Yardi Matrix: Multifamily Performance Strong in First-Half 2025

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Yardi Matrix, Santa Barbara, Calif., reported multifamily performance remained strong in the first half of 2025. Nationally, multifamily advertised rent growth has been about 1%.

The report forecasted modest rent growth nationally, with 1.5% by the end of 2025, 1.1% in 2026 and 2.7% in 2027, with more robust growth after that.

Demand has also nearly kept pace with the heavy supply pipeline, Yardi Matrix found. But, new supply is finally slowing, with starts dropping by almost half so far this year.

While 536,000 new units are anticipated to come online in 2025, the full impact of declining starts will become more apparent in 2026, when 422,000 units are projected.

Yardi Matrix also forecasts that there will be a longer-term shift in the multifamily landscape, with the single-family build-to-rent and fully affordable housing segments making up a larger proportion of deliveries.

Transaction activity for multifamily has remained subdued given current economic conditions. Multifamily transactions were $25.9 billion through the end of May, up 6.8% from the $24.3 billion in the same 2024 period.

Through the end of May, issuance of CMBS and collateralized loan obligations totaled $67.4 billion, up 76.4% year-over-year from the same period in 2024, according to the CRE Finance Council.

Government-backed agencies issued $55.1 billion of multifamily debt, up 42% from the 2024 period.