Read the latest Yardi Matrix National Multifamily Market Report.
During the first half of the year, rent grew at half the rate of pre-pandemic cycles, according to Yardi Matrix data
Report highlights:
- The average U.S. advertised asking rent increased $3 to $1,749 in June, up 0.9% year-over-year.
- Short-term, rent grew 0.2% month-over-month, with gateway and tech hub markets leading the way.
- Half of renters spend more than 30% of their income on housing and utilities, with 27% of renters spending upward of 50%.
- SFR-BTR average advertised asking rent climbed for the first time past the $2,200 mark in June.
Past 2025’s midway point, the multifamily market remains steady with room for improvement
The average U.S. advertised asking rent rose $3 to $1,749 in June, while increasing 0.9% year-over-year. Meanwhile, the figure also grew 1.2% during the first half of 2025, below the average pre-pandemic growth rate of 2.4%. Midwestern markets recorded the strongest rental improvement with Chicago (3.6%) leading the way, followed by Columbus (3.3%) and Kansas City (3.2%). Markets burdened by delivery gluts posted negative rent growth, including Austin (-4.7%), Denver (-3.9%), Phoenix (-2.6%) and Orlando (-1.2%).
Short-term, the average advertised asking rent increased 0.2% in June. Gateway and tech hub markets led the rent gains with Chicago (0.7%) on top, followed by Boston (0.6%), Columbus (0.4%), San Francisco and Seattle (both 0.4%). Notably, Denver (0.3%) had its fourth consecutive rent growth month, following a prolonged period of stagnation driven by high supply. Of the top 30 metros, four markets recorded negative rent movement, including Austin (-0.3%), Phoenix (-0.2%), Tampa and Miami (both -0.1%).
The national occupancy rate stood its ground, settling at 94.6% in May, unchanged over the past 7 months. However, the index was down 20 basis points year-over-year, impacted by record deliveries. Resilient demand—more than 250,000 units absorbed through May—helped stabilize the market. Only 3 metros witnessed a shift larger than 0.3%: Chicago (0.4% year-over-year), Denver (-1.0%) and Phoenix (-0.6%).
Supply growth, the solution for affordability issues
The national advertised asking rents climbed 27% in the five years ending May 2025, Yardi Matrix data shows. This increase has led to renters’ budgets becoming increasingly strained. Half of renters spent more than 30% of their income on housing and utilities in 2023, according to the Harvard Center for Joint Housing Studies. Additionally, 27% spent more than half of their income on housing. Since 2023, high-supply markets witnessed rent retraction, including Austin (-11.2%), Phoenix (-6.5%) and Orlando (-4.1%), adding further credence to the argument that inventory growth is the best solution to the affordability problem.
Single-family build-to-rent average advertised asking rents increased $4 to $2,201 in June, while also being up 0.7% year-over-year. This marked the first time the rate passed the $2,200 mark. Mirroring its top multifamily performance, Chicago also led BTR rent growth with a 6.1% increase year-over-year, followed by Kansas City (5.5%), the Inland Empire (4.5%) and Harrisburg (4.1%). Negative rent movement was recorded in markets such as Raleigh-Durham (-3.9%), Austin (-2.9%), Tampa (-2.5%) and Cleveland (-2.3%).
Read the full Yardi Matrix Multifamily National Market Report: June 2025.
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