Regional variation in rent growth continues, with national average expected to inch up

SANTA BARBARA, Calif., Dec. 19, 2024 /PRNewswire/ -- The national multifamily market recorded modest but steady performance in 2024, and the 2025 Multifamily Outlook from Yardi Matrix expects moderate gains in the coming year.

Advertised asking rents increased by one percent in 2024 through November, down from the 1.9 percent gain recorded in 2023 and 2024, and well below the 21.4 percent gain recorded in boom years 2021 and 2022. Analysts forecast that rent growth will increase 1.5 percent in 2025.

Metros in Northeast and Midwest will maintain lead in advertised rent growth, boosted by positive demand and weak supply growth. Strong supply will continue to pressure rents in Sun Belt metros.

Stock expansion in 2024 amounted to 550,000 units and will decline to 508,000 units in 2025, states the report. Meanwhile, absorption totaled 370,000 units through November.

New construction dropped in 2024 to 256,000 rental units, far below the 2022 when 708,000 units started construction. This will lead to a drop in deliveries starting in 2026, turning up rent growth.

Gain more insights in the latest U.S. Multifamily Outlook from Yardi Matrix.

Yardi Matrix offers the industry's most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, affordable housing, student housing, vacant land, industrial, office, retail and self storage property types. Email [email protected], call 480-663-1149 or visit yardimatrix.com to learn more.

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SOURCE Yardi