New Yardi Matrix research reveals that faltering demand, high supply and declining economic growth combined in September 2025 to produce the biggest one-month drop in the average U.S. multifamily rent in almost three years.
LOCAL NEWS: 50 Most Powerful People in Arizona Business for 2025
INDUSTRY INSIGHTS: Want more news like this? Get our free newsletter here
The average advertised rent fell $6 to $1,750, the largest decrease since November 2022. While rents remain close to their all-time highs, “the drop could signal emerging market softness,” according to a new Yardi Matrix national report.
A key contributor to the slump is the presence of more than half a million units in the lease-up phase, which intensifies competition among properties. Several high-supply metros including Denver, Phoenix, Las Vegas, Dallas and Austin, Texas, recorded negative year-over-year rent growth in September.
Another factor was an economy with rising unemployment and only 22,000 new jobs in August. Consumer anxiety “is concerning for multifamily, given the link between consumer confidence and household formation,” the report says, although a recent Federal Reserve short-term interest rate cut and potential future cuts could help stabilize conditions.
Get more in-depth information about trends in multifamily supply, demand and demographics in the Yardi Matrix National Multifamily Report for September 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.
