The U.S. multifamily market limped across the finish line in 2025, with national average rents posting zero year-over-year growth after a weak fourth quarter wiped out earlier momentum, recent data shows.

According to Yardi Matrix’s December National Multifamily Report, the average advertised rent fell $5 in December to $1,737, ending the year where it began.

This marks the first time since 2020 that rents failed to rise nationally, per Yardi Matrix’s data — a year blighted by the pandemic and its subsequent economic impact. And prior to that, the last year when rent levels did not rise nationally was 2010, in the wake of the 2008 financial crisis.

The slowdown was particularly pronounced at the end of the year. Rents declined by an average of $16, or 0.9%, in the fourth quarter, marking the weakest quarterly performance since the global financial crisis nearly two decades ago.

The Yardi report reinforces data from other industry participants on the cost of rent. A recent LendingTree analysis found that monthly rent was cheaper than the average mortgage payment in all 100 of the nation’s top metros.

Yardi Matrix analysts noted that regional performance remained sharply divided. Rent growth was concentrated in coastal markets and the Midwest, where supply has been limited. New York led major metros with 5.8% year-over-year growth, followed by Chicago at 3.6% and Kansas City at 2.6%. 

Conversely, some markets that had previously boomed during the pandemic era faced significant headwinds, with Austin (-5.2%), Phoenix (-4.1%) and Denver (-3.9%) posting the steepest declines among the top 30 metros.

“Current market conditions reflect both cyclical and structural factors,” the report stated, noting that the 22% rent surge between 2021 and 2022 made normalization inevitable. 

The data shows that occupancy rates have remained relatively stable since 2024, with owners focusing on tenant retention through concessions and lower renewal increases.

However, the single-family rental (SFR) build-to-rent sector showed strain. Advertised SFR rents fell to $2,180 in December, down $4 (or 1%) compared to the previous year. Although seemingly small, this represents the largest drop in more than a decade, according to Yardi Matrix’s data.

Nonetheless, SFR occupancy rates remained solid at 94.9%, with homeownership remaining too expensive for many people due to a combination of high prices, unfavorable mortgage rates and reduced supply.