Rates slip in September, leaving the rental market reeling, according to Yardi Matrix data.
Highlights:
- The average U.S. advertised asking rent fell $6 to $1,750 in September, up 0.6% year-over-year.
- More than two-thirds of Matrix’s top 30 markets experienced rental decline month-over-month, with the national figure dropping 0.3%
- Household formation is on track to decline over the next decade, though multifamily impact may not be as strong.
- SFR-BTR average advertised rents ticked down $15 to $2,194 in September, marking the worst drop since 2015.
Multifamily marches on, despite monthly hiccup
The national multifamily market experienced the worst September since 2009 as the average advertised asking rents fell $6 to $1,750. Annual growth stood at 0.6%, down 30 basis points. Coastal and Midwestern markets experienced a yearly uptick with New York leading the way at 4.8%, followed by Chicago (3.9%), the Twin Cities (3.4%) and San Francisco (3.3%). Metros encumbered by supply continued to underperform, such as Denver (-4.3%), Austin (-4.0%), and Phoenix (-3.3%).
Short-term losses in the average advertised asking rent department stood at 0.3 percent in September. Notably, just six of the top 30 Yardi Matrix markets registered any gains. The top performers were coastal markets, including New York and San Francisco (0.5% each). Sun Belt markets continued feeling rental moderations amid supply abundance as most saw rents contract 0.5% or more. Other notable metros with slight performances included Boston (-1%), Detroit (-0.4%), Chicago and Columbus (-0.5% each).
The national occupancy rate remained unchanged over the year, at 94.7% in August. Few large swings in either direction occurred, with the largest increases occurring in Atlanta (0.8% year-over-year growth), Charlotte and the Twin Cities (0.6% each), while Denver saw the steepest decline (-0.4%). Only Austin and Houston were below the 93.0% threshold, an improvement compared to late spring and early summer when the occupancy of five markets stood under that benchmark.
Household formation to dampen, yet demand may remain unscathed
One of the key drivers of multifamily demand, household growth, is likely to moderate across the next decade, according to a study by the Joint Center for Real Estate Studies at Harvard University. It is expected that new households may total 860,000 annually, down from 1.5 million per year. However, as fewer home acquisitions are also projected, it is possible that multifamily demand may not be as affected.
Over in the single-family build-to-rent sector, the national advertised rates fell $15 to $2,194 in September, unchanged over the year. Last month’s drop marked the poorest performance since 2015, while this year’s sluggish rent growth is also the weakest in a decade. Occupancy remained unmoved year-over-year, clocking in at 95.1% in August. Demand is likely to remain solid as many potential home buyers are priced out of the market, which may also drive a rental rebound as new stock diminishes and supply tightens.
Read the full Yardi Matrix Multifamily National Market Report: September 2025.
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