National Multifamily Report – July 2025
Rent growth moderates, but costs taper off as well. Read the report.
As we settle into the third quarter, the U.S. multifamily market is posting consistent results, according to Yardi Matrix’s latest survey of 140 markets. The average advertised asking rent grew $2 to $1,754 in July, marking a 0.7 percent improvement year-over-year. Occupancy held steady at the same level for four months, at 94.7 percent as of June, and down 0.1 percent year-over-year. The average advertised asking rates in the build-to-rent sector delivered stable results, going up $3 in July to $2,205, representing a 0.4 percent growth year-over-year.
On a year-over-year basis, Yardi Matrix’s top 30 markets were split evenly between metros that exhibited positive and negative rent growth. Markets in the Midwest and Northeast overperformed with Chicago being the front runner (4.1 percent), followed by Columbus (3.9 percent), Detroit (3.5 percent) and New Jersey (2.7 percent). Sun Belt metros continued to face rent compressions amid elevated completions, such as Austin (-4.6 percent), Denver (-3.9 percent) and Phoenix (-2.8 percent).
More than 300,000 units were absorbed nationwide during the first half of the year, keeping occupancy stable despite high supply.
Underperformers rebound, former hotspots cool off
The U.S. advertised asking rents trudged along with a 0.1 percent increase month-over-month in July. Certain markets that had previously led in rent growth, cooled mid-summer, including Kansas City (-0.7 percent) and Indianapolis (-0.4 percent). Other metros, which had previously underperformed, recorded positive rent movement, such as San Francisco (0.4 percent), Atlanta and Austin (each 0.3 percent).
While rent growth remained tepid, the increase in expenses has decelerated, possibly resulting in new projects being penciled out. Halfway through 2025, expenses per market-rate and affordable unit grew 1.3 percent and 1.7 percent, respectively. The figure peaked at 8.1 percent per unit in 2022 for market-rate properties and 8.4 percent for income-restricted communities in 2023. One of the driving forces behind expense growth was the insurance cost, which ballooned by more than 120 percent in both market rate and affordable properties since 2019.
Over in the build-to-rent sector, the national average advertised asking rates climbed $3 to $2,205 in July, up 0.4 percent year-over-year. Some of the steepest increases were recorded among Midwestern markets, with Chicago (5.9 percent) taking the lead, outperforming Harrisburg (4.9 percent), Columbus and Kansas City (each 4.8 percent).
BTR occupancy across the nation stood at 95.0 percent in June, down 0.3 percent year-over-year. A way of possibly attracting tenants involves on-site amenities, though communities would have to include at least 100 to 150 units for the added costs to pencil out, according to the National Rental Home Council.
Read the full Yardi Matrix multifamily real estate report.
