Read the latest Yardi Matrix National Multifamily Market Report.
Though multifamily rent growth moderates, operating costs are also losing steam, according to Yardi Matrix data.
Report highlights
- The average U.S. advertised asking rent increased $2 to $1,754 in July, up 0.7% over the year.
- On a monthly basis, rates grew 0.1%, though several metros upended long stretches of negative rent movement.
- Expense-related pains eased, as costs climbed just 1.3% and 1.7% per market-rate and affordable unit during the first half of 2025.
- SFR-BTR average advertised asking rates were up 0.4% year-over-year in July, settling at $2,205.
Multifamily rents still trend higher, though growth rate cools
The U.S. multifamily average advertised asking rate recorded positive movement in July, albeit at a slower pace. Rents went up $2 to $1,754, for a yearly increase of 0.7%. The Midwest and coastal markets posted the highest gains, with Chicago (4.1%) leading the pack, followed by Columbus (3.9%), Detroit (3.5%) and New Jersey (2.7%). Metros overflowing with supply continued trending negative, including Austin (-4.6%), Denver (-3.9%), Phoenix (-2.8%) and Las Vegas (-1.7%).
On a short term basis, average advertised rents inched up by 0.1% across the nation. Many of the overperformers on an annual basis continued to solidify their positions with strong monthly gains, such as Detroit (1.0%), New York (0.9%), Columbus (0.8%) and Portland (0.6%). Some markets transitioned from growth to decline this month, including Kansas City (-0.7%) and Indianapolis (-0.4%). Conversely, select metros reversed course from contraction to rent growth, such as San Francisco (0.4%), Atlanta and Austin (each 0.3%).
The national multifamily occupancy rate stood at 94.7% in June, unchanged in four months and down just 0.1% over the year. Strong demand—more than 300,000 units absorbed during 2025’s first half—helped keep occupancy in check despite abundant supply. Across Matrix’s top 30 markets, New York City had the highest occupancy midway through 2025, settling at 98.4%, followed by New Jersey (97.1%) and Boston (96.5%) and San Diego (96.1%).
Tempered expense growth might offset sluggish rent improvement
With the income-side of the equation receiving much of the attention, the multifamily expenses might be overlooked. Yet, during 2025’s first half, market-rate and affordable housing expenses per unit grew by 1.3% and 1.7%, respectively. This increase is substantially below previous growths—market-rate peaked at 8.1% per unit in 2022 and affordable crested at 8.4% the year after. Insurance costs, which increased more than 120% since 2019, played a critical role in the rise of expenses.
Across the single-family build-to-rent sector, the national advertised asking rent went up $3 to $2,205 in July, increasing 0.4% year-over-year. Growth leaders included Chicago (5.9%), Harrisburg (4.9%), Columbus and Kansas City (each 4.8%), as well as Twin Cities (3.5%). Meanwhile, the national BTR occupancy stood at 95.0% in June, sliding down 30 basis points over the year. Yet, developers could build amenities to attract more tenants, should the costs pencil out, according to the National Rental Home Council.
Read the full Yardi Matrix Multifamily National Market Report: July 2025.
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