Supply absorption, policy volatility could slow rent growth
SANTA BARBARA, Calif., March 12, 2025 – Advertised rents in the U.S. multifamily market will remain largely unchanged over the next couple of years, with 1.5% growth anticipated in 2025 and 1.1% next year, according to a new Yardi® Matrix Special Report.
Yardi Matrix also anticipates increased deliveries over the next two years, with 2025 accounting for the second-most units in a single year since the Great Financial Crisis. “Those deliveries will continue to be a drag on advertised rents in many Sun Belt markets that are still working to absorb the large influx of supply,” while other markets in the Midwest, Northeast and West Coast could see above-average growth, according to the report.
Federal actions on regulations, tariffs, government funding and staffing, and other operations have spread volatility across the economy, including the multifamily market, making forecasting difficult.
Learn more about the factors influencing U.S. multifamily market rents and deliveries in the new Yardi Matrix Special Report.
Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, affordable, student housing, vacant land, industrial, office, retail and self storage property types. Email [email protected], call (480) 663-1149 or visit yardimatrix.com to learn more.
About Yardi
Yardi® develops industry-leading software for all types and sizes of real estate companies across the world. With more than 10,000 employees, Yardi is working with our clients to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.