Multifamily Rents Flat in 2025, Modest Growth Seen Ahead

Article originally posted on Multifamily Executive on January 20, 2026

Multifamily rents ended 2025 where they started, according to Yardi Matrix’s National Multifamily Report. The U.S. average advertised rent decreased $5 to $1,737 in December, with year-over-year growth dropping 20 basis points to 0%.

“Years without growth are rare. The last one with no average national advertised rent recorded was the 2020 pandemic year,” noted the report. “Before that, the last one without a national rent increase was the recovery from the global financial crisis in 2010. We expect modest increases in 2026.”

Performance in the fourth quarter also marked the weakest showing since the global financial crisis, raising concerns about near-term rental demand.

Year-over-year rent growth continued to be strongest in gateway and Midwest markets in December. New York continued to lead the way with 5.8% annual growth, followed by Chicago, 3.6%; the Twin Cities, 3.2%; and Kansas City, Missouri, 2.6%. Negative rent growth continued to be seen in many high-supply Sun Belt and Western metros, with Austin, Texas, at -5.2%; Phoenix at -4.1%; Denver at -3.9%; Las Vegas at -2.5%; and Portland, Oregon, at -2%.

The national occupancy rate inched down to 94.6% in November, flat compared with the prior year. According to Yardi Matrix, several markets posted year-over-year occupancy gains despite weaker rent growth, including Atlanta, up 0.9%, and Phoenix, up 0.3%.

Month over month, only six of Yardi Matrix’s top 30 markets saw positive advertised rent growth in December. These were largely concentrated in the Midwest, led by Kansas City; Columbus, Ohio; Baltimore; and Detroit. Rents at both lifestyle and renter-by-necessity assets also were down.

“This performance highlights a widening geographic divide. Midwest metros have emerged as some of the most resilient, driven by limited new supply and greater affordability,” stated the report. “In contrast, many Sun Belt markets are still absorbing a wave of deliveries from recent years, which has weakened pricing amid softer demand. Meanwhile, coastal markets—despite avoiding significant supply growth—are facing affordability constraints, as already-high rent levels leave them especially sensitive to economic uncertainty and shifts in renter demand.”

Advertised rents also saw a decline on the single-family rental (SFR) side, falling $4 to $2,180 in December, with year-over-year growth down 1%. This marks the largest drop in over a decade, exceeding November’s 0.7% decline.

Similar to multifamily, rents are remaining elevated in many Midwest markets, including  the Twin Cities at 7.7% year-over-year growth, Chicago at 7%, and Grand Rapids, Michigan, at 4.5%.

“The national rent declines are not the result of weak demand, as occupancy rates are stable. Slow single-family home sales continue to support SFR demand. While mortgage rates may edge slightly lower, they are likely to remain near current levels, keeping many would-be home buyers on the sidelines,” noted the report. “And SFR owners are willing to moderate rent growth to maintain occupancy, especially in high-supply markets.”