Multifamily rents rose in the first quarter of 2025 and “early indicators suggest resilience for multifamily in 2025, but the looming impact of new policies and economic uncertainty casts a shadow,” Yardi Matrix says in its March report.
“While Northeast and Midwest metros post strong growth, oversupplied markets struggle, and the impact of new administration initiatives is yet to be seen,” Yardi Matrix writes in the report as U.S. advertised rents rose $5 in March, and rose by 0.4% for the first quarter of the year.
The rent increase was less than typically seen in the first quarter, likely due to the increased new apartment supply in some markets.
Highlights of the report
- Multifamily performance maintained its strength at the start of the spring leasing season, as the average U.S. advertised asking rent increased $5 nationally in March to $1,755. Year-over-year advertised rent growth, which has held to a narrow range since last summer, fell 20 basis points to 1.0%.
- Gateway-market performance is solid. New York and Chicago lead the top 30 matrix metros in advertised rent growth, and among gateway metros only San Francisco is below the national year-over-year 1.0% average growth rate.
- Single-family build-to-rent advertised rates also had a strong increase in March, up $5 to $2,169. Gains were entirely concentrated in the renter-by-necessity segment, which is up 2.3% year-over-year. Nationally, advertised rents are the same as a year ago.
Reductions in immigration would affect demand to some degree and add to the economic uncertainty, the report says.
“Much about the rest of the year remains uncertain. Economic volatility is extremely high due to the imposition of tariffs, the rising number of layoffs and dwindling consumer confidence,” Yardi Matrix writes in the report.
Read the full report here.
About Yardi Matrix
Yardi Matrix researches and reports on multifamily, office and self-storage properties across the United States, serving the needs of a variety of industry professionals. Yardi Matrix Multifamily provides accurate data on 18+ million units, covering more than 90 percent of the U.S. population. Contact the company at (480) 663-1149.