National Multifamily Report – April 2025
The U.S. occupancy rate clocked in at its lowest level in more than a decade, according to Yardi Matrix.
The U.S. multifamily market continued to exhibit moderate growth at the start of the second quarter of 2025, according to Yardi Matrix’s latest survey of 140 markets, sustained by a combination of a robust labor market and a weak home sales market. The average advertised asking rent increased by $5 to $1,736 in April, for a 0.9 percent year-over-year growth. The national occupancy rate in stabilized properties slid to 94.4 percent in March, the lowest level in more than a decade. Meanwhile, the single-family build-to-rent advertised asking rates rose $5 to $2,178 in April, and the occupancy rate fell 0.6 percent year-over-year to 94.8 percent in March.
Rent growth remained highest in markets in the Northeast and Midwest, led by New York City (5.8 percent), Columbus (3.7 percent), Philadelphia (3.6 percent), Kansas City (3.5 percent) and Chicago (3.3 percent). Markets in the Sun Belt continued to pose negative rent growth, led by Austin (-5.6 percent), Denver (-3.9 percent), Phoenix (-3.1 percent), Dallas and Orlando (both -2.1 percent). High supply kept the occupancy rate either flat or dropping for almost three years, at 94.4 percent, which marked the lowest rate since November 2013. Four metros posted occupancy rates below 93 percent: Austin (92.5 percent), Houston, Atlanta and Dallas (each 92.6 percent).
New leaders in short-term rent growth
Advertised asking rents rose 0.3 percent on a month-over-month basis, up by 0.2 percent in Lifestyle and 0.3 percent in Renter-by-Necessity. Overall, six of the top 30 Yardi Matrix metros posted rent declines. Short-term rent performance was led by Raleigh (1.0 percent overall, 1.0 percent in Lifestyle and 0.5 percent in RBN), followed by Columbus (0.9 percent), Boston and Indianapolis (both 0.8 percent) and Philadelphia (0.7 percent).
Multifamily market’s fundamentals remain healthy, but the economic uncertainty caused by tariffs continues to keep down CRE deal flow and development. Borrowers prefer floating-rate loans because they expect the Federal Reserve to hold short-term rates steady, while longer-term rates are volatile. In addition, developers are concerned about labor and rising costs, and at the NMHC Spring Meeting, they estimated that total construction costs would rise 1 percent to 2 percent. Yardi Matrix anticipates a slowdown in completions, which will allow rent growth to return in the 3 percent to 4 percent range from 2027 to 2030.
Single-family build-to-rent advertised asking rents rose $5 to $2,178, sustained solely by a 1.9 percent year-over-year increase in RBN, while Lifestyle fell 0.4 percent. Similar to the multifamily sector, metros in the Sun Belt posted negative rent growth, occupying nine out of the bottom 10 positions. Rent growth in Austin fell by 4.4 percent year-over-year, and is forecast for 1,353 new units (0.4 percent of stock) in 2025; Phoenix rents fell by 3.2 percent and is forecast for 7,144 units (1.9 percent of stock); Dallas rents fell 2.1 percent and is forecast for 3,164 units (0.3 percent of stock). National completions are anticipated to moderate in the coming years, down by 44.5 percent in 2027 compared to 2025.
Read the full Yardi Matrix multifamily real estate report.
