Trends signal cautious optimism in U.S. multifamily

A new Yardi Matrix report shows that the slow rent growth, steady demand and high supply that have recently characterized the U.S. multifamily market continued in July.

Skyline of a city

Slow rent growth, steady demand and high supply have been the principal characteristics of the U.S. multifamily market recently, and July 2025 was no exception.

The average advertised rent increased by $2 that month, representing 0.7% year-over-year growth, while absorption, which totaled 300,000 units year-to-date as of June, has been strong. Meanwhile, about 1 million units were under construction, with about half of them being in the pre-lease phase.

Other trends examined in a new Yardi Matrix national report include:

  • A 94.7% national occupancy rate in June that has remained unchanged for four months and fell just 0.1% year-over-year.
  • Decelerating deliveries in coming quarters due to the declining number of starts, which figure to relieve some of the supply pressure on rents.
  • The ongoing specter of interest rates, which constitute a major roadblock as the Federal Reserve remains cautions about lowering rates before the inflationary impact of tariffs becomes clear.
  • Moderating growth in multifamily expenses in the first half of 2025, led by decelerating insurance cost growth, following several years of above-trend increases.

Overall, “the outlook for multifamily in the second half is sanguine,” the report notes, on the strength of delivery deceleration, an improved economic outlook, less concern about the impact of trade policy and slower cost growth in the sector.

Get more insight about multifamily, along with the single-family build to rent segment, from the Yardi Matrix National Multifamily Report for July 2025.

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AUTHOR

Joel Nelson, senior marketing writer, joined Yardi in 2007. His byline has appeared in New York Real Estate Journal, Canadian Property Management and Los Angeles Lawyer, among others. He has won multiple awards from major professional organizations including the International Association of Business Communicators and Public Communicators of Los Angeles. Joel earned a bachelor’s degree from Pomona College.

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