Early signs for multifamily market in 2025 are positive
Key Takeaways
- Multifamily rents increased by $5 nationally in March of 2025, to an average of $1,755 per unit
- Year-over-year rent growth dropped 20 basis points to 1%
- Northeast and Midwest metros reported the highest rent growth
Despite the current economic uncertainty brought about by the policy changes introduced in the current Trump administration, the multifamily market shows early signs of trending positive in 2025.
Advertised rents rose $5 in March 2025, and increased 0.4% for the first quarter of the year, according to the latest National Multifamily Report by Yardi Matrix. This brings the average national rent to $1,755.
However, the year-over-year (YOY) figure decreased slightly. Advertised rent growth fell 20 basis points to 1% YOY.
National Average Rents
"Much about the rest of the year remains uncertain," the report states. "Economic volatility is extremely high due to the imposition of tariffs, the rising number of layoffs and dwindling consumer confidence. And cutbacks on immigration will impact demand to some degree."
Nationally, the occupancy rate has remained unchanged for three months, sitting at 94.5 percent. Metros in the Northeast and Midwest reported the highest rent growth.
New York City led the country with 5.5% YOY rent growth, followed by Chicago and Kansas City (both 3.7%), Columbus, (3.5%), and Philadelphia (3.2%). Metros that saw a negative growth include Austin (-5.4%), Denver (-3.6%), and Phoenix (-3%).
