U.S. advertised rents slipped again in December
Weak Finish Erodes 2025 Gains For Multifamily Rents
U.S. advertised rents slipped again in December, producing the weakest quarter in years and wiping out gains made during the first half of 2025, Yardi Matrix says in its year-end report.
Multifamily rents pretty much ended the year where they started with the weak finish to 2025.
Regional disparities that defined recent years persisted through 2025. Rent growth remained concentrated in coastal markets and the Midwest, while the weakest performance was largely confined to the Sun Belt, where elevated new supply continues to weigh on pricing.
That is not stopping investors from increasing transaction volume and paying up for multifamily properties. Demand is strong, but counteracted by pricing uncertainty. High-growth secondary markets led by Dallas, Seattle and Phoenix attracted the most investor dollars in 2025.
Report Your Tenant’s Rent Today!
Report on-time & missed payments to Experian, Equifax, and TransUnion
Highlights of the report:
- 2025 ended on a down note for multifamily, as a weak finish to 2025 late-year performance wiped out all the gains from earlier in the year. The average U.S. advertised rent fell $5 to $1,737 in December, with year-over-year growth dropping 20 basis points to 0.0%.
- Years without growth are rare. The last one with no average national advertised rent recorded was the 2020 pandemic year. Before that, the last one without a national rent increase was the recovery from the global financial crisis in 2010. We expect modest increases in 2026.
- Single-family build-to-rent units are maintaining strong occupancy, but advertised rates are weakening as well. The average BTR advertised rent declined by $4 in December to $2,180, while the year-over-year growth rate fell to -1.0%.
“Fourth-quarter performance marked the weakest showing since the global financial crisis, raising concerns about near-term multifamily demand,” the report says.
“Looking ahead, despite ongoing economic uncertainty, stronger GDP growth in the fourth quarter points to improving momentum. Greater stability in 2026 could help lift consumer confidence and support a gradual rebound in rental demand.”
Source: Rental Housing Journal
Accessibility