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The U.S. multifamily market is at a standstill, as the country’s job market has languished and population growth has slowed.
The national average advertised rent was $1,740 per month in February, flat from January and down just 0.1 percent year over year, according to a new report from research firm Yardi Matrix. The occupancy rate also was unchanged month over month in February, holding at 94.3 percent, though it was down by 0.4 percent year over year.
February is generally a slow time for the multifamily sector, but there are broader concerns that are unlikely to be resolved any time soon, according to Yardi Matrix. For example, the U.S. job market has been struggling; some 92,000 jobs were lost last month. The country’s slowing population growth is posing a strain on demand, as from July 2024 to July 2025, the population grew at the slowest rate since the pandemic. International immigration fell by 54 percent during that time frame from the year before and the birth rate is continuing to decline as well.
Finally, the war with Iran and continuing tariffs further underpin economic uncertainties.
Among the top 30 markets that Yardi Matrix tracks, almost two-thirds posted year-over-year drops in their average asking rent in February. The markets that struggled the most were those with well known supply issues. For instance, Austin’s average rent fell the most, by 5.2 percent year over year, followed by Phoenix (-3.6 percent), Denver and Tampa (both -3.2 percent).
On the flip side, the markets with the highest rent growths were large gateway cities — perennial favorites for renters that are also benefitting from return-to-office mandates — and Midwestern cities, which lately have seen a boost of demand because of lower costs of living and more space. New York posted the strongest year-over-year growth, of 4.2 percent, followed by San Francisco (3.6 percent) and Chicago (3.5 percent).