Yardi Matrix: Multifamily Market Remains Resilient Amid Economic Uncertainty

Article originally posted on Multifamily Executive on April 9, 2025

Despite economic uncertainty, multifamily performance has maintained its strength at the start of spring selling season. The average U.S. asking rent increased $5 to $1,755 in March and by 0.4% for the first quarter, according to the latest Yardi Matrix National Multifamily Report. Year-over-year asking rent growth fell 20 basis points to 1%.

Yardi Matrix noted that the rent increase through March was weaker than typical first quarters, but not by much.

“The difference can be attributed to the ongoing weakness in high-supply markets, where rents are down year over year despite extremely strong rental demand,” according to the report. “Rents have dropped over the past year in metros, such as Austin, Texas; Denver; Phoenix; and Nashville, Tennessee, that maintain high levels of absorption.”

The remainder of the year remains a question mark. Yardi Matrix stated a positive sign is that investors remain confident and the capital markets are liquid. On the other side, “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 agree.”

New York City again topped the major metros for year-over-year rent growth, coming in at 5.4% in March, followed by the Midwest metros of Chicago and Kansas City, Missouri, both at 3.7%; and Columbus, Ohio, at 3.5%. Austin again experienced negative year-over-year rent growth at -5.4%, followed by Denver at -3.6%; Phoenix at -3%; Dallas at -1.7%; and Atlanta at -1.6%.

According to Yardi Matrix, the national occupancy rate held steady at 94.5%, unchanged for three months.

Month over month, rents inched up 0.3% in March, with six of the top 30 metros posting rent drops. The lifestyle segment saw a 0.3% gain, and the renter-by-necessity segment saw a 0.2% increase.

On the single-family rental (SFR) side, asking rents increased $5 to $2,169 in March, with flat year-over-year growth. The occupancy rate remained at 94.7%.

According to Yardi Matrix, SFR build-to-rent fundamentals are healthy despite slowing rent increases. Like multifamily, rent growth is strongest in the Midwest, with the region claiming over half the top metros for growth in March—Kansas City, at 5.4% year over year; South Dakota at 5.1%; Detroit at 4.9%; Columbus at 4.5%; and the Twin Cities at 3.4%.“Demand for SFR is unlikely to waver, as the high cost of homeownership is keeping SFR tenants in place for longer,” noted the report.