June 18, 2025 | According to a new report from Yardi Matrix, in May, the average advertised rent for multifamily properties increased by 1.0% YoY to $1,761.1 Rent growth remained strongest in gateway and secondary markets in the Northeast and Midwest, such as New York City (5.7%), Kansas City (4.0%), Philadelphia (3.4%), Columbus (3.3%), Chicago (3.1%), and Detroit (3.1%). In contrast to these markets, several oversupplied Southern markets recorded negative rent growth, including Austin (-5.2%), Denver (-3.5%), Phoenix (-3.4%), Orlando (-1.8%), and Dallas (-1.5%). The multifamily segment also recorded YoY occupancy growth in May.

According to RealPage, Class A, B, and C properties all recorded YoY gains with Class A units experiencing the largest increase at 170-bps, followed by Class B at 150-bps, and Class C at 140-bps.2 Overall, for May, Class B units recorded the highest occupancy rate at 95.8%, followed closely by Class A at 95.7% – this is the highest occupancy rate for Class A units since June 2022 — and Class C at 95.6%. May’s occupancy rates for each class are greater than their 2015 to 2019, pre-pandemic averages and their order also represents a shift from that period when Class C units recorded the highest occupancy rate at 95.4%, followed by Class B at 95.3%, and Class A at 94.7%.

Click here to read the full report.

Research contact:
Debo Ayeni

Research sponsored by ABR Capital Partners