What does the future hold for the U.S. multifamily market?

By Joel Nelson on October 28, 2025 in Matrix

Yardi Matrix multifamily bulletins October 2025

Two new Yardi Matrix research bulletins provide insight into forces that will impact supply and rent growth in the U.S. multifamily housing market over the next two years.

What the data shows

Drawing on data from more than 180 markets, Yardi Matrix forecasts that:

More supply will be available than previously projected, with at least 1.4 million units coming online from 2025 to 2027.
The product mix will remain relatively stable in that period, with market-rate and affordable units apartments comprising more than 90% of the new supply.
National asking rents will increase by 2% in 2027, down from 3% projected in June 2025, driven by the increased new-supply forecast.
Slower but still positive economic growth and moderate reductions in short-term interest rates will support development activity in 2026 and beyond.

“The multifamily sector closed the summer leasing season with disparate results by market, reflecting the complex and uneven economic signals that have come further into focus,” according to Yardi Matrix, with payrolls and employment gains slowing and consumers becoming more wary.

The revised asking rent forecast also reflects “a more modest trajectory of household formation as the labor market moderates and population growth returns to its pre-COVID decelerating trajectory.”

Read about the factors that prompt Yardi Matrix to summarize U.S. multifamily as a “slowly recovering apartment market in areas of high supply, but one which is fragile” in the new supply forecast and rent forecast research bulletins.