The average advertised rent of a multifamily unit in the U.S. increased $5 month over month in March to $1,755, according to a report from Yardi Matrix. But year-to-date rent growth is weaker than is typically seen in the first quarter and rents are down 1% year over year, as supply has exceeded demand in several major metropolitan areas.

High-supply metros that have seen multifamily rent prices fall the most over the past year include Denver, Phoenix and Austin, Texas. Each of those cities saw year-over-year rents fall at least 3%, with Austin experiencing the largest decline at 5.4%.

But multifamily rents increased overall in the Northeast and Midwest over the past year, according to Yardi, led by New York City at 5.5%, Chicago at 3.7% and Kansas City at 3.7%.

Yardi noted that its multifamily rental outlook for the rest of the year is undetermined because of broader economic uncertainty.

“Economic volatility is extremely high due to the imposition of tariffs, the rising number of layoffs and dwindling consumer confidence,” the report stated. “And cutbacks on immigration will impact demand to some degree.”

But Yardi also observed positive signs from investors, noting that the large volume of multifamily loans coming due in 2025 provides a window of opportunity for investors.

“[Lenders] are likely to be tougher with borrowers than they were a year or two ago,” Yardi stated in the report. “That creates opportunities for investors to provide takeout financing or buy the loans from banks.”

On the single-family build-to-rent side, advertised rates also increased $5 in March to $2,169. According to Yardi, the gains were concentrated in the renter-by-necessity segment, meaning people who lack the financial means to buy a home. That segment of the single-family rental market was up 2.3% year over year last month.