the confidence to approve tenants who are most likely to pay on time and treat your property with care.

Where Rents Are Rising—and Where They’re Falling

The rental market is far from uniform. Some regions are seeing record-setting rent hikes, while others are experiencing slight declines:

• Biggest Spike: Queens, NY, saw a staggering 39% jump in average rent this year.
• Regional Extremes: Arizona, Tennessee, and New Mexico experienced rent hikes above 65% over the past five years, driven by population growth and limited housing supply.
• Declines: Denver, CO, and Omaha, NE posted slight year-over-year declines, while Minnesota saw a 34% drop in average rent since 2019, largely tied to land use reform.

In competitive high-rent markets, strong screening can help you avoid costly turnovers by selecting tenants with stable employment, good rental histories, and solid references. In slower markets, it ensures you don’t sacrifice quality just to fill a vacancy.

Affordability Gaps Continue to Widen

The affordability divide is growing:

• Most Expensive: Hawaii, California, and Washington remain the costliest rental markets.
• Most Affordable: West Virginia, Louisiana, and Minnesota offer the lowest average rents.
• Secondary Market Growth: Columbus, OH, and Tampa, FL, are seeing steady demand as renters migrate from high-cost metros.

For landlords in growing secondary markets, the influx of applicants can be a double-edged sword. More interest means more applications to process—but it also increases the likelihood of screening applicants who may be stretching their budgets to secure housing. Using ZipReports’ screening tools can help ensure those new tenants are financially capable of sustaining their leases over time.

Shifting Tenant Payment Habits

Tenant behavior is evolving alongside the rental market:

• Digital Payments Dominate: 81.7% of rent payments are now made online, up from 78.4% last year. Features like autopay and rent reporting incentives are driving this trend.
• Late Payments Persist: Even with online convenience, 16% of tenants still pay late—by an average of six days.

By reviewing past payment histories, income-to-rent ratios, and eviction records, landlords can make informed decisions before signing a lease. Pairing screening with ZipReports’ landlord protection products and renters insurance helps reduce the financial impact if a tenant does default or cause damage.

Operational Insights for Landlords

Rising rents aren’t the only factor influencing landlord decisions:

• Maintenance Matters: Plumbing issues topped Q1 maintenance requests, followed by HVAC and appliance problems. Proactive maintenance can improve tenant satisfaction and retention.
• Retention Over Turnover: Turnovers cost landlords time and money, from lost rent to make-ready expenses. Screening for reliable tenants increases the odds of long-term occupancy and fewer vacancies.

Smart landlords are pairing market awareness with risk management tools like those offered by ZipReports to keep operations running smoothly.

Rental Market Outlook for the Rest of 2025

While rent growth has slowed from the 2021–2022 surge, many markets still face upward pressure due to limited supply. Remote work trends, demographic changes, and local housing policies will continue to shape where and how renters live.

For landlords, this means:

• Expect continued rent growth in suburban and secondary markets.
• Monitor local legislation around rent control and tenant protections.
• Leverage screening technology for faster, more accurate decision-making.

Protect Your Properties in 2025 and Beyond

As a rental property manager, a review of your applicant’s past can make all the difference—empowering you to make informed decisions about the future. ZipReports partners with an extensive network of industry providers to deliver critical background data instantly, helping you maximize quality control and safeguard consistent success.

From tenant screening and renters insurance to landlord protection products, our tools help you reduce risk, improve tenant quality, and protect your bottom line.

Get started today—contact ZipReports and get the data you need, when you need it, to make the smartest rental decisions in 2025.