Sluggish seasonal bump leaves advertised rents in the red.

Highlights:

• The average U.S. advertised asking rent clocked in at $1,758 in April, down 0.2% year-over-year.
• Conversely, advertised asking rents were up 0.2% month-over-year, with more than two-thirds of Matrix’s top 30 markets experiencing growth.
• Rates were up 0.4 percent during 2026’s first four months, substantially below historical norms.
• SFR-BTR average advertised rents decreased 0.5% year-over-year to $2,211 in April.

Late spring catches multifamily rates in the negative

The national multifamily average advertised asking rent increased $4 in April to $1,758, a figure 0.2% lower than the one registered one year ago, but also 0.2% higher than the March reading. This year’s seasonal gain was just 0.4% during 2026’s first four months, about one-third of the average growth recorded during the same period of 2012 and 2019. Gateway and Midwest metros had the largest year-over-year rent increase, with New York leading the way (4.8%), followed by San Francisco (4.1%), Chicago (3.3%) and the Twin Cities (2.4%). A significant portion of the supply-heavy markets continued experiencing rental contraction, including Austin (-4.3%), Denver (-3.6%), Tampa (-3.4%) and Phoenix (-2.7%), as well as Raleigh (-2.0%).

Lifestyle properties contributed significantly to the multifamily market’s short-term growth. Advertised asking rents across such communities increased by 2.5% in New York, 0.9% in Chicago, as well as 0.4% in Nashville. The seasonal bump was felt across several high-supply markets, including Miami, Phoenix and Raleigh (0.3% each), but also Denver (0.2%), Nashville and Dallas (0.1% each). Still, the increase didn’t permeate throughout Matrix’s top 30 markets, though it did dominate across more than two-thirds of metros. Metros bucking this trend consisted of Charlotte and San Diego (-0.4% each), Houston, Las Vegas and Austin (-0.2% each).

The national average occupancy rate stood at 94.2% in March, down 0.5% year-over-year. Of the Matrix top 30 markets, San Francisco was the sole metro that tightened, with its figure increasing 0.2%. The remainder recorded declines, most being more than 50 basis points. Some of the steepest drops occurred in Tampa (-1.3%), Houston and Washington, D.C. (-1.0% each). Occupancy rates were lowest across Texas, where Houston, Austin and Dallas were below the 92.5% threshold.

Opportunities still abound for savvy investors and developers

Although this seasonal cycle doesn’t rise to the increases recorded in previous years, there are still plenty of opportunities to be had. Each market may still include outperforming pockets on account of favorable local supply-demand dynamics. Another option could arise for opportunistic investors seeking to capitalize on underperforming assets with debt that lenders might try to clear of their books. Lastly, owners may seek adjustments to their operating expenses, which have already increased by an average of 30% across the past half-decade.

The single-family build-to-rent rates ticked up $7 to $2,211 in April, down 0.5% year-over-year. Occupancy rates across the sector were likewise down 0.5% on an annual basis, at 94.5% in March. Early signs of the 21st Century ROAD to Housing Act’s impact on the BTR market can be observed across Houston, where developers began pausing projects, effectively stalling construction, according to the Houston Chronicle. Analysts believe the legislation may have the same effect at a wider scale across the country, potentially reducing BTR activity by up to 60%.

Read the full Yardi Matrix Multifamily National Market Report: April 2026.

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Highlights:

• The average U.S. advertised asking rent increased 0.1% year-over-year to $1,750 in March.
• Monthly gains swept across the nation, with all but 3 of the Matrix top 30 markets posting advertised rent growth.
• Geopolitics, artificial intelligence and demographics will play a significant role in future commercial real estate demand.
• SFR-BTR average advertised rents declined 0.5% year-over-year to $2,202 in March.

Annual growth leaves room for improvement

The national multifamily average advertised asking rent gained $5, climbing 0.1% to $1,750 year-over-year in March. While the growth rate was positive, the pace for this month was the slowest since 2012. For reference, rents grew on average 3.6% each March between 2012 and 2019. Gateway and Midwest metros recorded the highest increases, with New York City (4.5% year-over-year) in the lead, followed by San Francisco (3.9%), Chicago (3.4%), the Twin Cities (2.5%) and Kansas City (2.3%). Supply-abundant markets continued posting negative growth, such as Austin (-4.1%), Denver (-3.5%), Tampa (-3.4%), Phoenix (-3.2%) and Orlando (-1.8%).

Short-term rental changes were positive across an overwhelming majority of Matrix’s top 30 markets, with just 3 metros recording negative results, such as Seattle (-0.2% month-over-month), Raleigh and New Jersey (-0.1% each). Nationally, advertised rents ticked up 0.3%, though several coastal and Midwest metros were way ahead of that benchmark, including New York (1.0%), Indianapolis, San Francisco and Philadelphia (0.8% each). Of note is the performance of several supply-heavy Sun Belt markets, including Austin (0.9%) and Charlotte (0.7%), which offer them some welcome relief amid a weak annual showing.

The national average occupancy rate clocked in at 94.3% in February, representing a 0.4% decline year-over-year. The gap between the highest- and lowest-performing markets was wide, between 5% and 6%. Moreover, just Atlanta and San Francisco posted yearly gains, both tied at 0.2%. Northeast markets, such as New York (98.2%) and New Jersey (96.7%), were the tightest, while Texas metros were among the weakest, including Houston (91.8%) and Austin (92.0%).

A glimpse at future demand drivers

Geopolitics, artificial intelligence and shifting demographics may take their toll on commercial real estate demand. Short-term, inflation may rise on account of price increases across energy, fertilizer and petrochemicals as the Strait of Hormuz is blocked, while long-term, the shift of the U.S. economy from consumer-driven to AI-investment driven may displace or enhance labor. Additionally, the economy already presents a K-shape feature with spending concentrated on the upper third of earners, while lower-income households struggle with inflation and social spending cuts. All these factors could have a disparate effect on demand based on the property segment and region.

The single-family build-to-rent rates rose $5 to $2,202 in March, down 0.5% year-over-year. Occupancy was also down 0.5%, with the figure clocking in at 94.5% in February. Meanwhile, the housing bill that advances through Congress with the goal of making housing more affordable might have the opposite effect. Requiring developers to sell BTR homes seven years after completion might prohibit new projects from taking shape, reducing the housing supply by approximately 72,000 units per year, according to several studies.

Read the full Yardi Matrix Multifamily National Market Report: March 2026.

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Highlights:

• Inside DDAs, the fully affordable maximum net multifamily rent clocked in at $1,575 per unit in 2025, up 76.7 percent since 2016.
• The national market rate advertised rents reached $2,216 per unit inside DDAs at the end of 2025, marking a 32.8 percent growth since 2016.
• Outside DDAs, the age of stock and supply expansion are some of the factors driving the delta between income-restricted and market-rate rents.
• This rental difference may be used to inform decision-making regarding the development and preservation of affordable housing.

Two tools to channel affordable housing production and preservation

Some of the most significant tools policymakers may use to direct affordable housing development and preservation include Difficult Development Areas and Qualified Census Tracts. LIHTC projects within may receive an additional 30 percent boost to their eligible basis, allowing developments to pencil out without affecting rents or tenant income limits. A Yardi Matrix study of properties inside and outside DDAs and QTCs revealed a dynamic emerging between the affordable and market-rate rents.

While at a national level, the average rental delta between market-rate and affordable housing properties was somewhat tight outside DDAs, this varied greatly on a metro-by-metro basis. Take Austin, for instance, where income-restricted rates increased alongside the area’s median income to the point where they overtook traditional rates. The same supply imbalance that helped drive conventional rents down across Austin had the opposite effect in Miami, Boston and San Francisco, where inventory scarcity and income thresholds fueled a wider gap between affordable and market-rate rents.

Inside DDAs, the difference is more apparent with the national market rate advertised rents reaching $2,216 per unit at the end of 2025, up 32.8 percent since 2016, compared to the fully affordable maximum net rent of $1,575 per unit, up 76.7 percent since 2016. This larger delta may be explained away as such communities are within areas with higher incomes and development costs.  

Different tracts, different affordable housing tactics

By and large, non-DDA tracts seemed to exhibit a higher overlap between affordable housing and market-rate rents, particularly in fast-growing Sun Belt and Midwest metros. Several of the catalysts behind this dynamic include the age of stock, with older market-rate properties functioning as naturally occurring affordable housing, and supply growth or lack thereof, which either widens or narrows the gap between the rates.

A better understanding of the interplay between the duo could inform better decision-making regarding policy enactment and capital allocation. For instance, incentives within DDAs could aid projects that would otherwise be unfeasible, while incentives outside DDAs may help in improving housing quality where market-rate units are typically older. Preservation inside such tracts maintains attainable rents where market-rate premiums are already substantially higher, while preservation outside DDAs can anticipate and prevent future rental escalation due to higher occupancy levels.

Read the full Yardi Matrix Affordable Housing Market Report: April 2026.

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A typical February continues the multifamily sector’s stagnation trend.

Highlights:

• The average U.S. advertised asking rent ticked up 0.1% year-over-year to $1,740 in February.
• Short-term gains were null across the nation, with less than one-third of Matrix’s top 30 registering any monthly rent increases.
• The U.S. population grew by 1.8 million between July 2024 and July 2025, making it the weakest performance in half a decade.
• SFR-BTR average advertised rents inched down 0.4% year-over-year to $2,191 in February.

Similar rental results for 18 consecutive months

The national multifamily average advertised asking rent stagnated, settling at $1,740 in February, unmoved month-over-month, but up 0.1 percent on an annual basis. Average rents have shifted little during the past 18 months. Primary and Midwest metros were ahead of the curve with the highest annual rent growth, including New York (4.2%), San Francisco (3.6%), Chicago (3.5%), the Twin Cities (2.3%) and Kansas City (2.0%). Supply-burdened markets such as Austin (-5.2%), Phoenix (-3.6%), Denver and Tampa (-3.2% each), as well as Charlotte (-1.9%) continued experienced rental rate decline.

Month-over-month, national advertised rent growth stagnated, with just 9 of Matrix’s top 30 markets posting any gains. Asset class made no difference as Lifestyle and Renter-by-Necessity rents were both unchanged from January. That being said, a clearer pattern emerged in terms of strength, which coalesced around gateway metros with New York (0.9%), San Franscico (0.5%) and Chicago (0.3%) being some of the markets experiencing short-term rent growth. The Midwest also held its own, posting either modest chance or flat movement amid steady demand and limited new supply, though the region lacks factors such as strong income growth or clear return-to-office policies, which may limit its future gains. Noteworthy metros included the Twin Cities (0.2%), Kansas City (0.1%) and Detroit (0.0%).

The average national occupancy rate ticked down 40 basis points year-over-year to 94.3% in February. Approximately half of Matrix’ top 30 metros posted losses of more than 0.5%, and nearly all such markets also recorded negative rent growth. Standouts in either direction included San Francisco and Atlanta (0.2% occupancy increase each), Tampa (-1.1%), Houston and Washington, D.C. (-0.9%).

The population growth rate faces a substantial setback

One of the key drivers that increase demand is population growth. Between July 2024 and July 2025, the U.S. recorded the lowest increase in half-a-decade, with the population increasing by just 1.8 million. That figure was also below the annual average dating back to 2000. The factors depressing population growth included crackdowns on immigration, which was down by more than half year-over-year, a slowdown in domestic migration, which was below the yearly average dating back to 2000, and the number of births between 2024-25, which represented just 1.06 percent of the population, marking an all-time low. Sun Belt states, including Texas, Florida and the Carolinas, posted the highest growth in population, though the rate of expansion was modest. Moreover, metros that rely on immigration and domestic migration may risk facing a continued demand decrease.

The single-family build-to-rent rates remained unchanged month-over-month, but down 0.4% year-over-year to $2,191 in February. The average occupancy across the sector clocked in at 94.5 percent, with the rate also experiencing a similar annual compression of 0.5 percent. Meanwhile, the industry continues to find itself at a crossroads as the 21st Century ROAD to Housing Act threatens to prohibit institutional investors from acquiring SFR product. Several trade groups, such as the NRHC and NMHC, oppose the federal legislation, claiming that it may do serious harm to the sector.

Read the full Yardi Matrix Multifamily National Market Report: February 2026.

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Affordable housing net operating income grew faster than its market-rate counterpart for the second year in a row

Highlights:

• Net operating income grew year-over-year on average by 8.7% at affordable properties.
• Multifamily NOI increased by just 2.2% during the same period.
• HUD allowed maximum rent increases of more than 6% on average at affordable properties.
• Insurance costs plateaued, up just 0.2% year-over-year per unit at income-restricted communities.

Net operating income continues to thrive at affordable properties

Net operating income at fully affordable multifamily properties grew at a faster rate than their traditional counterparts in 2025, according to Yardi Matrix Expert data. NOI growth at income-restricted properties stood on average at 8.7% in 2025, while the figure rose only by 2.2% across market-rate multifamily properties. Notably, affordable assets also outperformed traditional properties in 2024.

Affordable housing NOI growth showed strong regional variance, with strong gains across the Northeast and Southeast and more measured increases in the Southwest. The Northeast had an average growth of 12.9%, mostly driven by expensive metros such as New York City, Boston or Philadelphia.

At the other end of the growth chart were Southwest markets, where market-rate properties posed great competition to affordable assets. This region had an average NOI growth rate of 2.5% in 2025; however, a few markets were way below that benchmark, such as Austin (-18.9%) and Dallas (-2.2%). Struggling affordable properties aren’t found just across the Southwest. In fact, a November study from Cohn Reznick revealed that one in four LIHTC properties reported operating deficits.

Higher HUD allowable rents and tempering insurance premiums support affordable NOI

Such struggling properties might have occupancy issues or rent-collecting difficulties, which reduce gross income. Yet, that was not the rule in 2025, with gross income at affordable properties rising by 5.7% on average. HUD’s average allowable maximum rent increases were instrumental in the gross gains across income-restricted communities, as the department allowed for more than 6.0% growth on average at affordable properties.

Meanwhile, expenses grew by 3.3% on average across fully affordable communities, representing a substantially tamer growth rate compared to the peaks of 2022 and 2023 when expenditures grew by 7.8% annually. Insurance costs used to drive this growth, as it surged 126.2% between 2020 and 2025, but its surge has plateaued last year, only ticking up 0.2% per unit.

Read the full Yardi Matrix Affordable Housing Market Report: February 2026.

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The start of 2026 marks a rebound for multifamily rent growth after five consecutive months of rate depreciation.

Highlights:

• The average U.S. advertised asking rent increased $3 to $1,741, marking a 0.2% increase year-over-year.
• Monthly growth mirrored yearly growth at 0.2%, with more than half of Matrix’s top 30 markets posting gains.
• Last year, 519,000 apartments were absorbed, marking 2025 as the third-best showing of the past decade.
• SFR-BTR average advertised rents declined $2 to $2,184 in January, representing a 0.9% drop year-over-year.

New year, new multifamily rental performance

At the end of January, national multifamily average advertised asking rents rebounded, increasing $3 to $1,741, marking a 0.2 percent growth year-over-year. This increase put a stop to a consecutive five-month streak of rent decreases. The usual Midwest and coastal markets posted gains, with Chicago leading annual rent growth (3.6%), followed by New York City (3.3%), the Twin Cities (2.7%), and Kansas City (2.5%), as well as San Francisco (2.0%). Supply-burdened metros such as Austin (-5.0%), Phoenix (-3.7%), Denver (-3.2%), Tampa (-3.0%) and Las Vegas (-2.8%) continued showing negative rent growth.

Short-term and long-term growth rates converged at 0.2% each, with more than half of the top 30 Yardi Matrix markets registering monthly improvements. Metros across the coastal and Midwest regions posted the strongest gains, including Seattle, Chicago and New Jersey (0.6% each). Rental performance declined throughout Sun Belt markets such as Tampa (-0.8%), Austin and Houston (-0.3% each). A clear divide between the rate growth of Renter-By-Necessity and Lifestyle properties emerged in certain markets. For instance, Detroit skewed toward an increase in the rent of its RBN stock and a depreciation of the Lifestyle pricing, which suggests a potential trade down from renters amid affordability concerns. Conversely, San Diego posted uneven rent growth favoring Lifestyle properties, a phenomenon likely pointing to a strong income demographic and limited new supply.

The average national occupancy rate slid down 10 basis points year-over-year to 94.5 percent in December. However, last year’s delivery count of 590,000 units nearly doubled the pre-pandemic average of 317,000, dating back to 2013. Supply-heavy metros across the Sun Belt had some of the lowest occupancy rates, including Houston (92.2%), Austin (92.3%) and Dallas (92.9%).  Meanwhile, a few of the markets that moved the needle in a positive direction were Atlanta (0.6% occupancy growth), the Twin Cities (0.3%) and San Francisco (0.2%).

Multifamily absorption, despite posting solid figures, raises concerns

Last year witnessed 590,000 deliveries and 519,000 absorptions, ranking 2025 as the third-highest absorption year of the past decade. However, the figure began tapering off during the later part of the year, with a difference of more than 50% between 2025’s first half and second half. What’s more, the second quarter’s figure is 80% higher than the fourth quarter’s value. For reference, that index averaged 31% during the past decade, aligned with seasonal variance. A prevailing concern is that this steeper drop in absorption reflects broader economic trends, including immigration policy and weak job growth, that pressure household growth and may keep demand weak. Still, absorption was strong across high-growth Sun Belt metros, including Austin (7.5% of stock absorbed in 2025), Charlotte (7.4%), Raleigh-Durham (6.0%) and Nashville (5.6%), as well as Phoenix (5.3%).

The average single-family build-to-rent rate ticked down $2 to $2,184 in January, marking a 0.9% decline year-over-year. Occupancy rates remained unchanged at 94.9 percent in December. A recent White House executive order aims to aid affordability concerns by banning institutional investment across single-family homes. Yet, such measures might lead to the opposite effect as institutional investors tend to expand the rental inventory and place downward pressure on both rents and for-sale home prices. Markets with solid investor presence that reflect this dynamic include Tampa (-2.7% SFR rent growth, -2.1% median home sale price, according to Redfin), Houston (-1.2%; -5.4%) and Atlanta (-0.5%; -5.7%). Conversely, metros where institutional investment is lacking, such as the Twin Cities (7.2%; 9.2%), Chicago (6.7%;4.3%) and South Dakota (2.0%; 4.7%), registered yearly increases in SFR rents and home prices.

Read the full Yardi Matrix Multifamily National Market Report: January 2026.

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Federal policy changes aim to boost affordable housing production.

Highlights:

• Opportunity Zone and Difficult Development Areas encompass 6.4 million units nationwide.
• Of these, 5.1 million are market-rate and 1.3 million are fully affordable.
• Under construction and planned units across OZs and DDAs add up to 348,000 units.
• The figure might grow larger through policy alterations that expand OZs and enhance the eligibility to attain DDA benefits.

Policy changes further emphasize location for affordable housing

Federal policies changed throughout 2025, placing greater emphasis on a property’s location, aligning capital with local affordability needs. These measures include the Opportunity Zone program extension and LIHTC improvements in the 4 and 9 percent categories, as well as an increase in eligibility for Difficult Development Area benefits. These enactments aim to improve the feasibility of projects in low-income and high-cost areas through the OZ and DDA programs, respectively.

DDAs debuted together with the LIHTC program in 1986, whereby such areas would provide developers with additional tax credits, should their project qualify for LIHTC. Projects inside DDAs could be eligible for a 30% basis boost, increasing equity and reducing debt exposure in areas where land, materials and operating costs are prohibitive to development. Companies pursued DDA affordable projects across Sun Belt markets that witnessed strong population growth and high construction costs, which narrowed margins. Phoenix is one such example, where planned and underway apartments make up 90 percent of affordable DDA stock.

OZs propose attracting development in low-income areas instead, and they offer tax incentives in exchange. A clear-cut example of an OZ-bolstered pipeline is found in Salt Lake City, where 1,656 fully affordable units are under construction, representing 27.2% of total stock. Austin is another such market, in which suburban expansion and an inflow of migration fostered an environment for a strong construction cycle across OZs. Austin’s 1,984 fully affordable units account for 21.1% of inventory, a share higher than Columbus (16%) and Raleigh-Durham (12.7%).

Two complementary, non-competing incentives

Nationally, OZs and DDAs encompass 6.4 million apartments, of which 5.1 million are rented out at market-rate, while the remaining 1.3 million are income-restricted. The potential for growth is high, with 348,000 units across all stages of development found throughout OZs and DDAs combined. The extent to which the federal policy changes will bolster production depends on interest rates, capital availability and construction labor constraints, as well as local entitlement environments. Yet, what is certain is that such incentives not only influence whether projects pencil out but also dictate where capital concentrates.

DDAs and OZs are complementary tools, rather than competing policies. Understanding the nuances and differences between the two is imperative for market participants to reduce risk and improve capital efficiency. Therefore, figuring out which incentive best aligns with a market’s underlying cost, demand and capital dynamics is a task that befalls investors and developers. Participants who choose construction sites, underwrite and deploy capital accordingly, will align to better capture the next wave of affordable housing production, according to Paul Fiorilla, director of research at Yardi Matrix, and Jacob Gonzales, senior research analyst.

Read the full Yardi Matrix Affordable Housing Market Report: January 2026.

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Highlights:

• The average U.S. advertised asking rent declined $5 to $1,737 in December, resetting all yearly gains to 0.
• Rents went down 30 basis points month-over-month, with just six out of Matrix’s top 30 markets posting gains.
• Despite a weak rental showing, multifamily transaction volume still grew in 2025 to $83.2 billion, up from $82.4 billion in 2024.
• SFR-BTR average advertised rents ticked down $4 to $2,180 in December, down 1% year-over-year, marking the steepest drop in more than a decade.

No rent growth in 2025 marks the weakest showing in five years

During the fourth quarter of 2025, multifamily advertised asking rents slipped 0.9%, or $16, to $1,737 in December, marking the weakest performance since the global financial crisis. On a year-over-year basis, the growth was zero—a rare happenstance with the last two such occurrences taking place in 2020 and 2010. Certain gateway and Midwest markets bucked national trends and registered yearly gains, such as New York City (5.8%), Chicago (3.6%), Twin Cities (3.2%), Kansas City (2.6%), San Francisco (1.9%). Western and Sun Belt metros exhibited negative growth, including Austin (-5.2%), Phoenix (-4.1%), Las Vegas (-2.5%) and Portland (-2.0%).

On a monthly basis, U.S. advertised rents fell 30 basis points in December, with just six out of the Matrix top 30 markets posting gains. Metros that registered short-term gains were clustered around the Midwest, led by Kansas City (0.7%), Columbus, Baltimore and Detroit (0.4% each). Such markets proved resilient due to limited new supply and greater affordability. Inversely, Sun Belt metros that are still absorbing waves of deliveries experienced softening demand, which led to weaker pricing. Coastal markets, while not as affected by supply growth, underwent affordability challenges amid economic uncertainties, which shifted renter preferences.

The national occupancy rate clocked in at 94.6% in November, unchanged year-over-year. Demand remained strong, with some markets posting yearly gains despite weakening rent growth, suggesting demand is outpacing pricing power. Sun Belt markets, including Atlanta (0.9% year-over-year) and Phoenix (0.3%), were among the metros that recorded higher occupancies with new units being absorbed as well, although owners ended up making concessions reflected by soft rental growth.

Multifamily investment grows with coastal assets in high demand

Despite a deflating rental display, investment continued to pour in. National sales volume totaled $83.2 billion in 2025, up from $82.4 billion in 2024 and $69.5 billion in 2023. Sun Belt and secondary markets attracted most activity, with Dallas and Seattle ($3.9 billion each) leading the way. Traditional gateway markets, including Chicago ($3.6 billion), Boston and Los Angeles ($2.8 billion), as well as New York City, Washington, D.C., and San Francisco ($2.4 billion each), were also among the top deal performers. Competition and demand were fiercest across such gateway metros as they posted the lowest cap rates, including San Francisco’s South Bay (3.8%) and Peninsula (4.1%), as well as Manhattan (4.1%) and Los Angeles (4.3%).

Single-family build-to-rent rates declined $4 to $2,180 in December, marking a 1% drop year-over-year—the steepest in more than a decade. Mirroring multifamily trends, BTR rents grew across certain Midwest markets, including Twin Cities (7.7% year-over-year), Chicago (7.0%) and Grand Rapids (4.5%). The occupancy rate remained stable at 94.9 percent, growing 10 basis points year-over-year. This would suggest that the rental softening is not due to demand, which proved resilient against the backdrop of slow single-family home sales, but rather due to a market correction as owners are willing to concede prices and maintain higher occupancies, especially in markets with high supply.

Read the full Yardi Matrix Multifamily National Market Report: December 2025.

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On the back of four consecutive months of negative rent movement, the multifamily market also registers the weakest yearly growth since 2021.

Highlights:

• The average U.S. advertised asking rent dropped $8 to $1,740 in November, still 0.2% up year-over-year.
• Rates dropped 50 basis points short-term, with all but one of Yardi Matrix’s top 30 markets recording rent declines.
• As the Opportunity Zone program becomes permanent, analysts believe more than 1 million units could debut in the next decade.
• SFR-BTR average advertised rents slid $10 to $2,185 in November, dropping 0.5% year-over-year.

Advertised annual rent growth hasn’t been this sluggish since 2021

The national multifamily market entered its fourth consecutive month of negative advertised rent growth. The average rate dropped $8 to $1,740 in November, however, still growing 0.2% year-over-year. Coastal and Midwest metros registered the highest increases, with New York leading the way (5.7%), followed by Chicago (3.8%) and the Twin Cities (3.2%), as well as San Francisco (2.6%). High-supply markets experienced rental deceleration, such as Austin (-5.0%), Phoenix and Denver (-4.1% each), Las Vegas (-2.1%) and Dallas (-2.0%).

National advertised rents slid 50 basis points month-over-month, with all but one of Yardi Matrix’s top 30 markets stagnating or recording short-term losses. Twin Cities’ rates went up 0.5% and Chicago’s stood unchanged at 0.0%, while all other metros experienced rent contractions. Notably, metros that had robust yearly rent growth suffered steep short-term declines, including New York (-1.2%) and New Jersey (-0.9%). Other markets with rent depression comprise Austin and Seattle (-1.0% each) and Denver (-0.9%).

The national occupancy rate clocked in at 94.7% in October, unchanged from last year. The index retained its resilience across markets such as Atlanta (0.9% growth year-over-year), the Twin Cities (0.5%), San Francisco and Phoenix (0.4% each). Several markets with elevated levels of new supply, such as Indianapolis (-0.5%), Washington, D.C. (-0.3%), as well as Detroit, New Jersey and Miami (-0.2% each), witnessed a decline in occupancy. What’s more, October’s absorption figures at a national level were the lowest in several years.

Permanent Opportunity Zones promise an investment and development boost

Introduced in 2017, the Opportunity Zone incentive program has attracted roughly $350 billion in investment, mostly from middle-market entities. However, that volume might increase as the bill is slated to become permanent, potentially attracting private investors. The permanent enshrinement will also modify the program, redrawing tracts and reducing qualifying thresholds by half.  Moreover, analysts project about 1 million housing units to debut across the next decade. For reference, 600,000 apartments came online in OZs since 2018, with, according to the Economic Innovation Group, about half rising directly as a result of the incentive.

Single-family build-to-rent rates fell $10 to $2,185 in November, dropping 0.5% year-over-year. The rents also declined $28 since they peaked at $2,213 in July. Although a winter slowdown is to be expected, this November was quite different than previous years, when the month witnessed 1.4% increases. Midwest markets such as Twin Cities and Chicago (7.9% each) registered the steepest increases. Sun Belt metros continued posting negative rent growth, including Austin (-3.9%), Charleston (-3.8%) and Pensacola (-2.5%).

Read the full Yardi Matrix Multifamily National Market Report: November 2025.

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Sticky advertised rental decline continues pressing the multifamily market.

Highlights:

• The average U.S. advertised asking rent slid $4 to $1,743 in October, up 0.5% year-over-year.
• Just two of Matrix’s top 30 markets experienced rent growth month-over-month, with the average national figure ticking down 0.2%.
• During the third quarter, multifamily absorption clocked in at 110,000 units, below the average of 185,000 recorded in the first and second quarters.
• SFR-BTR average advertised rents declined $6 to $2,195 in October, unchanged from last year.

Previous short-lived problems transition to medium-term issues

The national multifamily market continued a weak showing as the average advertised rent fell $4 to $1,743 in October. Year-over-year rent growth remained unchanged at 0.5%. Gateway and Midwestern markets posted the strongest gains, with New York taking the lead (4.7%), followed by Chicago (3.9%), San Francisco (3.4%) and Twin Cities (2.9%). Sun Belt and Western metros had a subdued rent growth, such as Austin (-4.8%), Denver (-4.1%), Phoenix (-3.3%) and Las Vegas (-1.7%).

Overall advertised rents slid 0.2% month-over-month in October. Lifestyle rates dragged the index lower, dropping 30 basis points, as opposed to Renter-by-Necessity, which fell just 10 basis points. Just two out of the top 30 Yardi Matrix markets registered any gains, those being New Jersey and Detroit (0.1% each). The steepest declines occurred across New York (-1.7%), Austin (-1.0%), Raleigh and Denver (-0.8% each). Notably, none of these top markets recorded an increase in Lifestyle rates, while RBN rate movement was slightly more split, yet still heavily tilted toward negative growth, with 20 metros being in the red.

The average multifamily occupancy clocked in at 94.7% in September, up 10 basis points year-over-year. Occupancy gains were recorded in Atlanta (up 0.9% year-over-year), Charlotte (0.5%), Phoenix, Nashville and Orlando (0.3% each), despite being high-supply markets.

Absorption stumbles with the largest decline felt across the Midwest

Although occupancy remained stable, just 110,000 units were absorbed during the third quarter. By historical standards, the figure may not be bad, but it signals a downward trend when compared to the average of 2025’s first two quarters—185,000 apartments. This deceleration was heightened across the Midwest (down 75% quarter-over-quarter), followed by the Southeast (55%), Southwest (43%), West (35%) and Northeast (29%). Among the Matrix top 30 markets, Charlotte, Austin, Nashville and Raleigh-Durham had more than 5% of stock absorbed year-to-date through September.

Single-family build-to-rent rates ticked down $6 to $2,195 in October, unchanged from last year. Midwest markets saw the largest increases, such as Twin Cities and Chicago (7.0% each) and Grand Rapids (5.4%), while weak rent growth was found across Austin (-4.2%), Jacksonville (-1.9%), Nashville (-1.3%) and Dallas (-1.0%). Meanwhile, the sector’s overall occupancy rate was strong at 95.1% in September, increasing 10 basis points year-over-year.

Read the full Yardi Matrix Multifamily National Market Report: October 2025.

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