Average asking rents increased after six months of declines
SANTA BARBARA, Calif., Feb. 11, 2025 – The U.S. multifamily market began 2025 on a promising note, with January advertised asking rents up $3 from the previous month to $1,746, according to the latest Yardi® Matrix National Multifamily Report.
Rent growth gained 20 basis points to 0.8 percent year-over-year, led by metros in the Northeast and Midwest. Meanwhile, roughly 400,000 units were absorbed in 2024, one of the highest years on record.
Despite strong absorption, stock expansion has pressured the occupancy rate to decline in many markets, including Austin, Texas; Charlotte, N.C.; and Nashville, Tenn. The national occupancy rate fell to 94.5 percent in January, its lowest level since 2014.
Cautious optimism is the prevailing market sentiment as 2025 begins. The optimism is fueled by steady economic growth and expectations that 2024’s high demand will persist. Caution stems from interest rates, which are expected to remain higher than anticipated, and heightened policy uncertainty.
Advertised asking rents in the single-family rental market increased by $5 to $2,157 in January, with year-over-year growth up by 20 basis points to -0.2 percent. The average SFR occupancy rate fell 0.7 percent year-over-year to 94.7 percent in January. U.S. home sales were down to 4 million in 2024, which will fuel demand for SFR. Investor demand is rising, as issuers floated $7.8 billion of bonds backed by SFR in 2024, one of the highest totals in market history.
Gain more insight in the new Yardi Matrix National Multifamily Report.
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