Multifamily rents in June continued the recent trend of moderate growth, according to Yardi Matrix’s National Multifamily Report. The U.S. average advertised rent inched up $4 to $1,763, with year-over-year growth flat at 0.2%. Growth for the first six months of the year was 1%, which is weaker than the pre-pandemic average.
While leasing activity remains healthy, the elevated volume of new supply continues to limit pricing power. Yardix Matrix cited moderating demand, with data showing national absorption totaling 108,000 units during the first five months of the year, down 61% from the same period in 2025. “This suggests household formation is no longer keeping pace with the surge in apartment completions, which could extend soft market conditions,” noted the report.
However, the broader economic backdrop may become more supportive of multifamily demand in the second half of the year. According to Yardi Matrix, “the outlook for multifamily fundamentals appears more positive than it did earlier in the year” due to slowing construction activity, global conflicts potentially winding down, and momentum in the labor market.
Year-over-year rent growth continued to be strongest in gateway and Midwest markets in June. New York moved back to the top of the list with 5.6% annual growth, followed by San Francisco, 4.7%; Chicago, 2.6%; Kansas City, Missouri, 2.4%; and the Twin Cities, 2.2%. Negative rent growth continued to be seen in many high-supply Sun Belt and Western metros, with Austin, Texas, at -4%; Denver, -3.1%; Tampa, Florida, -2.8%; Phoenix, -2.7%; and Houston, -2%.
The nation’s occupancy rate fell to 94.1% in June, a 0.6% year-over-year decline, according to Yardi Matrix. San Francisco, which is benefiting from strong demand related to artificial intelligence-related job growth, was also the only major market to post an occupancy increase of 0.3%. All other markets saw decreases, with the largest drops in Tampa, -1.4%, followed by Washington, D.C., -1%, and Houston and Columbus, Ohio, both at -0.9%.
Month over month, both lifestyle and renter-by-necessity rents increased 0.2% in June. The strongest increase was led by New York, 1.5%, followed by San Francisco, 0.6%, and Kansas City, 0.5%.
The single-family rental (SFR) segment also saw increased advertised rents in June, bumping up $6 to $2,234, up 0.2% year over year. Occupancy rates averaged 94.7%, down 30 basis points from the prior year.
Despite moderate rent growth, the SFR sector had a solid first half of the year, outperforming 2025. Rents increased 1.1% during the first half, including a 1% gain in the second quarter. In 2025, rents rose 0.9% in the first half and 0.7% in the second quarter.