Supply, Demand Buoy U.S. Multifamily Markets, Yardi Matrix Reports

Average advertised rent growth reflects resilient fundamentals, even in struggling metros

SANTA BARBARA, CALIF., June 4, 2025 – U.S. multifamily rents kept to their moderate growth trajectory in May 2025, with the national average advertised rent increasing $6 to 1,761 (1% year-over-year), according to a new report from Yardi® Matrix.

Strong absorption is helping to revive rent growth even in high-supply markets that have struggled. Austin, Texas, for example, recorded an increase of 0.2% in advertised rents in May even while growing its inventory by over 9% over the past year. Other metros with inventory growth totaling at least 6% over the past year that recorded positive rent growth in recent months include Raleigh, N.C.; Denver; Nashville, Tenn.; and Charlotte, N.C.

Even through heavy supply is depressing occupancy rates in some metros, “the drop is slow, as demand remains high in high-supply metros,” indicating “resilient demand that should lead to a rebound in rents once the supply wave subsides,” the report notes.

New York City recorded the largest rent increase by percentage in May, followed by Kansas City, Mo.; Philadelphia; Columbus, Ohio; Chicago; and Detroit.

While the full impact of higher tariff rates is yet to be seen, “early metrics show that the economy and renter financial health are solid” as measured by the consumer price index, job creation and wage growth, according to the report.

Read more on supply, demand and demographics in the Yardi Matrix National Multifamily Report for May 2025.

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