National Multifamily Report – March 2025
Asking rents rose across every major property type, but some cities saw steep decreases.
The U.S. multifamily market ended the first quarter of 2025 on a steady trend, according to Yardi Matrix’s latest survey of 140 markets. The average advertised asking rent gained $5 in March to $1,755, up 1.0 percent year-over-year and 0.4 percent over the first quarter. The national occupancy rate remained at 94.5 percent for the third straight month. Single-family build-to-rent rates also rose by $5 to $2,169, and occupancy continued unchanged year-over-year, at 94.7 percent in February.
Rent growth was strongest in New York City (5.5 percent), Chicago and Kansas City (both 3.7 percent), Columbus (3.5 percent) and Philadelphia (3.2 percent). The weakest rent performance was posted by Austin (-5.4 percent), Denver (-3.6 percent) and Phoenix (-3.0 percent), each with supply growth higher than 5.0 percent of existing stock over the past year. Occupancy increased in eight of Yardi Matrix’s top 30 metros, led by San Francisco and Las Vegas (both 0.3 percent) and Los Angeles (0.2 percent).
On a monthly basis, advertised asking rents rose 0.3 percent in March, sustained by a 0.3 percent increase in Lifestyle and a 0.2 percent uptick in Renter-by-Necessity. Chicago posted the highest month-over-month increase (0.9 percent), followed by Charlotte (0.8 percent overall, 0.9 percent in Lifestyle and 0.4 percent in RBN) and Seattle (0.8 percent overall, 1.1 percent in Lifestyle and 0.3 percent in RBN). Meanwhile, rent fell in six of the top 30 metros, with the steepest drops in Phoenix, Miami and Austin (all down 0.5 percent).
Opportunities and concerns for the U.S. multifamily market
The second Trump administration imposed measures that will have positive and negative effects on the U.S. multifamily market. Opportunities include building housing on 500 million acres of federally owned land. HUD officials will launch a joint task force with the Interior Department to identify suitable land for residential development and promise to build faster by reducing environmental and other reviews that typically lead to construction delays.
Another potential constructive policy is the renewal of Opportunity Zones, as the current program is set to expire at the end of 2026. Concerns arise from new policies that might cut programs that help build affordable housing, as well as the proposed privatization of government-sponsored enterprises Fannie Mae and Freddie Mac, which account for more than 40 percent of multifamily loans. Furthermore, economic volatility is high due to the imposition of tariffs, the rising number of layoffs and dwindling consumer confidence.
Single-family build-to-rent advertised asking rents rose $5 to $2,169 in March, while year-over-year growth remained flat. Rent gains were recorded only in the Renter-by-Necessity segment, up 2.3 percent year-over-year. SFR-BTR fundamentals have been decelerating from the February 2022 peak, when rents increased 15 percent year-over-year. Similar to the multifamily rental market, SFR rent growth was strongest in the Midwest, checking more than half of the top 10 metros for SFR growth in March, including Kansas City (5.4 percent), South Dakota (5.1 percent), Detroit (4.9 percent), Columbus (4.5 percent), the Twin Cities (3.4 percent) and Chicago (2.7 percent). The U.S. occupancy rate remained unchanged year-over-year at 94.7 percent in February.
Read the full Yardi Matrix multifamily real estate report.
