Demand from a solid labor market and a weak for-sale home market continues to drive moderate multifamily rent growth. The average U.S. asking rent increased $5 to $1,736 in April, according to the latest Yardi Matrix National Multifamily Report. Year-over-year asking rent growth fell 10 basis points to 0.9%.
However, Yardi Matrix said that while solid demand has kept rent growth steady, economic uncertainty threatens the market.
“Although record levels of deliveries have applied downward pressure on rents, strong job growth and fewer renters moving into homes have helped maintain healthy absorption,” according to the report. “Early data aligns with our forecast of moderate 1.5% rent growth in 2025, but the contraction of the first quarter GDP raises the risk of a potential downturn, which could disrupt otherwise resilient fundamentals.”
Yardi Matrix also noted that uncertainty caused by tariffs could challenge the market.
“Weaker economic growth could offset the supply slowdown by reducing multifamily demand, which could delay rent growth recovery. Household formations could decline as more people begin doubling up,” according to the report
Northeast and Midwest metros remained at the top of Yardi Matrix’s list for year-over-year rent growth in April. New York City led the major metros at 5.8% growth year over year, followed by Columbus, Ohio, at 3.7%; Philadelphia at 3.6%; Kansas City, Missouri, at 3.5%; and Chicago at 3.3%. Negative rent growth was most concentrated in the Sun Belt: Austin, Texas, again experienced negative year-over-year rent growth at -5.6%, followed by Denver at -3.9%; Phoenix at -3.1%; and Dallas and Orlando, Florida, at -2.1%.
According to Yardi Matrix, the national occupancy rate inched down slightly at 94.4%, the lowest point since November 2013.
Month over month, rents inched up 0.3% in April, with six of the top 30 metros posting rent drops. The lifestyle segment saw a 0.2% gain, and the renter-by-necessity segment saw a 0.3% increase.
On the single-family rental side, asking rents increased $5 to $2,178 in April, with flat year-over-year growth. The occupancy rate held steady at 94.8%.
According to Yardi Matrix, negative year-over-year growth also was concentrated in the Sun Belt, with nine out of the bottom 10 metros there.
“Sun Belt metros with the most negative rent growth and highest supply forecast for 2025 include Austin, Phoenix, and Dallas,” noted the report. “The wave of supply will continue to suppress rent growth until the new units are absorbed, with a slowdown in completions anticipated in the coming years.”
In addition to its multifamily report, Yardi Matrix released its national student housing report for April. According to the report, advertised rental rates for Yardi 200 schools increased by 2% year over year to $917 per bed last month, while rents fell month over month for the first time since August.
Preleasing at the Yardi 200 schools averaged 73.2% for the month, 140 basis points higher than in April 2024.
