Inventory reins in U.S. multifamily rent growth, Yardi Matrix reports

Declining starts seen relieving supply pressure through 2025; economic outlook improves

SANTA BARBARA, CALIF., Aug. 5, 2025 – Rents in the U.S. multifamily market rose modestly in July 2025 as elevated levels of lease-up inventory continue to restrain growth, according to a new national multifamily report from Yardi® Matrix.

Year-over-year growth in the average advertised rent held at 0.7% in July. While absorption has been strong, “the substantial number of units still under construction or in pre-lease” has had a moderating effect on rent growth, the report notes.

Midwest and coastal metros recorded the highest year-over-year rent growth, led by Chicago; Columbus, Ohio; Detroit; New Jersey and San Francisco. Rent growth remained negative in many Sun Belt metros, with Austin, Texas; Denver; Phoenix; Las Vegas and Dallas registering the steepest declines.

Single-family build to rent units had similarly low (0.4%) year-over-year national advertised rate rent growth. Chicago; Kansas City, Mo.; and California’s Inland Empire were the growth leaders. Operators in this sector “are increasingly focused on new construction rather than acquisitions,” the report notes.

The report identifies several hopeful signs for the year’s second half, including decelerating multifamily deliveries due to the declining number of starts, higher-than-expected job growth and fewer worries about the impact of trade policy. Moreover, growth in insurance and other multifamily expenses moderated in the first half of 2025 after several years of above-trend increases.

The impact of interest rates remains uncertain, as the Federal Reserve maintains a cautious stance on lowering rates before the inflationary impact of tariffs presents clearly.

Read in-depth analysis of what’s ahead for U.S. multifamily and single-family build to rent housing in the Yardi Matrix National Multifamily Report for July 2025.

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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