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

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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.’