Rent growth decreased slightly to 0.9% year-over-year in April, according to Yardi Matrix’s latest national multifamily market report.
Read the latest Yardi Matrix National Multifamily Market Report.
Report highlights:
- The average U.S. advertised asking rent gained $5 to $1,736 in April, up 0.9% year-over-year.
- On a monthly basis, rent growth in the Renter-by-Necessity segment outperformed Lifestyle.
- Uncertainty around tariffs and economic policy keeps down CRE deal flow and development.
- Gains in the SFR-BTR market stemmed solely from the RBN segment.
Multifamily fundamentals remain moderate
The average U.S. advertised asking rent rose 0.9% year-over-year through April, up $5 to $1,736. Growth is sustained by a stable labor market and a sluggish home sale market. The highest rent growth was recorded in New York City (5.8%), Columbus (3.7%), Philadelphia (3.6%), Kansas City (3.5%) and Chicago (3.3%). Metros in the Sun Belt continued to record negative growth, with the steepest drops posted by Austin (-5.6%), Denver (-3.9%), Phoenix (-3.1%), Dallas and Orlando (both -2.1%).
On a monthly basis, advertised asking rents rose 0.3%, up 0.2% in Lifestyle and 0.3% in RBN. Overall, rents declined in six of the top 30 metros. Raleigh led in short-term rent growth, up 1.0% overall, 1.0% in Lifestyle and 0.5% in RBN. Next in line were Columbus (0.9% overall), Boston and Indianapolis (both 0.8%) and Philadelphia (0.7%).
Following nearly three years of flat or falling performance, the U.S. occupancy rate stood at 94.4% in March, the lowest level since November 2013. Four metros, all in the Sun Belt area, posted occupancy rates below the 93.0% mark: Austin (92.5%), Houston, Atlanta and Dallas (92.6%).
Tariff worries subdue CRE deals, development
Multifamily fundamentals remain healthy, but uncertainty persists, created by concerns surrounding tariffs and economic policy. Consequently, investor appetite remained limited and development moderated. Floating-rate loans are preferred because borrowers expect the Federal Reserve to maintain short-term rates steady, while longer-term rates are volatile. Developers expressed concerns about labor and rising costs, and at the NMHC Spring Meeting, they estimated increases in total construction costs by 1% to 2%. Yardi Matrix forecast points to a slowdown in completions, which will likely aid a rebound in rent growth in the 3% to 4% range from 2027 to 2030.
Single-family build-to-rent advertised asking rents rose $5 to $2,178 in April, with growth sustained by a 1.9% year-over-year increase in the RBN segment, while Lifestyle rents dropped by 0.4%. The occupancy rate fell 0.6% year-over-year to 94.8% in March. Negative rent growth was concentrated in the Sun Belt, with nine of the 10 bottom rankings occupied by metros in the region. Among the lowest performers were Austin (overall rents down 4.4%, supply forecast at 1,353 units or 0.4% of stock), Phoenix (rents down 3.2%, supply forecast at 7,144 units or 1.9% of stock) and Dallas (rents down 2.1%, supply forecast at 3,165 units or 0.3% of stock). Completions in the sector are anticipated to decline by 44.5% in 2027 compared to 2025.
Read the full Yardi Matrix Multifamily National Market Report: April 2025.
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