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National Multifamily Market Report – May 2025

Cover image for the May 2025 National Multifamily Market Report
Image by RCP/stock.adobe.com

Recovery signs from markets with weak rent performance over the last year, according to Yardi Matrix’s latest national multifamily market report.

Report highlights:

  • The average U.S. advertised asking rent rose by $6 to $1,761 in May, up 1.0% year-over-year.
  • On a month-over-month basis, rent growth was equal across property segments, up by 0.3%.
  • Signs of rebound emerge from metros with previously negative rent movement.
  • SFR-BTR advertised asking rents rose for the fourth consecutive month in May to $2,183.

Slow but steady achievements

The average U.S. advertised asking rent increased by $6 to $1,761 in May, maintaining at 1.0% year-over-year, a rate it stayed below over the period. Highest rent growth was recorded in gateway and secondary markets in the Northeast and Midwest, led by New York City (5.7%), Kansas City (4.0%), Philadelphia (3.4%) and Columbus (3.3%). Meanwhile, many high-supply metros continued to struggle, with the largest rent declines in Austin (-5.2%), Denver (-3.5%), Phoenix (-3.4%) and Orlando (-1.8%).

On a monthly basis, advertised asking rents rose 0.3%, leveled across asset classes. Of Yardi Matrix’s top 30 metros, only three registered declines—Tampa (-0.6%), Phoenix and San Diego (both -0.3%). Leading growth was Kansas City, up by 1.0% in May, followed by New Jersey and Denver (both 0.8%). Denver was one of the metros that signaled a recovery in rent growth, alongside Portland (0.7%), San Francisco (0.6%), and Seattle (0.4%).

The national occupancy rate fell by 30 basis points year-over-year through April to 94.4%, the lowest level since 2013. Sustained supply growth has contributed to occupancy decreases in two-thirds of the Matrix top 30 metros, led by Denver (-1.2%) and Phoenix (-0.9%). Five markets had occupancy rates below 93.0%, including Phoenix (92.4%), Austin (92.5%), Dallas and Houston (both 92.6%).

All factors lead to guarded optimism

Risks remain higher than normal, keeping the multifamily market in a guardedly optimistic state, as interest rates are anticipated to remain elevated due to the impact of tariff-driven inflation concerns. Meanwhile, policy wins in the budget process, including a 12.5% increase in LIHTC funding and the renewal of the Opportunity Zone program, are promising developments for the industry. Housing advocates estimate that these policies could drive the development of more than 500,000 housing units.

Single-family build-to-rent advertised asking rents rose $3 to $2,183, close to the all-time high of $2,185 reached in May 2024. SFR-BTR occupancy fell by 60 basis points year-over-year to 94.8% in April. Leading in rent growth in May were Detroit (5.0%), the Inland Empire (4.9%) and Kansas City (4.1%). Negative rent performance was recorded in Jacksonville (-0.1%), Austin (-4.4%), Phoenix (-2.5%), Tampa (-3.3%) and Dallas (-2.1%). These markets also registered some of the largest declines in home prices, per Redfin: Jacksonville (-3.4%), Austin (-3.0%), Phoenix (-2.1%), Tampa (-1.3%) and Dallas (-0.8%).

Read the full Yardi Matrix Multifamily National Market Report: May 2025.

About the author

Anca Gagiuc

Anca Gagiuc brings more than a decade of experience within the real estate industry. She is a senior associate editor with Commercial Property Executive and Multi-Housing News who also writes monthly multifamily reports at Yardi Matrix.

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