Yardi Matrix: U.S. Multifamily Market Holding Steady Amid Challenges

Strong demand and abundant supply build resilience as unease over new policies grows

SANTA BARBARA, Calif., June 24, 2025 /PRNewswire/ -- The U.S. multifamily market has performed strongly so far in 2025, with demand nearly matching a heavy supply pipeline and rents remaining resilient amid economic uncertainty, according to Yardi^® Matrix's semiannual national outlook.

Persistent housing affordability issues in Q1, including an average 30-year mortgage rate of 6.8% and a 1.8% year-over-year increase in the median existing home price, have kept demand for multifamily housing high. Looking ahead, the report notes that declining deliveries of new supply are 'feeding optimism about a new wave of rent growth on the other side of the supply peak.'

Yardi Matrix projects national rent growth of 1.5% in 2025, 1.1% in 2026 and 2.7% in 2027 before reaching 3% to 3.5% by 2028 as supply wanes.

While job growth, inflation and consumer spending have remained steady, the report notes 'signs that the strong growth of recent years is slowing,' with changes in tariffs, immigration and other policy areas 'creating heightened downside risks going forward' for the multifamily sector. Moreover, 'interest rates, critical to the multifamily industry, are unlikely to drop given the tug-of-war between weaker economic growth and potentially higher inflation.'

Get detailed rent, supply and capital market insights in the Yardi Matrix U.S. Multifamily Outlook for summer 2025.

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, single-family rentals/ build to rent, affordable housing, student housing, self-storage, office, industrial, retail and vacant land property types. Email matrix@yardi.com, call (480) 663-1149 or visit yardimatrix.com to learn more.

About Yardi

Yardi^® develops industry-leading software for all types and sizes of real estate companies across the world. With more than 10,000 employees, Yardi is working with our clients to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.

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SOURCE Yardi Matrix