Yardi Matrix report highlights multifamily outlook & market resilience

06 / 25 / 25

2 min read

A new U.S. multifamily outlook shows the market continues to perform strongly, creating new supply to meet ongoing high demand and displaying resilience amid growing uncertainty about the economy.

A new outlook report from Yardi Matrix examines key factors in the sector’s nationwide performance plus a look ahead to 2026 and beyond. Key findings include:

Absorption keeping pace with a pipeline of new supply that’s expected to exceed 535,000 units in 2025, following the 555,000 units that were absorbed in 2024.
Projected strong ongoing demand as high interest rates and prices in the for-sale housing sector keep homeownership out of reach of many renters.
Rent growth anticipated to total 1.5% in 2025, 1.1% in 2026 and 2.7% in 2027 before reaching 3-3.5% by 2028 as supply wanes.
Multifamily transactions totaling $25.9 billion through May, up 6.8% from the $24.3 billion total through the same period in 2024, as multifamily remains “the most attractive commercial real estate property type for investors, thanks to its strong performance in recent years and the perceived stability compared to other property types,” the report notes.
Growing concerns about the potential impact of slowing economic growth, inconsistent tariff policies and immigration restrictions.

“Multifamily rents have remained resilient amid ongoing economic uncertainty. Solid absorption and continued weakness in the for-sale housing market continue to support rent growth, despite the historically high multifamily supply,” the report says.

Get more insight into the U.S. rent, supply and capital market factors from the new Yardi Matrix U.S. Multifamily Outlook for summer 2025.

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.