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By Joel Nelson on September 9, 2025 in Matrix
U.S. multifamily rent growth remained slow in August 2025, rising just 0.7% year-over-year, and Yardi Matrix analysts expect it to remain that way through year-end.
The deceleration is largely driven by supply, with elevated deliveries creating “a highly competitive leasing environment amid record absorption,” summarizes a new Yardi Matrix national report. This supply pressure is lessening, however, “with most metros past their peak supply and new starts declining sharply due to the cost of construction and tighter financing.”
While demand for multifamily housing has been strong so far this year, tightening consumer budgets and a softening job market could reduce it. Potentially lower interest rates and price increases from tariffs pose additional unknowns in terms of inflation and home sales.
The report also outlines several proposed subsidies, tax credits and environmental review revisions designed to spur affordable housing development. The federal government has increased funding for Low-Income Housing Trax Credits program funding and revamped the Opportunity Zone program. Meanwhile, governments in California, Michigan, Florida, Kansas and other states have taken action to build more housing.
National advertised rates for single family build-to-rent units were also virtually unchanged in August, rising 0.6% year-over-year.
Stay up to date on all the developments with the new Yardi Matrix reports on multifamily and build to rent.
