On the back of four consecutive months of negative rent movement, the multifamily market also registers the weakest yearly growth since 2021.

Highlights:

• The average U.S. advertised asking rent dropped $8 to $1,740 in November, still 0.2% up year-over-year.
• Rates dropped 50 basis points short-term, with all but one of Yardi Matrix’s top 30 markets recording rent declines.
• As the Opportunity Zone program becomes permanent, analysts believe more than 1 million units could debut in the next decade.
• SFR-BTR average advertised rents slid $10 to $2,185 in November, dropping 0.5% year-over-year.

Advertised annual rent growth hasn’t been this sluggish since 2021

The national multifamily market entered its fourth consecutive month of negative advertised rent growth. The average rate dropped $8 to $1,740 in November, however, still growing 0.2% year-over-year. Coastal and Midwest metros registered the highest increases, with New York leading the way (5.7%), followed by Chicago (3.8%) and the Twin Cities (3.2%), as well as San Francisco (2.6%). High-supply markets experienced rental deceleration, such as Austin (-5.0%), Phoenix and Denver (-4.1% each), Las Vegas (-2.1%) and Dallas (-2.0%).

National advertised rents slid 50 basis points month-over-month, with all but one of Yardi Matrix’s top 30 markets stagnating or recording short-term losses. Twin Cities’ rates went up 0.5% and Chicago’s stood unchanged at 0.0%, while all other metros experienced rent contractions. Notably, metros that had robust yearly rent growth suffered steep short-term declines, including New York (-1.2%) and New Jersey (-0.9%). Other markets with rent depression comprise Austin and Seattle (-1.0% each) and Denver (-0.9%).

The national occupancy rate clocked in at 94.7% in October, unchanged from last year. The index retained its resilience across markets such as Atlanta (0.9% growth year-over-year), the Twin Cities (0.5%), San Francisco and Phoenix (0.4% each). Several markets with elevated levels of new supply, such as Indianapolis (-0.5%), Washington, D.C. (-0.3%), as well as Detroit, New Jersey and Miami (-0.2% each), witnessed a decline in occupancy. What’s more, October’s absorption figures at a national level were the lowest in several years.

Permanent Opportunity Zones promise an investment and development boost

Introduced in 2017, the Opportunity Zone incentive program has attracted roughly $350 billion in investment, mostly from middle-market entities. However, that volume might increase as the bill is slated to become permanent, potentially attracting private investors. The permanent enshrinement will also modify the program, redrawing tracts and reducing qualifying thresholds by half.  Moreover, analysts project about 1 million housing units to debut across the next decade. For reference, 600,000 apartments came online in OZs since 2018, with, according to the Economic Innovation Group, about half rising directly as a result of the incentive.

Single-family build-to-rent rates fell $10 to $2,185 in November, dropping 0.5% year-over-year. The rents also declined $28 since they peaked at $2,213 in July. Although a winter slowdown is to be expected, this November was quite different than previous years, when the month witnessed 1.4% increases. Midwest markets such as Twin Cities and Chicago (7.9% each) registered the steepest increases. Sun Belt metros continued posting negative rent growth, including Austin (-3.9%), Charleston (-3.8%) and Pensacola (-2.5%).

Read the full Yardi Matrix Multifamily National Market Report: November 2025.

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Sticky advertised rental decline continues pressing the multifamily market.

Highlights:

• The average U.S. advertised asking rent slid $4 to $1,743 in October, up 0.5% year-over-year.
• Just two of Matrix’s top 30 markets experienced rent growth month-over-month, with the average national figure ticking down 0.2%.
• During the third quarter, multifamily absorption clocked in at 110,000 units, below the average of 185,000 recorded in the first and second quarters.
• SFR-BTR average advertised rents declined $6 to $2,195 in October, unchanged from last year.

Previous short-lived problems transition to medium-term issues

The national multifamily market continued a weak showing as the average advertised rent fell $4 to $1,743 in October. Year-over-year rent growth remained unchanged at 0.5%. Gateway and Midwestern markets posted the strongest gains, with New York taking the lead (4.7%), followed by Chicago (3.9%), San Francisco (3.4%) and Twin Cities (2.9%). Sun Belt and Western metros had a subdued rent growth, such as Austin (-4.8%), Denver (-4.1%), Phoenix (-3.3%) and Las Vegas (-1.7%).

Overall advertised rents slid 0.2% month-over-month in October. Lifestyle rates dragged the index lower, dropping 30 basis points, as opposed to Renter-by-Necessity, which fell just 10 basis points. Just two out of the top 30 Yardi Matrix markets registered any gains, those being New Jersey and Detroit (0.1% each). The steepest declines occurred across New York (-1.7%), Austin (-1.0%), Raleigh and Denver (-0.8% each). Notably, none of these top markets recorded an increase in Lifestyle rates, while RBN rate movement was slightly more split, yet still heavily tilted toward negative growth, with 20 metros being in the red.

The average multifamily occupancy clocked in at 94.7% in September, up 10 basis points year-over-year. Occupancy gains were recorded in Atlanta (up 0.9% year-over-year), Charlotte (0.5%), Phoenix, Nashville and Orlando (0.3% each), despite being high-supply markets.

Absorption stumbles with the largest decline felt across the Midwest

Although occupancy remained stable, just 110,000 units were absorbed during the third quarter. By historical standards, the figure may not be bad, but it signals a downward trend when compared to the average of 2025’s first two quarters—185,000 apartments. This deceleration was heightened across the Midwest (down 75% quarter-over-quarter), followed by the Southeast (55%), Southwest (43%), West (35%) and Northeast (29%). Among the Matrix top 30 markets, Charlotte, Austin, Nashville and Raleigh-Durham had more than 5% of stock absorbed year-to-date through September.

Single-family build-to-rent rates ticked down $6 to $2,195 in October, unchanged from last year. Midwest markets saw the largest increases, such as Twin Cities and Chicago (7.0% each) and Grand Rapids (5.4%), while weak rent growth was found across Austin (-4.2%), Jacksonville (-1.9%), Nashville (-1.3%) and Dallas (-1.0%). Meanwhile, the sector’s overall occupancy rate was strong at 95.1% in September, increasing 10 basis points year-over-year.

Read the full Yardi Matrix Multifamily National Market Report: October 2025.

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Affordable housing NOI rebounds with solid growth.

Report highlights:

• Average NOI per affordable housing unit stood at $6,886 in August.
• The figure was up 5.6% compared to January.
• Gross income clocked in on average at $15,440 per affordable unit in August.
• Average affordable housing unit expenses were up 31.5% since March 2020, landing at $8,554 in August.

Income growth continues outpacing expenditure increases

As income growth accelerates and the increase in expenses eases, affordable housing net operating incomes continue to trend higher. In August, the average NOI per affordable unit clocked in at $6,886, representing a 5.6% uptick compared to January, according to a Yardi Matrix analysis of 7,018 fully affordable properties across 116 markets. The figure also rose 7.4% last year, putting an end to a sluggish period in 2021 (-0.1%), 2022 (0.8%) and 2023 (2.8%).

The average gross income stood at $15,440 per affordable unit in August, representing a 3.7% growth compared to January. Last year, the figure increased 6.5%, with 2023’s figure standing at 5.7% and 2022’s at 4.6%. Operators were able to increase the revenue stream starting in 2024 as HUD’s formula for the maximum allowable rent, which accounts for variables such as inflation and the area median income, permitted higher rate hikes. Additionally, HUD also modified Section 8’s formula this year, adjusting it to account for wages, benefits, utilities and insurance, which also allowed for more subsidies.

Expenses, on average, were up 2.3% year-to-date through August per affordable unit, landing at $8,554. For reference, this figure rose 35.1%, or $2,223 per unit, between March 2020 and August 2025. Expenditure growth outpaced income increases toward the turn of the decade as insurance, maintenance, administrative and utilities costs ticked up significantly. Insurance alone rose 128% since the first quarter of 2020, although the growth decelerated significantly as premiums only ticked up 0.2% year-to-date through August. Maintenance and repairs exhibited double-digit growth between 2021 and 2023 but similarly slowed down to low single-digit increases in 2024 and 2025.

How expenses, demand and rent collection shift NOI dynamics

NOI did not exhibit the same trajectory across all markets. Of Yardi Matrix’s top 30 metros, 5 witnessed a double-digit growth during the first eight months of 2025, while six saw a negative movement. The metros with strong income growth also benefited from a decline in insurance premiums, such as Raleigh (-7.4%) and Columbus (-13.8%). Markets with negative NOI saw weak revenue growth, in addition to above-trend expense increases. Austin is such a metro, where 25% of multifamily stock debuted in the past 3 years, leading to market-rate rents overlapping with affordable rents, which in turn resulted in higher income-restricted turnover and vacancy. Other metros, such as Seattle, Atlanta and Washington, suffer from uncollected rents, putting downward pressure on incomes.

There’s much to look forward to in 2026, including a boost in affordable housing development and preservation thanks to an increase in LIHTC allocation, as well as strong demand across low- and medium-income households. However, the sector will not be without potential challenges. These issues could include income reduction, as HUD’s formula may not allow for significant rent growth, and other proposed regulations may alter housing voucher programs. Additional problems may arise from inflationary pressure on expenses, with tariffs potentially affecting the price of materials, labor and services. With affordable properties being more exposed to expenses than multifamily, expenses eat up to 55% of revenue across income-restricted properties, versus 44% in traditional multifamily—the sector may run with tighter operating margins.

Read the full Yardi Matrix Affordable Housing Market Report: October 2025.

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Rates slip in September, leaving the rental market reeling, according to Yardi Matrix data.

Highlights:

• The average U.S. advertised asking rent fell $6 to $1,750 in September, up 0.6% year-over-year.
• More than two-thirds of Matrix’s top 30 markets experienced rental decline month-over-month, with the national figure dropping 0.3%
• Household formation is on track to decline over the next decade, though multifamily impact may not be as strong.
• SFR-BTR average advertised rents ticked down $15 to $2,194 in September, marking the worst drop since 2015.

Multifamily marches on, despite monthly hiccup

The national multifamily market experienced the worst September since 2009 as the average advertised asking rents fell $6 to $1,750. Annual growth stood at 0.6%, down 30 basis points. Coastal and Midwestern markets experienced a yearly uptick with New York leading the way at 4.8%, followed by Chicago (3.9%), the Twin Cities (3.4%) and San Francisco (3.3%). Metros encumbered by supply continued to underperform, such as Denver (-4.3%), Austin (-4.0%), and Phoenix (-3.3%).  

Short-term losses in the average advertised asking rent department stood at 0.3 percent in September. Notably, just six of the top 30 Yardi Matrix markets registered any gains. The top performers were coastal markets, including New York and San Francisco (0.5% each). Sun Belt markets continued feeling rental moderations amid supply abundance as most saw rents contract 0.5% or more. Other notable metros with slight performances included Boston (-1%), Detroit (-0.4%), Chicago and Columbus (-0.5% each).

The national occupancy rate remained unchanged over the year, at 94.7% in August. Few large swings in either direction occurred, with the largest increases occurring in Atlanta (0.8% year-over-year growth), Charlotte and the Twin Cities (0.6% each), while Denver saw the steepest decline (-0.4%). Only Austin and Houston were below the 93.0% threshold, an improvement compared to late spring and early summer when the occupancy of five markets stood under that benchmark.

Household formation to dampen, yet demand may remain unscathed

One of the key drivers of multifamily demand, household growth, is likely to moderate across the next decade, according to a study by the Joint Center for Real Estate Studies at Harvard University. It is expected that new households may total 860,000 annually, down from 1.5 million per year. However, as fewer home acquisitions are also projected, it is possible that multifamily demand may not be as affected.

Over in the single-family build-to-rent sector, the national advertised rates fell $15 to $2,194 in September, unchanged over the year. Last month’s drop marked the poorest performance since 2015, while this year’s sluggish rent growth is also the weakest in a decade. Occupancy remained unmoved year-over-year, clocking in at 95.1% in August. Demand is likely to remain solid as many potential home buyers are priced out of the market, which may also drive a rental rebound as new stock diminishes and supply tightens.

Read the full Yardi Matrix Multifamily National Market Report: September 2025.

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How affordable and market-rate competitiveness affects performance and what are its driving forces, according to Yardi Matrix data.

Report Highlights

• Market-rate and affordable housing competitiveness varies greatly at a macro level, but also on a submarket-by-submarket basis.
• The metric affects income-restricted performance, whereby highly competitive markets tend to register lower occupancies.
• The absolute level of market rents, supply growth and age of stock influence a market’s competitive levels.
• Of the top 30 U.S. markets, one-third was highly competitive, while another was moderately matched-up and the remaining had no competition.

Competition affecting affordable housing performance

With construction and financing costs on the rise, efficient, affordable capital deployment becomes paramount. One key factor to consider before underwriting a project is the competitiveness between market-rate and income-restricted properties, which directly impacts affordable housing performance. A study of Yardi Matrix’s national database, comprising 23 million units, of which 3.5 million are affordable, found that competition varies both across regions and at a submarket level. This phenomenon occurs when income-restricted and market-rate rents are considered affordable to households earning similar incomes. Rates are deemed affordable if they do not exceed 30% of gross household income, based on government standards.

The data provider’s research registered that one-third of the top 30 U.S. metros were highly competitive, where at least half of the market-rate units’ rents overlapped with their income-restricted counterparts. Another third was found to be moderately matched, with 25% to 50% of conventional apartments in competition, while the remainder had less than 25% of market-rate units overlapping, including seven markets where competitiveness levels were zero. Although each metro had its own unique factors, the study identified several key drivers correlating to the competitiveness between market-rate and income-restricted properties.

Absolute market rents, supply growth and age of stock influenced the level of rental overlap. Markets where the average advertised asking rates surpassed $2,500, including New York City, San Francisco, Los Angeles and Miami, had sparse competition. Conversely, metros with rents under $1,500, such as Las Vegas, Columbus, Houston and Detroit, presented moderate to high levels of overlap. Somewhat tying into the previous factor, supply growth fostered a competitive environment as it stifled rent growth in markets such as Austin and Dallas. Lastly, the age of a market’s inventory influenced the level of competition. Metros with newer construction, which tends to concentrate in higher-end luxury product, drove less rental overlap. The reverse is also true, exemplified by Detroit and Baltimore, where an aging stock softened market-rate rents, spurring on more affordable competition.

Competitiveness varies within metros

The study found the same wide competitiveness variance at a submarket level within metros. In Boston, which had a 0% overall competitive score, several northern outer suburbs, such as Amesbury, Newburyport and Townsend, posted higher rental overlaps on account of the age of stock and distance to the city center. Similarly, moderately matched-up metros can contain areas with less competition. Take Denver for instance, where the downtown and outer suburbs’ higher-quality product commands rents in excess of $2,500, drawing less rental parity with the affordable housing sector.

Competitiveness becomes a key variable as it correlates with affordable housing occupancy. Most markets bearing high market rents and low levels of overlap registered an occupancy rate upward of 95%. The reverse was also true, as highly competitive markets with rents below average had the index between 93% and 94%. Therefore, to ensure the complex capital stack is deployed efficiently and purposefully, developers ought to account for every metric, especially competitiveness, before committing to a project.

Read the full Yardi Matrix Affordable Housing Market Report: September 2025.

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Read the latest Yardi Matrix National Multifamily Market Report.

Cyclical variance dampens multifamily performance, according to Yardi Matrix data, while legislators aim to boost housing stock.

Report Highlights

• The average U.S. advertised asking rents declined $1 to $1,755 in August, though still up 0.7% year-over-year.
• Rates contracted 0.1% nationally on a monthly basis, with most of the top 30 markets experiencing a slowdown.
• Legislators aim to foster supply growth by introducing more than 400 pro-housing bills.
• SFR-BTR average advertised rents reached a new record in August, landing at $2,208, up 0.6% year-over-year.

Rents moderate amid summer slowdown

The U.S. multifamily average advertised asking rate experienced seasonal variance, dropping by $1 to $1,755 in August, up 0.7% year-over-year. The growth rate cooled 10 basis points annually as well. Markets across the Midwest and Northeast overperformed, with Chicago (4.0%) being the frontrunner, followed by Columbus (3.3%), Twin Cities (3.2%) and New York (3.0%). Several supply-heavy Sun Belt and Mountain West metros recorded downward rent adjustments, such as Austin (-4.5%), Denver (-3.8%), Phoenix (-2.8%) and Dallas (-1.8%).

On a monthly basis, advertised rents slid 0.1% in August. The summer lull was felt across a majority of the Matrix top 30 markets, as just 8 metros posted gains for the month. Markets with limited inventory posted mixed results, with Philadelphia’s rate trending 0.7% higher while Detroit (-0.6%), San Francisco and New York (-0.4% each) turned negative. As supply growth eased and demand retained momentum, select Sun Belt metros turned the tide, such as Atlanta and Charlotte (0.3% each), as well as Raleigh (0.1%).

The national occupancy rate remained stable at 94.7% in July, unchanged year-over-year. Sturdy absorption throughout the Sun Belt resulted in positive adjustments across Atlanta (0.6%), Charlotte (0.5%), Raleigh, Orlando, Miami and Phoenix (0.1% each). Just Nashville (-0.2%), Austin and Las Vegas (-0.1% each) registered a decrease in occupancy. Considering that many of these markets expanded their stock by more than 5% over the past year, such robust results underscore a resilient demand.

Supply growth draws legislative attention

Housing inventory expansion was also on the minds of many legislators. More than 400 pro-housing bills were introduced, with 70 signed into law and 30 awaiting a governor’s signature, according to the National Council of State Housing Agencies. California passed an act to streamline environmental reviews and expediate permitting procedures, as well as bolster financing capabilities. Texas officials are likewise considering zoning adjustments by easing lot sizes, reducing construction restrictions and allowing residential development in commercial zones. Michigan and Oregon passed bills aiming to increase subsidies and incentives for attainable housing.

The national advertised rates for single-family build-to-rent homes climbed 0.6% year-over-year, reaching a new record of $2,208 in August. Institutional landlords faced increasing competition from former homeowners who opted to rent rather than sell amid high mortgage rates and sluggish demand. Many Sun Belt markets experienced this phenomenon, yet rent growth held steady with metros such as Charlotte (1.4%), Houston (0.9%) and Miami (0.7%) posting positive results. Occupancy rates remained steady across the sector at 95.0% in July, down 20 basis points year-over-year.

Read the full Yardi Matrix Multifamily National Market Report: August 2025.

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Read the latest Yardi Matrix National Multifamily Market Report.

Though multifamily rent growth moderates, operating costs are also losing steam, according to Yardi Matrix data.

Report highlights

• The average U.S. advertised asking rent increased $2 to $1,754 in July, up 0.7% over the year. 
• On a monthly basis, rates grew 0.1%, though several metros upended long stretches of negative rent movement. 
• Expense-related pains eased, as costs climbed just 1.3% and 1.7% per market-rate and affordable unit during the first half of 2025.  
• SFR-BTR average advertised asking rates were up 0.4% year-over-year in July, settling at $2,205. 

Multifamily rents still trend higher, though growth rate cools

The U.S. multifamily average advertised asking rate recorded positive movement in July, albeit at a slower pace. Rents went up $2 to $1,754, for a yearly increase of 0.7%. The Midwest and coastal markets posted the highest gains, with Chicago (4.1%) leading the pack, followed by Columbus (3.9%), Detroit (3.5%) and New Jersey (2.7%). Metros overflowing with supply continued trending negative, including Austin (-4.6%), Denver (-3.9%), Phoenix (-2.8%) and Las Vegas (-1.7%). 

On a short term basis, average advertised rents inched up by 0.1% across the nation. Many of the overperformers on an annual basis continued to solidify their positions with strong monthly gains, such as Detroit (1.0%), New York (0.9%), Columbus (0.8%) and Portland (0.6%). Some markets transitioned from growth to decline this month, including Kansas City (-0.7%) and Indianapolis (-0.4%). Conversely, select metros reversed course from contraction to rent growth, such as San Francisco (0.4%), Atlanta and Austin (each 0.3%). 

The national multifamily occupancy rate stood at 94.7% in June, unchanged in four months and down just 0.1% over the year. Strong demand—more than 300,000 units absorbed during 2025’s first half—helped keep occupancy in check despite abundant supply. Across Matrix’s top 30 markets, New York City had the highest occupancy midway through 2025, settling at 98.4%, followed by New Jersey (97.1%) and Boston (96.5%) and San Diego (96.1%).  

Tempered expense growth might offset sluggish rent improvement

With the income-side of the equation receiving much of the attention, the multifamily expenses might be overlooked. Yet, during 2025’s first half, market-rate and affordable housing expenses per unit grew by 1.3% and 1.7%, respectively. This increase is substantially below previous growths—market-rate peaked at 8.1% per unit in 2022 and affordable crested at 8.4% the year after. Insurance costs, which increased more than 120% since 2019, played a critical role in the rise of expenses.   

Across the single-family build-to-rent sector, the national advertised asking rent went up $3 to $2,205 in July, increasing 0.4% year-over-year. Growth leaders included Chicago (5.9%), Harrisburg (4.9%), Columbus and Kansas City (each 4.8%), as well as Twin Cities (3.5%). Meanwhile, the national BTR occupancy stood at 95.0% in June, sliding down 30 basis points over the year. Yet, developers could build amenities to attract more tenants, should the costs pencil out, according to the National Rental Home Council. 

Read the full Yardi Matrix Multifamily National Market Report: July 2025.

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During the first half of the year, rent grew at half the rate of pre-pandemic cycles, according to Yardi Matrix data

Report highlights:

• The average U.S. advertised asking rent increased $3 to $1,749 in June, up 0.9% year-over-year.
• Short-term, rent grew 0.2% month-over-month, with gateway and tech hub markets leading the way.
• Half of renters spend more than 30% of their income on housing and utilities, with 27% of renters spending upward of 50%.
• SFR-BTR average advertised asking rent climbed for the first time past the $2,200 mark in June.

Past 2025’s midway point, the multifamily market remains steady with room for improvement

The average U.S. advertised asking rent rose $3 to $1,749 in June, while increasing 0.9% year-over-year. Meanwhile, the figure also grew 1.2% during the first half of 2025, below the average pre-pandemic growth rate of 2.4%. Midwestern markets recorded the strongest rental improvement with Chicago (3.6%) leading the way, followed by Columbus (3.3%) and Kansas City (3.2%). Markets burdened by delivery gluts posted negative rent growth, including Austin (-4.7%), Denver (-3.9%), Phoenix (-2.6%) and Orlando (-1.2%).

Short-term, the average advertised asking rent increased 0.2% in June. Gateway and tech hub markets led the rent gains with Chicago (0.7%) on top, followed by Boston (0.6%), Columbus (0.4%), San Francisco and Seattle (both 0.4%). Notably, Denver (0.3%) had its fourth consecutive rent growth month, following a prolonged period of stagnation driven by high supply. Of the top 30 metros, four markets recorded negative rent movement, including Austin (-0.3%), Phoenix (-0.2%), Tampa and Miami (both -0.1%).

The national occupancy rate stood its ground, settling at 94.6% in May, unchanged over the past 7 months. However, the index was down 20 basis points year-over-year, impacted by record deliveries. Resilient demand—more than 250,000 units absorbed through May—helped stabilize the market. Only 3 metros witnessed a shift larger than 0.3%: Chicago (0.4% year-over-year), Denver (-1.0%) and Phoenix (-0.6%).

Supply growth, the solution for affordability issues

The national advertised asking rents climbed 27% in the five years ending May 2025, Yardi Matrix data shows. This increase has led to renters’ budgets becoming increasingly strained. Half of renters spent more than 30% of their income on housing and utilities in 2023, according to the Harvard Center for Joint Housing Studies. Additionally, 27% spent more than half of their income on housing. Since 2023, high-supply markets witnessed rent retraction, including Austin (-11.2%), Phoenix (-6.5%) and Orlando (-4.1%), adding further credence to the argument that inventory growth is the best solution to the affordability problem.

Single-family build-to-rent average advertised asking rents increased $4 to $2,201 in June, while also being up 0.7% year-over-year. This marked the first time the rate passed the $2,200 mark. Mirroring its top multifamily performance, Chicago also led BTR rent growth with a 6.1% increase year-over-year, followed by Kansas City (5.5%), the Inland Empire (4.5%) and Harrisburg (4.1%). Negative rent movement was recorded in markets such as Raleigh-Durham (-3.9%), Austin (-2.9%), Tampa (-2.5%) and Cleveland (-2.3%).

Read the full Yardi Matrix Multifamily National Market Report: June 2025.

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Explore the layers of affordable housing capital stacks with data from the latest Yardi Matrix report.

Report highlights:

• Affordable housing entities utilized more than 250 different affordable housing programs.
• Federal initiatives were most common, with 11,221 properties utilizing such funds.
• Tax-exempt bonds were the go-to federal program, found in the capital stack of 3,288 properties.
• State-wide initiatives clocked in at roughly 100, subsidizing more than 2,000 properties.

Taking stock of the affordable housing initiatives

In response to the imbalance between income growth and housing cost increases, government entities are addressing the need for affordable housing through various subsidies. More than 250 such programs, including federal, state and local initiatives, were found within the capital stacks of 26,000 fully affordable properties inside Yardi Matrix’s database. These government contributions may manifest in various ways, such as tax credits and deferrals, low-cost financing, grants and density bonuses, as well as direct renter subsidies. Companies can access the benefits in exchange for limiting rents and catering to certain demographics, such as low-income households, the elderly and the poor, among others.

The federal government was the number one source of funds for affordable housing endeavors, with 11,221 communities using such capital. One of the most prominent initiatives—having funded 3,288 properties—was the tax-exempt bonds issued for projects serving low-income residents. Developments meeting the requirements for this program automatically qualify for 4% LIHTC, which is designed to cover 30% of construction costs over a 10-year period. Other subsidies involve the U.S. Department of Housing and Urban Development, with its annual grants to public housing authorities and Section 8 vouchers, aiming to assist tenants in paying a portion of their rents.

At a state level, nearly 100 different affordable housing subsidies could be found within the capital stack of more than 2,000 properties. California led across all states, having 22 programs in use by 974 communities. Some of the Golden State’s most-used incentives are meant to spur development, such as the Density Bonus, which helps in bypassing local zoning limits, as well as the Multifamily Housing Program that provides construction debt. Florida ranked second with five initiatives, including the State Apartment Incentive Loan. SAIL also addresses the housing shortage by providing low-interest debt that may cover up to 25% of development costs.

Policy and regulation changes

A tax and budget bill making its way through the chambers of Congress may impact the affordable housing subsidy landscape. Its provisions would see an increase in 9% LIHTC allocations and reduce the requirements for attaining tax-exempt bonds, as well as a growth in the funds earmarked for Native American communities and a renewal of the Opportunity Zone program. However, the downside is that the bill also proposes slashes to Section 8 funds and various affordable housing debt programs, in addition to a reduction in HUD’s staff.

Policy changes aren’t the sole pressing matter on the minds of affordable housing developers. The attainment of subsidies can become a complex matter involving laborious regulations, which may expand a project’s timeline and incur additional costs. However, certain proposals aim to streamline the process by simplifying compliance and reporting requirements, as well as aligning LIHTC regulations with other federal programs.

Read the full Yardi Matrix Affordable Housing Market Report: July 2025.

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Recovery signs from markets with weak rent performance over the last year, according to Yardi Matrix’s latest national multifamily market report.

Report highlights:

• The average U.S. advertised asking rent rose by $6 to $1,761 in May, up 1.0% year-over-year.
• On a month-over-month basis, rent growth was equal across property segments, up by 0.3%.
• Signs of rebound emerge from metros with previously negative rent movement.
• SFR-BTR advertised asking rents rose for the fourth consecutive month in May to $2,183.

Slow but steady achievements

The average U.S. advertised asking rent increased by $6 to $1,761 in May, maintaining at 1.0% year-over-year, a rate it stayed below over the period. Highest rent growth was recorded in gateway and secondary markets in the Northeast and Midwest, led by New York City (5.7%), Kansas City (4.0%), Philadelphia (3.4%) and Columbus (3.3%). Meanwhile, many high-supply metros continued to struggle, with the largest rent declines in Austin (-5.2%), Denver (-3.5%), Phoenix (-3.4%) and Orlando (-1.8%).

On a monthly basis, advertised asking rents rose 0.3%, leveled across asset classes. Of Yardi Matrix’s top 30 metros, only three registered declines—Tampa (-0.6%), Phoenix and San Diego (both -0.3%). Leading growth was Kansas City, up by 1.0% in May, followed by New Jersey and Denver (both 0.8%). Denver was one of the metros that signaled a recovery in rent growth, alongside Portland (0.7%), San Francisco (0.6%), and Seattle (0.4%).

The national occupancy rate fell by 30 basis points year-over-year through April to 94.4%, the lowest level since 2013. Sustained supply growth has contributed to occupancy decreases in two-thirds of the Matrix top 30 metros, led by Denver (-1.2%) and Phoenix (-0.9%). Five markets had occupancy rates below 93.0%, including Phoenix (92.4%), Austin (92.5%), Dallas and Houston (both 92.6%).

All factors lead to guarded optimism

Risks remain higher than normal, keeping the multifamily market in a guardedly optimistic state, as interest rates are anticipated to remain elevated due to the impact of tariff-driven inflation concerns. Meanwhile, policy wins in the budget process, including a 12.5% increase in LIHTC funding and the renewal of the Opportunity Zone program, are promising developments for the industry. Housing advocates estimate that these policies could drive the development of more than 500,000 housing units.

Single-family build-to-rent advertised asking rents rose $3 to $2,183, close to the all-time high of $2,185 reached in May 2024. SFR-BTR occupancy fell by 60 basis points year-over-year to 94.8% in April. Leading in rent growth in May were Detroit (5.0%), the Inland Empire (4.9%) and Kansas City (4.1%). Negative rent performance was recorded in Jacksonville (-0.1%), Austin (-4.4%), Phoenix (-2.5%), Tampa (-3.3%) and Dallas (-2.1%). These markets also registered some of the largest declines in home prices, per Redfin: Jacksonville (-3.4%), Austin (-3.0%), Phoenix (-2.1%), Tampa (-1.3%) and Dallas (-0.8%).

Read the full Yardi Matrix Multifamily National Market Report: May 2025.

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