The national average rent rose by $2 from June to July, up to $1,754, according to Yardi Matrix’s latest National Multifamily Report. Year-over-year rent growth is unchanged from June to July at 0.7% and has remained between 0.5% and 1.1% for the past 20 months.
The top 30 metros in Yardi’s data set are evenly split between locations with rising and falling rents. The Midwest and the Northeast make up the majority of metros with rising rents, according to Yardi, although Indianapolis and Kansas City, Missouri, have begun to fall back after strong performances over the past several months.
Conversely, San Francisco and Austin, Texas, are on a rebound following years of declining rents. Austin remains at the bottom for YOY rent growth at -4.6%, but experienced month-to-month growth of 0.3% in July.
| Market | YOY rent growth, July 2025 | YOY rent growth, June 2025 | Difference |
|---|---|---|---|
| Chicago | 4.1% | 3.6% | 0.5 |
| Columbus, Ohio | 3.9% | 3.3% | 0.6 |
| Detroit | 3.5% | 2.9% | 0.6 |
| New Jersey | 2.7% | 2.3% | 0.4 |
| San Francisco | 2.6% | 2.2% | 0.4 |
| New York City | 2.5% | 3.1% | -0.6 |
| Twin Cities | 2.4% | 2.4% | 0 |
| Kansas City, Missouri | 2.3% | 3.2% | -0.9 |
| Baltimore | 2.1% | 1.6% | 0.5 |
| Indianapolis | 1.9% | 2.4% | -0.5 |
SOURCE: Yardi Matrix
The occupancy rate was unchanged in June at 94.7%, down just 0.1% YOY. (Occupancy data is current to the previous month.)
Strong demand is propelling the ongoing rise in apartment rents, although high lease-up inventory continues to restrain growth, according to Yardi. Absorption is strong, with over 300,000 new units absorbed this year to date in June. If this pattern holds for the full year, 2025 will have the highest number of new units absorbed since 2021.
Approximately 1 million units are currently under construction, with about half of them in pre-leasing. However, deliveries are expected to fall back in the upcoming quarters, given a decline in the number of starts. This, in turn, will relieve some of the supply pressure on rents, according to Yardi.
On the economic side, job growth improved from June to July, and worries about the impact of trade policy declined, as current reports on tariff rates are more modest than feared earlier in the year, according to the report, released in August.
“While negotiations with Japan and the European Union are ongoing, major trading partners appear to be facing tariff rates in the area of 15%,” the report reads.
Interest rates remain elevated as the Federal Reserve is cautious about changes before the impact of tariffs is clear. Until then, multifamily sales remain weak, rising only 1% YOY to $36.4 billion in July, according to Yardi Matrix data.
