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Demand, economic pressures sink multifamily rents, Yardi Matrix reports

Full lease-up pipeline also helps drive biggest U.S. single-month drop in almost 3 years

SANTA BARBARA, Calif., Oct. 10, 2025 – New Yardi® Matrix research reveals that faltering demand, high supply and declining economic growth combined in September 2025 to produce the biggest one-month drop in the average U.S. multifamily rent in almost three years.

Picture of multifamily building

The average advertised rent fell $6 to $1,750, the largest decrease since November 2022. While rents remain close to their all-time highs, “the drop could signal emerging market softness,” according to a new Yardi Matrix national report.

A key contributor to the slump is the presence of more than half a million units in the lease-up phase, which intensifies competition among properties. Several high-supply metros including Denver, Phoenix, Las Vegas, Dallas and Austin, Texas, recorded negative year-over-year rent growth in September.

Another factor was an economy with rising unemployment and only 22,000 new jobs in August. Consumer anxiety “is concerning for multifamily, given the link between consumer confidence and household formation,” the report says, although a recent Federal Reserve short-term interest rate cut and potential future cuts could help stabilize conditions.

Get more in-depth information about trends in multifamily supply, demand and demographics in the Yardi Matrix National Multifamily Report for September 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.

About Yardi

Yardi® develops industry-leading software for all types and sizes of real estate companies across the world. With more than 10,000 employees, Yardi is working with our clients to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.