Yardi Matrix Update Presents Nuanced Portrait of U.S. Multifamily Market

Economic indicators hold steady; questions surround tax, immigration proposals

SANTA BARBARA, CALIF., June 25, 2025 – Heading into summer, the U.S. multifamily market stands at a crossroads between solid economic fundamentals and the prospect of slower momentum resulting from new tax, regulatory and immigration policies, according to a new special report from Yardi® Matrix.

While core indicators such as payrolls and consumer spending remain generally healthy, “forward-looking measures such as consumer sentiment and ISM new orders suggest momentum is moderating,” the report notes. And the impact of proposed federal tax and deregulatory initiatives remains “uncertain and subject to debate among economists.”

On another front, shrinking the pool of workers with revised immigration rules could cut demand for apartments “while also reducing the number of new jobs needed to keep unemployment steady,” the report says. Seasonal advertised asking rent growth has already underperformed historical norms this year; national average rents increased just 02.% per month from March through May, about half the 2010-19 spring average.

In the near term, Yardi Matrix projects a “muted growth environment” for multifamily, followed by a rebalance of supply-demand conditions that is likely to drive “a gradual return to long-term trend rent increases.”

Read more about key multifamily trends heading into the summer leasing season in the Yardi Matrix Special Report: Multifamily Rent Forecast Update.

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, single-family rentals/ build to rent, affordable housing, student housing, self storage, office, industrial, retail and vacant land property types. Email [email protected], call (480) 663-1149 or visit yardimatrix.com to learn more.

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