Multifamily Rents Slide As Demand Lags Supply In Key US Markets

National average rents fell $8 in November to $1,740, with year-over-year growth slowing to 0.2%, the weakest since early 2021.
Negative rent growth is now widespread, impacting 90% of top 30 metros, including recent strongholds like San Jose, San Francisco, and New Jersey.
Occupancy rates remain stable at 94.7%, but softening demand and high deliveries are expected to keep pressure on rents heading into 2026.

Key Takeaways

Rents Decline Amid Cooling Demand

US multifamily advertised rents dropped again in November, reports Yardi Matrix. It marked the fourth straight monthly decline as the average rent fell to $1,740. That’s down $17 from the summer peak, per Yardi Matrix. Year-over-year growth has dwindled to just 0.2%, a stark contrast to the pandemic-era surge.

Line chart showing national average multifamily rents from Nov 2023 to Nov 2025, peaking in mid-2025 before declining to $1,740 in November.

Bar charts comparing year-over-year rent growth across all asset classes, Lifestyle, and Renter-by-Necessity in 30 major metros as of November 2025. New York City and Chicago lead growth, while Austin, Phoenix, and Denver show largest declines.

Supply-demand Imbalance Worsens

The sluggish rent performance reflects deeper structural concerns. Metros with strong historical absorption—such as Austin (-5.0%), Phoenix, Denver (both -4.1%), and Dallas (-2.0%)—are now grappling with overbuilding and waning demand. These markets are dealing with elevated vacancies despite solid absorption levels, suggesting a widening mismatch between deliveries and leasing activity.

Even Top Performers Are Slipping

The rent weakness is no longer isolated to high-supply Sun Belt markets. November brought rent declines to New Jersey, San Francisco, San Jose, and Columbus—markets that had posted above-average rent growth in recent years. The Twin Cities was the only major metro to post positive monthly rent growth.

Bar charts showing month-over-month rent growth by metro and asset class in November 2025. Twin Cities saw gains while New York City, Austin, and Seattle had sharp declines.

Lifestyle VS. Renter-By-Necessity Divergence

Lifestyle properties continue to drive the downturn, falling 0.5% month-over-month, while the Renter-by-Necessity segment slipped a milder 0.4%. For example, in New York, RBN rents rose 1.0%, but Lifestyle rents dropped 1.4%, dragging overall performance negative.

Occupancy Remains Resilient… For Now

Despite declining rents, national occupancy held steady at 94.7% in October. Some markets, including Atlanta (+0.9%), San Francisco, and Phoenix (+0.4%), even posted gains. But others like Indianapolis (-0.5%), Washington DC, and Miami (-0.2%) saw small declines without clear causes.

Area chart showing monthly occupancy rates by asset class from Dec 2024 to Oct 2025, with overall occupancy peaking mid-year and declining slightly into fall.

Why It Matters

This sustained rent dip signals that developers and investors may need to brace for a more prolonged soft patch. With year-end absorption slowing, consumer confidence weakening, and immigration policies tightening, demand-side headwinds are taking their toll. Meanwhile, a robust pipeline of deliveries continues to flood the market, making rent growth recovery uncertain.

What’s Next?

Rent growth is projected to remain modest or negative in many metros for the rest of 2025. Markets like Austin, Phoenix, and Denver, with 2025 completion rates exceeding 5% of total stock, face the greatest downside risk.

Still, historically resilient metros like New York (5.7% YoY) and Chicago (3.8%) continue to post strong growth, thanks to tighter supply and urban demand.