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**The Realities Behind 2025’s Multifamily Rent Growth**
Year-end reports from data analytics and commercial real estate firms were largely in agreement: apartment rent growth was minimal to nonexistent in 2025. Depending on the source, year-over-year rent growth stood at 1.1% (Cushman & Wakefield), 0.6% (RealPage), or even flat, according to Yardi Matrix, which called it “the weakest showing in five years.”
Industry leaders, however, say this cooling was expected and not a cause for concern. “Broadly speaking, rent growth in 2025 was slower than in the immediate post-COVID years,” said Dwight Dunton, founder, CEO, and CIO of Bonaventure. “That shouldn’t surprise anyone, as we were coming off a strong run.”
**Normalization, Not Hysteria**
From 2022 to 2024, the multifamily sector saw record-breaking rent growth. Factors such as remote work trends and the unaffordability of homeownership drove demand, particularly in suburban markets. This surge in demand led to a boom in multifamily developments.
But double-digit rent growth isn’t sustainable in the long term. Laura Khouri, President and COO of Western National Property Management, emphasized that “2025 has looked more like a normalization phase” following years of above-trend growth.
Similarly, David Fletcher, Managing Director and Head of Acquisitions at Excelsa Holding, took an optimistic view: “Rent growth in 2025 reflected a period of measured improvement, following the subdued performance of the previous two years. While increases were modest nationally, the sector avoided the deeper corrections some analysts expected.”
**It’s About the Geography**
Not every market experienced flat or falling rents. Brian Connolly, Founder and CEO of Feasibly, noted that conditions varied widely by geography. While many regions reported stable or slightly negative numbers, some submarkets—even within slower regions—performed relatively well.
Khouri noted that markets with strong job growth and manageable new supply outperformed others. In contrast, markets with heavy deliveries, particularly in the Sun Belt and Mountain regions, lagged behind. These high-supply markets had to offer greater concessions to maintain occupancy.
Karlin Conklin, President and COO of Investors Management Group, echoed this sentiment, describing 2025 as “a year of protecting occupancy,” rather than one focused on raising rents.
**What’s to Come in 2026**
Looking ahead, Yardi Matrix anticipates approximately 450,000 new units to be delivered in 2026, while RealPage projects deliveries to fall to around 300,000 units. Although these figures reflect a decline compared to recent peak years, they do not automatically signal that rent growth will accelerate.
Most experts expect 2026 to continue the trend of rent growth normalization. “We anticipate stabilization, followed by modest acceleration toward long-term historical averages,” Connolly said. He added that improvements are most likely to occur in the second half of the year as leasing activity rebounds and occupancy strengthens.
Conklin projected that as supply slows, concessions would ease and operators could capture modest rent increases. Khouri also sees improving fundamentals ahead, especially in markets where job growth is steady and household formation recovers. “As new starts have slowed and the 2023–2024 construction surge moves through lease-up, many markets should see improving fundamentals,” she said.
Dunton concluded that rent growth in 2026 will likely mirror that of 2025, though outcomes will continue to depend heavily on region and market dynamics. “Strong, supply-disciplined markets should continue to outperform,” he said.
**Contributors:**
– Laura Khouri, Western National Property Management
– Dwight Dunton, Bonaventure
– David Fletcher, Excelsa Holding
– Brian Connolly, Feasibly
– Karlin Conklin, Investors Management Group
*An earlier version of this article appeared on ApartmentBuildings.com.*
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