New analysis from credit reporting agency TransUnion indicates the U.S. rental market showed signs of cooling in the final months of 2025. According to the firm's quarterly rental market report, the volume of rental applications submitted in the fourth quarter of 2025 fell by 10% compared to the same period in 2024.
The report, which analyzes millions of rental applications, suggests a softening in consumer demand. This decline in application volume coincided with a period where the national median asking rent saw minimal growth, increasing by just 0.3% year-over-year in the fourth quarter.
Experts cited in the analysis point to several factors that may have contributed to the slowdown, including sustained high rental costs relative to income and a potential increase in household formation slowing from pandemic-era peaks. The data indicates a shift toward a more balanced market after several years of intense competition for rental units.
While the drop in applications suggests easing pressure, affordability remains a significant challenge for many renters. The report notes that the financial strain on renters, as measured by metrics like the share of income spent on rent, persisted through the end of 2025.
