MURFREESBORO, TN - Despite a backdrop of low unemployment rates, easing inflation, and a strong stock market, many Americans are grappling with the pressures of rising living costs, especially in the housing sector. According to a recent report by Construction Coverage, median rents in 2025 are projected to increase nationally by 4.8% compared to last year, with some areas experiencing spikes of 20% or more.
Murfreesboro has emerged as a notable area in this trend, ranking at number 6 on the list of the larger cities with the highest percentage of increasing rent prices. Data from the Department of Housing and Urban Development (HUD) and the U.S. Census Bureau show that the Nashville, Murfreesboro, Franklin Metropolitan Statistical Area has witnessed a 12.5% rise in rental costs, with the mid-level price of an apartment now around $2,036 per month—up from $1,810 last year.
While Murfreesboro’s rent increases are significant, they are eclipsed by even steeper rises in other parts of Tennessee. Knoxville, for instance, is facing a staggering 25% increase in rental prices between 2024 and 2025, translating to an average additional monthly cost of about $335. This means that a rental unit costing $1,675 in Knoxville now carries a higher price tag of $2,036 in Murfreesboro, a difference of $361 per month.
On a more optimistic note, not all areas are experiencing rent increases. Clarksville, Tennessee, has shown a slight decrease in rental prices, down 1.9% from the previous year, bringing the median rent to $1,521—$29 less than last year’s figure.
At the national level, states such as Rhode Island (-4.8%), Wyoming (-4.1%), and South Dakota (-4.0%) report some of the largest decreases in rent for 2025. The Santa Maria-Santa Barbara area of California is expected to experience the sharpest decline in the country, projected at -15.1%, following skyrocketing rent prices during the COVID-19 pandemic.
As for tenant preferences, studio apartments are anticipated to see the largest price hikes, while one-bedroom units also rise. Conversely, renters might find more value in larger units, particularly if costs are shared among roommates.
The overall rental landscape in Tennessee reveals a state median rent increase to $1,586 per month for 2025, marking a significant 10.7% year-over-year rise, making it the 4th steepest in the nation.
Despite the seemingly strong economy, many Americans are still feeling the financial strain, particularly from housing costs. Zillow data indicates that current median rents are approximately 35% higher than pre-pandemic levels, as escalating home prices and high mortgage interest rates push potential buyers into a competitive rental market.
Underlying these rental price trends is a long-standing shortage of available housing stock in the U.S. Owing to the aftermath of the Great Recession, many builders scaled back operations, leading to a significant underbuilding of housing during the 2010s. As a result, rental vacancy rates remain exceptionally low, leading to increased competition among renters for the limited available units.
As 2025 unfolds, the interplay between rising rents and economic conditions continues to present challenges for many households, underscoring the urgent need for solutions to the housing crisis in America.
