The multifamily housing market is expected to see steady growth in 2025, with a national rent increase of 1.5%, according to Yardi Matrix. The Northeast and Midwest are projected to lead this rent growth due to strong demand and limited new supply. In contrast, high-supply Sun Belt markets may see softer rent increases. While 2025 will continue to bring a high number of new deliveries—adding about 3% to the total U.S. stock—the slowdown in new construction starts in 2024 will likely impact supply levels in 2026 and beyond.
New York is expected to experience the highest rent growth at 3.1%, followed by Chicago, Kansas City, and Washington, D.C. Meanwhile, markets such as Austin, Charlotte, and Phoenix will see the largest percentage increases in new apartment stock. Despite this moderate expansion, transaction volumes remain slow due to investor concerns about interest rates and income growth. However, strong demand fueled by demographic trends, employment gains, and affordability barriers in the for-sale market should sustain positive momentum.
For renters and investors, this outlook suggests opportunities and challenges. Renters in growing markets should plan ahead for possible increases, while those in high-supply regions may find negotiating leverage. Investors should monitor shifting supply-demand dynamics, particularly in the Sun Belt, where oversupply could impact rental performance. Whether renting or investing, staying informed about regional trends will be key to making smart financial decisions.
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