National Multifamily Report – May 2025
Markets with weak rent performance over the last year show signs of a rebound, reports Yardi Matrix.
The U.S. multifamily market maintained a steady performance in May, according to Yardi Matrix’s latest survey of 140 markets. The average advertised asking rent gained $6 to $1,761, maintaining growth at 1 percent year-over-year. Varying degrees of positive movement sprang from weak-performing markets, including Denver, San Francisco, Dallas and Austin. The national occupancy rate fell by 30 basis points year-over-year to 94.4 percent in April, the lowest level since 2013. Meanwhile, the average advertised asking rent in the single-family build-to-rent sector rose by $3 to $2,183 in May, down by 0.1 percent year-over-year.
Rent growth remained highest in gateway and secondary metros in the Northeast and Midwest, led by New York City (5.7 percent), Kansas City (4.0 percent), Philadelphia (3.4 percent) and Columbus (3.3 percent). High-supply metros continued to record negative rent growth, led by Austin (-5.2 percent), Denver (-3.5 percent), Phoenix (-3.4 percent) and Orlando (-1.8 percent). Another result of sustained supply growth was the 30-basis-point year-over-year decline of the national occupancy rate to 94.4 percent in April. Two-thirds of Matrix’s top 30 markets recorded declines in occupancy rates, five of which below 93 percent, including Phoenix (92.4 percent), Austin (92.5 percent), Dallas and Houston (both 92.6 percent).
New markets join the short-term rent growth pool
U.S. advertised asking rents rose by 0.3 percent month-over-month in May, even across property segments, and declined in just three of the top 30 metros—Tampa (-0.6 percent), Phoenix and San Diego (both -0.3 percent). Leading metros were Kansas City (1.0 percent) and New Jersey and Denver (both 0.8 percent). Denver was among several markets with weak rent performance over the past year that signaled a rebound, alongside Portland (0.7 percent), San Francisco (0.6 percent) and Seattle (0.4 percent).
The market is “guardedly optimistic,” as even though risks remain higher than normal, with interest rates expected to stay high due to the impact of tariff-driven inflation fears, the multifamily industry is sustained by several events. These include policy wins in the budget process, a 12.5 percent increase in funding for the LIHTC program, and the renewal of the Opportunity Zone program. Housing advocates say these actions could spur the development of more than 500,000 housing units.
The average U.S. advertised asking rent for the single-family build-to-rent segment gained $3 to $2,183 in May, for a 0.1 percent year-over-year decline. The national SFR occupancy rate fell by 60 basis points year-over-year to 94.8 percent in April. Leaders in SFR-BTR rent growth in May were Detroit (5.0 percent), the Inland Empire (4.9 percent) and Kansas City (4.1 percent). Metros with negative growth included Jacksonville (-0.1% year-over-year), Austin (-4.4 percent), Phoenix (-2.5 percent), Tampa (-3.3 percent) and Dallas (-2.1 percent). The same markets are also among the leaders in declining home prices, per Redfin: Jacksonville (-3.4 percent year-over-year), Austin (-3.0 percent), Phoenix (-2.1 percent), Tampa (-1.3 percent) and Dallas (-0.8 percent).
Read the full Yardi Matrix multifamily real estate report.
