A late-year dip in advertised multifamily rents in the United States erased the modest gains posted earlier in 2025, something that might signal a slowdown in apartment demand as the sector heads into the new year, according to new research from Yardi Matrix.
In December, the average advertised U.S. apartment rent fell by $5 to $1,737, a 0.3% decline from November. That monthly drop closed out 2025 with flat year-over-year rent growth, marking the weakest quarterly performance for the multifamily market since the global financial crisis, Yardi Matrix reported in its National Multifamily Report for December.
Yardi Matrix reported that renter demand slowed toward the end of 2025, partly because of flattening job growth and the effects of immigration policy, factors that weighed on household formation. Still, occupancy levels have held firm, and supply absorption remains healthy when compared to long-term historical trends.
The disconnect between slowing rent growth and stable occupancy suggests that renters are becoming more price-sensitive, particularly in markets where a wave of new supply has intensified competition among landlords.
Geographically, rent growth in 2025 was uneven. Gains were largely concentrated in coastal markets and across parts of the Midwest, where new supply has been more limited and demand drivers have remained strong.
The weakest performance was concentrated in Sun Belt markets, where elevated levels of new construction have weighed heavily on pricing. Cities that saw rapid development during the post-pandemic surge are now grappling with increased concessions and downward pressure on advertised rents.
While rents softened, investment activity showed greater resilience. Multifamily sales volume in 2025 finished about 10% higher than in 2024, reflecting renewed investor interest after a slower period earlier in the cycle. Transaction activity was strongest in secondary and Sun Belt markets, including Dallas, Seattle, Phoenix, Miami and Atlanta. Yardi Matrix said that these metros continue to attract capital because of their long-term population growth prospects.
Looking ahead, Yardi Matrix analysts struck a cautiously optimistic tone. Despite ongoing economic uncertainty, gross domestic product growth in the fourth quarter pointed to improving momentum in the broader economy. Greater stability in 2026 could help lift consumer confidence, support job creation and gradually revive rental demand.
Yardi Matrix reported, too, that a slowdown in new apartment deliveries later in 2026 could also help rebalance supply and demand in oversupplied markets.