Seasonal factors contributed to subdued rent growth in February
SANTA BARBARA, Calif., March 11, 2025 – As multifamily rental markets emerge from winter, traditionally a subdued period for rental rate growth, upcoming supply absorption and economic issues are likely to pose a host of challenges, according to the latest Yardi® Matrix National Multifamily Report.
The average U.S. advertised asking rent increased by $1 in February, reaching $1,751, while year-over-year rent growth remained unchanged at 1.2%, in line with a historic pattern before the spring moving season. However, supply in 10 of the top 30 metros tracked by Yardi Matrix grew by at least 4% over the past year, with six adding at least 6%. Whether demand can remain strong enough to absorb deliveries and drive rent growth in those metros remains to be seen.
Economic factors looming over multifamily include layoffs, which numbered more than 170,000 in February alone by some estimates, and the specter of tariffs. “The uncertainty about [tariff] policy is leading some businesses to wait for clarity before investing,” according to the report. “The coming months will be consequential for multifamily.”
New York City led major metros with 5.6% year-over-year growth in February, followed by Kansas City, Mo., Columbus, Ohio, Chicago and Detroit.
Get more insights into key issues affecting the U.S. multifamily market in the new Yardi Matrix report.
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