Top 10 Emerging Multifamily Markets of 2025

The U.S. multifamily sector posted steady performance in 2024, while dealing with a series of challenges, but some emerging markets still popped up. Rent growth was steady, but varied significantly across the country, driven by robust stock expansion in certain metros. U.S. employment growth maintained a 1.3 percent increase year-over-year in December, which is a slower pace than previous years, but still a healthy rate. 

Moderate activity is anticipated for the multifamily market in 2025. Short-term interest rates are expected to move less than originally hoped in 2025, as economic pressures due to international trade continue to cause uncertainty. This will likely keep transaction activity low. Meanwhile, stock growth will remain robust, with new construction subdued to the economic landscape.  

Using Yardi Matrix data, we’ve looked at smaller markets that have forged their path to growth through this irregular terrain, recording exceptional performance last year and pointing to sustained growth moving forward. The data points we used were employment, deliveries, construction pipeline and occupancy, as well as investment metrics. Each of these metrics was assigned a final score, which created our ranking. Here are the U.S.’s top 10 emerging multifamily markets in 2025. 

Key highlights 

• The top 10 emerging markets in 2025 are each from a different state. The Sun Belt area continues to lead, accounting for the bulk of the metros in this ranking.  

• Occupancy fell in all but three metros: Lexington, Ken., Columbia, S.C. and North Central Florida, but increases were minor, up by 0.4 percent; three metros recorded declines of at least -1.0 percent—Central East Texas, Tucson, Ariz. and Madison, Wis.  

• Occupancy was above the 95.0 percent mark in six metros, with the highest in Lafayette, Ind. (98.0 percent) and White Plains, N.Y. (97.0 percent). The lowest occupancy rates were posted by Tucson (92.0 percent) and Central East Texas (93.0 percent). 

• North Central Florida, Madison and White Plains led by volume of units delivered in 2024, as well as by volume of units under construction as of December.  

• The highest average PPUs were registered in White Plains ($389,786) and Tucson ($307,287), while Columbus ($81,631) was the most affordable. Increases from 2023 ranged from 18.4 percent in North Central Florida to 131 percent in Tucson and 276 percent in Lafayette.  

1. Tucson, Ariz.

The only metro on our list from the western region, Tucson is our emerging market in 2025. With a population below one million and having the University of Arizona as one of its main economic engines, Tucson’s appeal to businesses and residents is enduring. Still, employment growth was slow compared with the metros in this ranking, up only 0.7 percent in 2024, and below the 1.3 percent U.S. average.  

Following a 1.2 percent decline year-over-year, Tucson’s occupancy rate in stabilized properties was the lowest among the metros in this list, at 92.0 percent in November 2024. Meanwhile, the national occupancy rate remained unchanged at 94.7 percent. Developers delivered 2,323 units across the metro in 2024 and had another 2,441 in the construction phase.  

Investment activity ranked second in this group by price per unit growth and value, as well as transaction volume. The per-unit price rose by a hefty 131.4 percent to $307,287, trailing in growth rate Lafayette’s 275.5 percent year-over-year increase, and in value White Plains’ $389,786 per-unit average. Meanwhile, the U.S. rate inched up 3.3 percent to $193,187. 

2. White Plains, N.Y.

White Plains’ multifamily fundamentals continued to improve, with much of its growth sustained by spillover from nearby New York City. NYC’s notable performance in 2024 helped boost White Plains back into the top emerging markets ranking, as the metro previously ranked fourth in 2023. Employment growth was up 1.4 percent in November 2024, 10 basis points above the U.S. average and 30 basis points below the New York rate. 

With the occupancy rate high at 97.0 percent in November, following a minor 0.3 percent year-over-year decline, White Plains’ multifamily rental market remained tight, surpassed only by Lafayette (98.0 percent). With 3,455 units delivered in 2024, the metro ranked third in this group, behind Madison and North Central Florida, while the construction pipeline placed it in the first position with 6,885 units underway as of December 2024.  

White Plains led this group for average price per unit, at $389,786, and sales volume, which totaled $359 million last year. The per-unit price increased by 34.3 percent year-over-year, and while it was the third lowest in this list, it is a tenfold increase from the 3.3 percent gain posted by the national rate, to $193,187.

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3. Madison, Wis. 

Wisconsin’s capital was third among our top emerging markets, losing out on the top position it held last year. Despite solid performance, the local economy saw job growth declining, even if just 0.1 percent, while all other metros in this group added jobs, and the U.S. average stood at 1.3 percent.   

The metro’s occupancy rate posted the largest decline among the markets in this group, down 1.4 percent year-over-year in November, which was needed considering the rate remained at a healthy 96.0 percent. Madison’s stock expanded by 3,531 units in 2024, behind only North Central Florida, and ranked third by construction pipeline with 5,008 units, behind North Central Florida and White Plains. 

Investment activity was limited to $72 million in multifamily assets. The price per unit rose by 38.6 percent to $154,100, well above the 3.3 percent U.S. rate, but more affordable compared to the $193,187 U.S. figure.

4. Central East Texas 

Central East Texas is defined in the Yardi Matrix platform as the region between Dallas-Fort Worth and Austin, including Waco, College Station and Temple. The corridor between DFW and Texas’ capital has strong growth across multifamily fundamentals on either end, so its appearance in our list of emerging markets is expected. The employment market expanded in Central East Texas by 1.6 percent in 2024, on par with Austin and Dallas, and 30 basis points higher than the national rate. Furthermore, it was 30 basis points below the highest growth rate recorded among the metros in this group (Lafayette, up 2.0 percent).  

The occupancy rate declined by 1.0 percent to 93.0 percent in 2024, well below the U.S. average, unchanged at 95.0 percent in November. Central East Texas posted the third largest decline in this group, behind Tucson and Madison. Meanwhile, 1,371 units were delivered in 2024, and 3,535 units were underway as of December.   

Central East Texas occupied a mid-position in this ranking, by both investment volume—totaling $145 million and price per unit growth—up by 55.1 percent. The increase was well above the 3.3 percent national average uptick, but the average per-unit price was at $132,642, considerably lower than the $193,187 U.S. figure. Among the metros in this list, it had the second lowest average, only outpacing Columbus ($81,631).  

5. Knoxville, Tenn. 

Other Tennessee markets, such as Chattanooga, have been in and out of our top 10 emerging multifamily markets list, but Knoxville has made good progress, up from eighth and ninth, to fifth spot. Employment growth was up 1.8 percent in 2024, 50 basis points above the national rate, registering the second-highest gain among the metros in this group.     

Knoxville’s occupancy rate in stabilized properties kept up with incoming stock, down by just 40 basis points year-over-year in 2024, to 96.0 percent. Deliveries amounted to 2,366 units, while the pipeline remained strong with 4,575 units under construction as of December.  

Knoxville’s price per unit had one of the smallest increases among the metros in this group, up 29.2 percent year-over-year, which is substantially higher than the 3.3 percent national average. Still, at $270,948 the metro’s average was well above the $193,187 U.S. figure. Compared with the other markets in this list, Knoxville’s per-unit price ranked third highest.  

6. Lexington, Ky. 

While Lexington marked the first appearance in this ranking, it is not the first Kentucky market to make our list of top emerging multifamily markets—in 2023, Louisville held the sixth spot, where Lexington currently stands. The metro posted steady economic progress, with the employment rate up 1.6 percent in 2024, 30 basis points ahead of the U.S. average. The local economy boasts a strong manufacturing sector, holding more than 700 manufacturing facilities, including Toyota’s largest plant.  

Stock expansion was limited to just 976 units in 2024, which pressured the occupancy rate, up 0.4 percent to 96.0 percent, outperforming the national metrics. Lexington’s occupancy increase was also the highest among the entries on this list. The construction pipeline had 1,698 units underway.  

Lexington’s average price per unit marked a remarkable 95.0 percent jump to $135,662 in 2024, dwarfing the 3.3 percent increase nationally, but still well below the $193,187 U.S. figure. It was the third lowest in this group, higher than Central East Texas ($132,642) and Columbus ($81,631). Transaction volume totaled $186 million, ranking fourth.  

7. North Central Florida 

Defined as the region between Orlando and Jacksonville, Fla., including Palm Coast, Daytona Beach, Ocala and Gainesville, North Central Florida is one of our 10 emerging multifamily markets. The area’s growth is supported by the robust performance recorded by the two Florida markets and follows the spillover pattern present also in areas close to Miami and Tampa. This pattern has boosted Florida in the ranking for the third consecutive year, each time with different satellite areas. Employment growth in North Central Florida was up 1.2 percent in 2024, just 10 basis points below the national rate. 

Developers completed 3,616 units in 2024, the highest volume in this group, while the occupancy rate inched up 0.1 percent to 94.0 percent in November. At the end of 2024, the construction pipeline comprised 5,171 units, trailing only White Plains in this grouping.  

Investors traded $115 million in multifamily assets in 2024, for a price per unit that gained 18.4 percent to $186,715, just below the $193,187 national average. It ranked lowest in this cluster for price growth but was well above the 3.3 percent U.S. rate.  

8. Columbia, S.C. 

South Carolina maintained a presence in the 2025 list, after last year Augusta and Greenville had both made it to our ranking. Columbia is 70 miles northeast of Augusta, connected by Interstate 20, and 100 miles from Greenville on Interstate 26, closing a triangle of strong performing metros between Atlanta and Charlotte, N.C. Employment growth in Columbia rose 1.6 percent in 2024, outperforming the national average by 30 basis points, while surpassing Atlanta and trailing Charlotte.  

With just 962 units delivered in 2024, occupancy gained 40 basis points to 94.0 percent in November, below the national average, unchanged at 95.0 percent. Construction activity was robust, with 2,805 units underway in December.  

Multifamily sales amounted to $208 million in 2024, while the price per unit jumped by 59.0 percent to $180,117. The average was still $13,000 lower than the U.S. figure, which inched up 3.3 percent to $193,187.  

9. Columbus, Ga.  

Columbus made its first entrance in our list of emerging multifamily markets. The second most populous city in the state of Georgia, it is located 110 miles southwest of Atlanta via Interstate 85. Columbus is also the first metro in the state to enter our series in four years. Job growth was up 1.5 percent, above the 1.3 percent national average.  

The 1,107 units delivered in 2024 were substantial for the metro’s occupancy, which slid 0.2 percent to 95.0 percent in November. Developers had only 932 units under construction in December, making Columbus one of the few metros with a lower construction pipeline than annual deliveries. It also posted the lowest volume among the metros in this list.  

Investment activity in Columbus was nearly nonexistent, with just $12 million trading in 2024. The metro had the most affordable per-unit price on the list, as even following a steep 86.0 percent increase, it clocked in at $81,630, less than half the $193,187 U.S. average.  

10. Lafayette, Ind. 

Lafayette made its first appearance in the emerging markets ranking this year. The smallest of all, it stretches some 60 miles northwest of Indianapolis and 125 miles southeast of Chicago. The metro benefitted from the strong performance posted by Midwestern markets, landing it in the tenth position in this cluster. Lafayette’s employment rate rose 2.0 percent in 2024, 70 basis points above the U.S. rate, as well as the highest among the metros in this cluster.   

Registering a 0.4 percent year-over-year decline, the occupancy rate remained high at 98.0 percent in November. While deliveries were low, with just 365 units coming online in 2024, the construction pipeline was robust for its standards, with 1,135 units underway. 

The investment volume totaled $62 million, which was the second-lowest volume in this group. Yet, its price per unit marked an incomparable increase, up 276 percent to $198,543, while the national rate gained 3.3 percent to $193,187.   

Working with Yardi Matrix data, we first filtered out all metros with 2 million or more residents. Then, we decided on a series of significant data points that would separate the best-performing markets from the rest. We looked at the increases in the average per-unit price for transactions closed in 2024 through December compared to the same period of the previous year, at how the employment market performed year-over-year, as well as the number of units completed in 2024 and the number of apartments underway as of December. We then compared the markets based on the performance of these data points and eventually assigned them a final score.