Top U.S. Multifamily Rent Growth Markets — Q2 2025
At the midyear mark of 2025, the U.S. multifamily market stood on the cusp of a new cycle. Rental demand remained strong, fueled by favorable demographic trends and the ongoing housing shortage, despite persistent macroeconomic uncertainty. Rent growth aligned with pre-pandemic patterns, and occupancy levels stayed stable, as the pace of new construction moderated. Additionally, investors continued to capitalize on emerging opportunities across the sector.
As was the case last year, the top rent growth markets through the first half of 2025 represented several regions, all with varying strengths and characteristics.
The Northern New Jersey market finished as the multifamily rent growth leader for the second quarter in a row, with rents reaching $2,715/unit, up 6.5% year-over-year. The region hosts a broad mix of high-paying industries (including financial services, life sciences, and technology) that attract a well-educated talent pool. Its ports play a vital role in supporting the local economy through trade and logistics. However, its outlook remains uncertain amid tariff uncertainties. Northern New Jersey also ranked as the third-leading rent growth market during 2024.
San Jose finished in the second position, with a growth rate of 4.6% and an average rent of $3,068/unit. The market has been driven by strong fundamentals that support its long-term resilience and growth, including a highly educated workforce, high household incomes, and a historical tradition of innovation and entrepreneurship.
Several midwestern markets placed near the top once again this quarter, including Chicago (up 4.4%), Minneapolis (up 3.9%), and Detroit (up 3.4%), as well as prime gateway markets, such as Long Island (up 3.9%), Miami (up 3.5%), and District of Columbia (up 3.1%).
Here’s a look at all the top U.S. multifamily rent growth markets, with data provided by Moody’s Analytics CRE.
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