The national average multifamily rent rose by $1 in February, up to $1,751, according to Yardi Matrix’s latest national multifamily report. Year-over-year rent growth was unchanged over the same period, standing at 1.2%.
Metro-level rent growth continues to vary widely by region, with patterns of strong rent growth ongoing in the Midwest and Northeast. New York City and Kansas City, Missouri, lead the pack at 5.6% and 4.1% rent growth YOY respectively, while Austin, Texas, remains at the bottom at -5.1% YOY. Occupancy remains unchanged at the national level at 94.5% in January. (Occupancy data is accurate to the previous month.)
| Market | YOY rent growth, February 2025 | YOY rent growth, January 2025 | Difference |
|---|---|---|---|
| New York City | 5.6% | 5.4% | 0.2 |
| Kansas City, Missouri | 4.1% | 3.9% | 0.2 |
| Columbus, Ohio | 3.8% | 2.1% | 1.7 |
| Chicago | 3.6% | 2.6% | 1 |
| Detroit | 3.5% | 4.1% | -0.6 |
| New Jersey | 3.4% | 4.2% | -0.8 |
| Indianapolis | 3.2% | 2.6% | 0.6 |
| Philadelphia | 3.1% | 3.1% | 0 |
| Washington, D.C. | 3.1% | 3.1% | 0 |
| Baltimore | 2.4% | 2.5% | -0.1 |
SOURCE: Yardi Matrix
Single-family rents at build-to-rent properties also remained unchanged in February, coming in at $2,165, while YOY rent growth held at 0.2% according to Yardi. Major metro-level price growth varies widely in this sector; Detroit is leading at 6.0% YOY, while Austin trails at -4.6% YOY.
Yardi describes the current rent growth environment as in a “holding pattern” for a variety of reasons. Multifamily performance tends to slow in the winter months, and 2024 recorded the highest number of new apartment deliveries in decades. Ten out of the top 30 metros tracked by Yardi Matrix posted over 4.0% supply growth as a percentage of stock last year, while six recorded over 6%.
Economic changes and uncertainty also stand to affect the market in the near future. Some estimates put the number of layoffs across the entire country in February at about 170,000, while immigration, a major driver of apartment demand, has slowed significantly, the report said.
It remains to be seen whether rents will rise again in March as usual, or if the markets with the highest new deliveries will be able to absorb them in the coming months. Yardi anticipates strong deliveries in 2025 before a dropoff in 2026.
“High-supply markets stand to benefit from reduced deliveries over the next few years, giving those markets some time to digest excess stock,” the report said. “Slowing demand, however, would increase pressure on properties in the lease-up phase and lengthen the period it will take to absorb the wave of excess supply.”
