Moderate Gains in the Forecast for 2025 Apartment Rent Growth

Following modest but steady performance by the U.S. apartment market in 2024, the 2025 Multifamily Outlook from Yardi Matrix expects moderate gains in the coming year. The report projects a 1.5% increase in advertised rents nationally, with metro areas in the Northeast and Midwest continuing to lead.

“The multifamily market enters 2025 in good shape, after several years of strong demand in most markets and expectations that interest rates are likely to decline,” according to Yardi Matrix. However, the report cautions that with the new administration in the White House, “changes will be in the cards” that have both positive and negative connotations for apartment demand.

Stock expansion in 2024 reached 550,000 units and will decline to 508,000 units in 2025. Meanwhile, absorption totaled 370,000 units through November. New construction dropped in 2024 to 256,000 rental units, far below the 708,000 units that started construction in 2022. This will lead to a drop in deliveries starting in 2026, boosting rent growth, according to Yardi Matrix.

Pictured: Philadelphia, one of 12 major metro areas expected to see above-average apartment rent growth in 2025.