Does the persistent rent growth registered lately signal a turning point?
Highlights:
- The average U.S. advertised asking rent grew 0.2% year-over-year to $1,771 in July.
- Many Sun Belt markets recorded monthly gains.
- The 21st Century ROAD to Housing Act became law, yet a measurable supply shift may be years away.
- SF-BTR average advertised rents reached an all-time high in July, clocking in at $2,240, up 0.3% annually.
Strongest July showing since 2015, post-pandemic outliers notwithstanding
The average advertised national multifamily asking rent increased $4 in July, climbing 0.2% year-over-year to $1,771. This marked the strongest performance for the month since 2015, outside of the early post-pandemic boom. Year-to-date, the rate increased 1.3%, representing a slight improvement compared to the same period of 2025. Gateway and Midwest markets logged the strongest increases, with San Francisco (5.3% year-over-year) ahead of the pack, followed by New York city (5.2%) and Kansas City (3.1%). Metros high in supply continued showing negative growth, such as Austin (-3.7%), Denver (-2.7%) and Phoenix (-2.1%).
Monthly advertised rent gains clocked in at 0.2% in July. Rates ticked up nearly all across the board, with just six of the Matrix top 30 metros recording negative movement. Several Sun Belt markets registered increases, including Orlando, Nashville, Charlotte, Tampa, Atlanta, Miami and Austin, suggesting that as deliveries contract, competitive pressures may start lifting. Property type performance diverged, with Lifestyle rent growth clocking in at 0.3%, while Renter-by-Necessity rates increased just 0.1%. While at a national level the spread was minimal, the divergence was heightened at a market level with San Diego (130 basis points) recording the largest delta, followed by Charlotte (110 basis points), Indianapolis and Raleigh (100 basis points each).
The national occupancy rate stood at 94.1% in June, marking a 60 basis points decline year-over-year. This softening trend was felt across all major markets, with the sole exception of San Francisco, which posted a 0.3% annual increase. Steepest declines emerged in Tampa (-1.4%) and Washington, D.C. (-1.0%), while Houston (91.6%), Austin (91.9%), Dallas (92.2%), Las Vegas (92.6%) and Atlanta (92.9%) registered the lowest occupancy rates on an absolute basis.
Multifamily development to benefit from the 21st Century ROAD to Housing Act
The 21st Century ROAD to Housing Act became law in July, increasing the construction output potential through new measures that aim to fast-track projects by reducing the environmental review timeline of qualifying developments and tinkering with construction costs by altering certain staircase requirements, as well as providing more agency to regional housing agencies to develop appropriate housing plans. The bill also permanently enshrined Opportunity Zones, which attracted $112 billion in investments even though the deadline for stepped-up tax benefits previously ended in 2021. While these measures collectively aim to address the housing shortage, a measurable impact may not be as immediate on account of new projects and programs taking years of planning.
Year-to-date through July, the average advertised U.S. single-family build-to-rent rate increased $33, outperforming the same period recorded in 2024 and 2025. Annual growth clocked in at 0.3%, with the rents ticking up $5 to $2,240, marking an all-time high. The occupancy was down 30 basis points year-over-year to 94.7% in June, mirroring multifamily trends. Zooming in, performance varied greatly based on regions, with the Midwest leading comfortably as markets such as Indianapolis (4.1%), Chicago (3.8%) and Cleveland-Akron logged among the highest increases. Conversely, Texas metros including San Antonio (-5.2%), Austin (-2.4%), Dallas and Houston (-1.8% each) showed some of the weakest performances across the nation.
Read the full Yardi Matrix Multifamily National Market Report: July 2026.
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