Origin Forecasts Continuing Rent Growth for Class A Apartments

Article originally posted on HERE on November 26, 2024

A widening supply and demand imbalance for apartments across the U.S. will drive national annual year-over-year Class A multifamily rent growth up 2.4% by January 2026, according to Origin Investments’ 2025 Rent Growth Forecast. Rates in markets such as Colorado Springs, Dallas, Jacksonville, Las Vegas, Orlando, Raleigh and Tampa will see increases between between 4.0% and 5.7%.

Origin Investments’ proprietary suite of machine learning models, Multilytics, also forecasts Y-O-Y Class A rent growth gains in the West, Northeast and Southeast at or above the 3% historical national average. For the Southwest, Y-O-Y rent growth is predicted to be only 0.2%.

“We’re seeing record delivery of new product, the result of unprecedented new development that broke ground three plus years ago, when interest rates were at their lowest,” said David Scherer, Origin Investments’ co-CEO. “But that tremendous wave of deliveries isn’t being replaced. In the absence of the next wave, I see a world where rents continue escalating in the next one, two, three and maybe even four years.”