SANTA BARBARA, Calif., January 14, 2026 – Tax incentives targeted at underserved and high-cost environments comprise the centerpiece of the U.S.’s affordable housing strategy, according to new research completed by Yardi^® Matrix.

The federal government’s long-term extension of the Opportunity Zones program and double-digit expansion of Low-Income Housing Tax Credit allocations last year “signal a policy landscape increasingly oriented toward location-based tax incentives that align capital with affordability needs,” states a new Yardi Matrix national report. These actions, along with other measures, aim to “redistribute investment toward locations where development has historically been difficult to achieve.”

More than 348,000 affordable units are planned or under construction within Opportunity Zones and Difficult Development Areas, indicating “how incentives are reshaping supply pipelines at a time when longstanding affordability gaps require sustained production,” the report notes.

Phoenix, Dallas, Miami and Los Angeles have the most units under construction in Difficult Development Areas, which have high land, construction and utility costs relative to the area median income. Phoenix, Los Angeles, New Jersey and Salt Lake City lead in units under construction within the purview of Opportunity Zones, a program designed to amplify development in low-income submarkets.

With “geographically targeted federal incentive programs [playing] a larger role in shaping investment and development strategies,” affordable housing investors and developers will need to determine “which incentive structure aligns with a market’s underlying cost, demand and capital dynamics,” according to Yardi Matrix.

Get more in-depth analysis of the policy changes of 2025 that will drive affordable housing strategies from the January 2026 Yardi Matrix National Affordable Housing Report.

Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, single-family rentals/ build to rent, affordable housing, student housing, self storage, office, industrial, retail and vacant land property types. Email matrix@yardi.com, call (480) 663-1149 or visit yardimatrix.com to learn more.

About Yardi
Yardi^® develops industry-leading software for all types and sizes of real estate companies across the world. With more than 10,000 employees, Yardi is working with our clients to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.

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SANTA BARBARA, Calif., January 13, 2026 – A decline in U.S. advertised multifamily rents in December 2025 nullified year-over-year rent growth from earlier in the year, new research from Yardi^® Matrix documents.

The average U.S. advertised rent fell $5 to $1,737 in December, a 0.3% month-over-month decline that closed out 2025 with 0% year-over-year growth. The market’s weakest quarterly showing since the global financial crisis raises “concerns about near-term multifamily demand,” Yardi Matrix notes in a new national multifamily report.

“Demand has slowed amid flattening job growth and the impact of immigration policy,” the report says, even as occupancy has held firm and supply absorption remains healthy by historical standards.

Rent growth in 2025 was concentrated in coastal markets and the Midwest. The weakest performance was largely confined in the Sun Belt, where elevated new supply weighed on pricing.

Sales volume in 2025 totaled about 10% higher than 2024’s total, with activity highest in secondary and Sun Belt markets such as Dallas, Seattle, Phoenix, Miami and Atlanta.
Looking to the new year, Yardi Matrix analysts note that “despite ongoing economic uncertainty, GDP growth in the fourth quarter points to improving momentum. Greater stability in 2026 could help lift consumer confidence and support a gradual rebound in rental demand.”

Get more insights on rents, occupancy, transactions and the single-family build-to-rent segment in the Yardi Matrix National Multifamily Report for December 2025.

Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, single-family rentals/build to rent, affordable housing, student housing, self storage, office, industrial, retail and vacant land property types. Email matrix@yardi.com, call (480) 663-1149 or visit yardimatrix.com to learn more.

About Yardi
Yardi^® develops industry-leading software for all types and sizes of real estate companies across the world. With over 10,000 employees, Yardi is working with our clients to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.

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San Jose entered the fourth quarter of 2025 with multifamily fundamentals holding up relatively well considering the wider economic climate. Average advertised asking rents slid 0.1%, on a trailing three-month basis through October, to $3,310—10 basis points ahead of the nation—following a six-month period of slowing gains. Year-over-year, however, San Jose asking rents were up 3.7% through October, ahead of both the nation (0.5%) and all other major California markets, including San Francisco (3.4%), Los Angeles (0.3%), Sacramento (-0.1%) and San Diego (-0.5%), according to the U.S. multifamily market report.

Further, occupancy in stabilized assets climbed 40 basis points, to 96.7%, once again outpacing the 94.7% U.S. figure. Silicon Valley employment slid 0.2% through August 2025, down to 100 basis points behind the U.S. and continuing an eight-month streak of contractions. In the 12 months ending in August, the metro lost a net 2,000 jobs, with education and health services standing out as a strong performer (up 8,600 positions), while professional and business services lost the most jobs (-8,100). Several ongoing projects promise to boost the health-care sector, including a new, $422 million inpatient psychiatric facility.

Completions slowed down across metro San Jose, with developers adding 3,769 units in 2025 through October. Meanwhile, investment activity picked up, with $1.5 billion trading—already exceeding every other year since at least 2015.

Read the full Yardi Matrix San Jose Multifamily Market Report: December 2025

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Sacramento’s average advertised asking rent was down 0.2%, on a trailing three-month basis through October, to $1,959, mirroring national trends, according to the latest Yardi Matrix Sacramento multifamily market report. Meanwhile, even as supply accelerated beyond the market’s regular pace, occupancy in stabilized assets remained flat year-over-year, at 95.3%, and above the 94.7% U.S. rate. Sacramento employment gains continued to soften, at 0.6% through August, and 20 basis points below the U.S. average, as report in the national multifamily market report.

Education and health services led growth, adding 10,600 net positions, but the metro lost a combined 12,900 jobs across seven other sectors. The area’s unemployment rate stood at 5.4% as of August, 110 basis points above the national figure, according to preliminary data from the Bureau of Labor Statistics. Sacramento’s economy could get a boost from the development of the mixed-use Cordova City Center. The $1 billion project is set to break ground next year, with completion slated for 2027.

Developers delivered 4,662 units through October, representing 3.2% of stock. That marked the strongest development pace for Sacramento in at least a decade. Meanwhile, investment accelerated: A total of $583 million in assets traded in 2025 through October, already some $120 million more than 2024’s entire volume

Read the full Yardi Matrix Sacramento Multifamily Market Report: December 2025

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Philadelphia’s average advertised asking rent inched up 0.1% on a trailing three-month basis through October, to $1,840, while the U.S. average ticked down 0.2%, to $1,743, according to the latest Yardi Matrix Philadelphia multifamily market report. Year-over-year, Philadelphia rents were up 2.2%. The uptick secured Philadelphia as the best-performing metro in the Mid-Atlantic region and placed it in sixth position among the top 30 major markets tracked by Yardi Matrix. Following two years of outstanding supply growth, Philadelphia’s average occupancy clocked in at 95.6% in September, above the 94.7% national rate, as reported in the U.S. multifamily report.

Employment growth picked up, at 1.4% year-over-year through August, 60 basis points above the U.S. figure. Over the 12-month period ending in August, Philadelphia added 61,600 net jobs. Education and health services led gains, with 38,800 positions added. The area’s unemployment rate stood at 5.1%, 80 basis points above the U.S. average, according to preliminary data from the Bureau of Labor Statistics. An upcoming 1.4 million square-foot warehouse in the Bellwether District could potentially add new jobs to the market, as the project has now received zoning approval.

Developers completed 6,065 units, or 1.6% of existing stock, across the metro in the first 10 months of this year, 100 basis points below the U.S. figure. Investors slowed down, as Philadelphia registered $760 million in multifamily transactions, down 17.4% year-over-year.

Read the full Yardi Matrix Philadelphia Multifamily Market Report: December 2025

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Orlando’s fundamentals remained resilient at the start of the fourth quarter, according to the latest Yardi Matrix Orlando multifamily market report. The metro’s average advertised asking rents ticked down 40 basis points on a trailing three-month basis through October, to $1,763, lagging the U.S. figure by 20 basis points. Orlando’s occupancy rate settled at 94.5% as of September, up 30 basis points year-over-year, despite 30,000 units being added in the past two years. The figure was below the 94.7% national average, as per the U.S. multifamily outlook.

Orlando’s employment growth was at 1.7% year-over-year through August, more than double the 0.8% U.S. figure. Over the 12-month period through August, the metro added 19,000 net jobs. The leisure and hospitality sector remained one of the metro’s top performers, with 5,800 positions gained. The Orange County Convention Center’s $560 million Grand Concourse expansion moved forward in September. Site work was approved and construction is expected to begin in 2026. The project will include a 100,000-square-foot ballroom and 440,000 square feet of meeting space.

More than 11,800 units, or 4.0% of existing inventory, came online year-to-date through October. Developers had close to 20,000 units under construction, with an additional 135,000 units in the planning and permitting stages. Investment regained momentum, with $1.9 billion in assets trading, already exceeding 2024’s total.

Read the full Yardi Matrix Orlando Multifamily Market Report: December 2025

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Las Vegas fundamentals softened at the start of the fourth quarter in 2025, with advertised asking rents down 0.4%, on a trailing three-month basis through October, to $1,456, while the U.S. average slid 0.2%, to $1,743, according to the latest Las Vegas multifamily market report. Year-over-year, rents fell 1.7%, marking the fourth largest decline among Yardi Matrix’s top 30 metros. Vegas’ occupancy rate for stabilized properties inched up to 93.8% in September, which highlighted the strong demand, as last year was the decade peak for deliveries.

Employment growth held at 0.3% year-over-year through August, lagging the 0.8% U.S. rate, as reported in the national multifamily market report. Unemployment stood at 5.6% in August, trailing both Nevada (5.3%) and the U.S. (4.3%), according to preliminary data from the Bureau of Labor Statistics. The metro lost 100 net jobs over the 12-month period ending in August. Gains were led by professional and business services, leisure and hospitality (each 2,700 jobs) and education and health services (900). Four sectors lost a combined 7,400 positions. Notable projects included the opening of Vegas Loop Westgate station, the completion of the Las Vegas Convention Center renovation and the Oakland A’s 33,000-seat ballpark, which broke ground in June.

Developers added 3,269 units through October and had 6,984 units underway, with construction starts declining abruptly. Transactions totaled $1.1 billion in 2025 through October, while the average price per unit rose 15.9% year-to-date, to $243,626.

Read the full Yardi Matrix Multifamily Market Report: December 2025

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Multifamily momentum stayed on course in Kansas City through fall, with the average advertised asking rent up 0.1%, on a trailing three-month basis through October, to $1,343, according to the latest Kansas City multifamily market report. The figure outperformed the U.S. rate, which slid 0.2% to $1,743. Year-over-year, the metro’s rents rose 2.4%, ranking fifth among Yardi Matrix’s top 30 markets. Occupancy in stabilized assets inched up 10 basis points, to 94.8% as of September, a sign of healthy absorption amid strong supply.

Employment growth remained tepid, at 0.1% through August, while the U.S. rate stood at 0.8%, as per the latest U.S. multifamily market report. Kansas City lost 1,000 net jobs over 12 months. Several sectors recorded steady gains through August, including education and health services (5,100 jobs), mining, logging and construction (3,700) and financial activities (2,600). Professional and business services (-9,500) and trade, transportation and utilities (-4,400) posted the steepest declines. Unemployment was 4.3% in August, equal to the U.S. rate and trailing both Kansas (3.8%) and Missouri (4.1%). Several projects were completed in 2025, including the KC Streetcar Main Street Extension project, Meta’s $1 billion Northland data center and Panasonic’s battery plant in De Soto.

Developers delivered 2,870 units in 2025 through October and had another 9,255 underway. Amid softening deliveries, new construction inched up. Investment reached $747 million through October, with the average price per unit down 12.6% year-to-date.

Read the full Yardi Matrix Kansas City Multifamily Market Report December 2025

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The Inland Empire’s fundamentals showed resilience going into the fourth quarter., according to the latest Inland Empire multifamily market report. Amid record supply, average advertised asking rents were unchanged on a trailing three-month basis through October, at $2,165, while the U.S. average slid 0.2% to $1,743. Year-over-year, rents improved 1.7% vs. 0.5% nationally, as per the U.S. multifamily market report. The area’s occupancy rate in stabilized assets inched up 20 basis points year-over-year, to 95.4% in September, even as deliveries shot up.

Employment growth stood at 0.7% through August, just below the 0.8% U.S. rate. Yet, unemployment rose to 6.1% in August, above the state (5.5%) and national (4.3%) rates. The Inland Empire added 14,600 net jobs over 12 months, led by education and health services (14,300), government (10,400) and leisure and hospitality (1,900), while the steepest losses were in construction (-6,600) and manufacturing (-2,800). Project advancements include the West Valley Connector, targeting a 2026 opening, SBCTA’s hydrogen-powered ZEMU, now in service on the Arrow corridor, and Brightline West, advancing field work at Rancho Cucamonga toward a projected 2028 or 2029 launch.

Developers delivered 6,030 units through October, 3.6% of inventory and nearly triple the metro’s 10-year pace. The construction pipeline had 7,235 units underway, with starts accelerating in 2025. Investment totaled $756 million through October, while the average price per unit climbed significantly.

Read the full Yardi Matrix Inland Empire Multifamily Market Report: December 2025

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Houston fundamentals were a mixed bag going into the fall of 2025, amid fast population growth and following a wave of deliveries in 2024, according to the latest Houston multifamily market report. The average advertised asking rent fell 0.2%, on a trailing three-month basis through October, to $1,361. Year-over-year, the average Houston rent slid 0.5%, as the U.S. figure rose 0.5%, to $1,743, as reported in the national multifamily report. Meanwhile, occupancy in stabilized Houston assets stood at 92.6% in September, down just 10 basis points over 12 months.

Employment marked a 1.1% gain through August, leading the 0.8% U.S. rate. Houston added 27,500 net jobs over 12 months. Three sectors accounted for roughly 60% of new jobs, led by education and health services (13,200 jobs), leisure and hospitality (7,200) and trade, transportation and utilities (6,800). Meanwhile, information and professional and business services lost 13,800 jobs combined. The metro’s unemployment rate stood at 5.0% in August, trailing the state (4.1%) and the U.S. (4.3%). Notable developments across the market include Port Houston’s Project 11 channel expansion and the opening of the $685 million Houston Methodist Cypress Hospital, which added roughly 700 jobs.

Developers delivered 11,713 units and had another 23,166 units underway as of October, while starts fell closer to historical averages. Investment remained modest for Houston standards, reaching $2.0 billion in 2025 through October. The price per unit clocked in at $134,160, virtually flat compared to 2024.

Read the full Yardi Matrix Houston Multifamily Market Report: December 2025

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