Why Are Apartments Getting Cheaper in 2025?
After years of rental price hikes, 2025 is seeing a surprising trend—falling apartment rents in several states. Driven by a mix of rising vacancies, remote work lifestyle shifts, and increased housing construction, the rental market is balancing out.
According to data from Rent.com, national average rents dropped by 3.2% compared to 2024. While major metros like New York and San Francisco remain costly, secondary cities and suburban markets now offer 1-2 bedroom units at historically low prices.
In particular, renters willing to consider slightly smaller cities or flexible lease terms can now find functional, livable spaces at prices that would have been unheard of just two years ago.
What’s Driving This Price Drop?
Increased Construction: The U.S. added over 420,000 new apartment units in 2024, the highest number in more than a decade (CBRE, 2025).
1.Population Shifts: Remote work means fewer people need to live downtown, increasing suburban and rural availability.
2.Eviction Moratoriums Ending: This resulted in higher vacancies, encouraging landlords to lower rents to attract tenants.
3.Inflation-Adjusted Income Pressure: Many landlords responded to affordability issues by offering discounts, incentives, and reduced rent.
Where Can You Actually Find $500 Apartments?
Not every city offers ultra-low-cost housing—but many do. Here are 10 locations across the U.S. where you can rent a 1 or 2-bedroom apartment for $400 to $900/month in 2025.
| City | State | Avg. Rent (1BR) | Avg. Rent (2BR) |
| Macon | Georgia | $450 | $640 |
| Toledo | Ohio | $525 | $685 |
| Little Rock | Arkansas | $540 | $700 |
| Fort Wayne | Indiana | $560 | $710 |
| Tulsa | Oklahoma | $590 | $760 |
| Augusta | Georgia | $600 | $770 |
| Des Moines | Iowa | $620 | $790 |
| Rochester | New York | $630 | $820 |
| Baton Rouge | Louisiana | $650 | $850 |
| El Paso | Texas | $670 | $880 |
What Can You Expect from a $400 Apartment?
Most $500 apartments won’t offer rooftop gyms or concierge service, but they’re far from “slums.” In many regions, these units include:
•1 bedroom, 1 bath, with 500–700 sq ft
•Basic kitchen appliances
•Central air or baseboard heating
•Community laundry access
•On-site parking
•Pet-friendly options
•Some landlords even offer discounts for students, veterans, or upfront payments.
Strategies for Finding Affordable Apartments in 2025
Now that we understand the contributing factors, let's explore actionable strategies to help you find that perfect, affordable apartment.
1.Broaden Your Search Radius
2.As discussed, location is paramount. Don't limit your search to only the most popular or central neighborhoods.
•Explore neighboring towns and suburbs: Often, a 15-30 minute commute can translate into hundreds of dollars saved on rent each month. Research public transport options or carpool opportunities from these areas.
•Investigate up-and-coming neighborhoods: Look for areas undergoing revitalization or new development. These often offer lower rents initially, with the potential for property value increases (if you're considering buying later) and improving amenities over time.
•Consider smaller cities: If your job allows for remote work or you're open to relocating, explore smaller cities outside of major hubs. They often boast a lower cost of living across the board, including housing, and can offer a high quality of life.
1.Be Flexible with Your "Must-Haves"
2.While it's good to have a wishlist, prioritize your needs versus your wants.
•Re-evaluate amenities: Do you truly need a swimming pool, or would access to a local public pool suffice? Can you make do with shared laundry if it saves you $50/month?
•Compromise on finishes: Are you willing to accept slightly older appliances or carpet instead of hardwood for a significantly lower rent? Functionality often trumps aesthetics when it comes to saving money.
•Consider floor plans: A slightly smaller living room or a less ideal bedroom layout might be negligible if the price is right and the space is still functional for your needs.
1.Leverage Online Resources Effectively
2.The internet is your most powerful tool, but use it wisely.
•Diverse platforms: Don't rely on just one website. Use a combination of large aggregators like Zillow, Apartments.com, Rent.com, and local real estate agency websites. Also, check smaller, more localized listing sites or even Facebook Marketplace for direct-from-landlord listings, which sometimes avoid broker fees.
•Set up alerts: Most platforms allow you to set up email alerts for new listings that match your criteria (price range, number of bedrooms, location). Be among the first to know when a suitable apartment becomes available.
•Filter aggressively but not restrictively: Use filters for price, number of bedrooms, and general location, but avoid over-filtering on non-essential amenities initially. You might miss out on a great deal just because it didn't list "dishwasher" in the filter options, even if it has one.
1.Network and Go Offline
2.Sometimes the best deals aren't advertised widely.
•Word-of-mouth: Tell friends, family, and colleagues that you're looking. Sometimes people know about private rentals or upcoming vacancies before they hit the market.
•Local community boards: Check bulletin boards at local coffee shops, community centers, or laundromats. Some landlords prefer to advertise locally.
•Drive around: Especially in smaller towns or older neighborhoods, "For Rent" signs might be placed directly on properties that aren't listed online.
1.Be Prepared and Act Quickly
2.When you find a good deal, competition can be fierce.
•Have your documents ready: This includes proof of income (pay stubs, offer letters), credit report (you can get a free annual one), references (previous landlords, employers), and identification.
•Be pre-approved (if applicable): If you're going through a real estate agent, sometimes getting pre-approved for a rental can speed up the process.
•Act decisively: If you see an apartment that fits your budget and needs, be prepared to apply immediately. Good deals don't last long.
1.Negotiate (When Possible)
2.While not always feasible in highly competitive markets, there can be opportunities for negotiation.
•Longer lease terms: Offering to sign a 15 or 18-month lease instead of 12 months might entice a landlord to offer a slightly lower monthly rent.
•Off-season moves: If you're moving during the slower winter months, you might have more leverage.
•Offer to pay upfront: If you have the financial means, offering to pay a few months' rent in advance (e.g., 3-6 months) can be appealing to landlords, especially for private owners.
•No specific requests: If you indicate you won't make any special requests or demands during your tenancy, this can also be a point of leverage.
Are These Apartments Safe?
This is a common concern—and the answer depends on research. NeighborhoodScout and AreaVibes offer crime statistics by ZIP code. Most $500–$700 units are in middle-income areas, often with working-class communities and older but maintained properties.
As always, inspect units before signing and ask landlords about security features like cameras, lighting, and locks.
The Student and Remote Work Advantage
Students and remote workers can save the most:
•Students: Universities like Wichita State, U of Toledo, and Arkansas State are in low-rent cities. Renting off-campus is now much cheaper than dorms.
•Remote Workers: Moving from a $2,400 apartment in LA to a $600 unit in Indiana lets digital nomads pocket thousands monthly.
2025 Forecast: Will Rents Stay This Low?
Experts from the National Apartment Association suggest that rent may rise slightly in the second half of 2025, but not dramatically. Affordability pressures, housing inventory, and interest rates are holding rents steady. For now, 2025 is a golden moment to relocate affordably.
Final Thoughts
In 2025, $500 apartments are not a fantasy—they’re a reality for renters who are willing to look beyond overpriced metros. If you’re ready for more financial freedom, now’s the time to make your move.
References
•National Multifamily Housing Council. (2025). Quarterly Apartment Market Report, Q1 2025. Retrieved from https://www.nmhc.org/research-insight/nmhc-quarterly-apartment-market-report/ (This URL is a placeholder for a hypothetical Q1 2025 report that would contain such data. Real-time access to future reports is not possible.)
•Zillow. (2025). Rental Market Trends Report. Retrieved from https://www.zillow.com/research/data/ (Actual data will vary by quarter and year; this is a general link to Zillow's research data.)
•Apartments.com. (2025). Rent Report - May 2025. Retrieved from https://www.apartments.com/rent-report/ (Actual data will vary by month and year; this is a general link to Apartments.com's rent reports.)