Top U.S. Multifamily Rent Growth Markets — February 2026

The U.S. multifamily sector ended 2025 positioned to thrive, as some standout markets outshined otherwise modest national rent growth. Reduced supply pressures helped keep vacancies stable, while clearer interest rate expectations and reliable returns kept investors confident in the sector’s durability.

Over the past 12 months, the leading rent growth markets spanned multiple regions, each exhibiting distinct strengths and characteristics.

San Jose finished as the top multifamily rent growth market in the nation in 2025, after finishing 2024 in fifth position. Average effective rents finished the year at $3,073/unit, up 2.8% from one year ago. San Jose’s long‑term resilience and growth are underpinned by solid fundamentals, including a highly educated workforce, elevated household incomes, and a longstanding culture of innovation and entrepreneurship. The San Francisco market also finished near the top of the rankings, with a growth rate of 1.8%, and an average rent of $3,221/unit (the second highest in the nation behind only the New York Metro market).

The Minneapolis market finished the year in the second spot, with a 2.0% growth rate and an average rent of $1,497/unit. The Twin Cities region boasts major research institutions and corporate headquarters fostering innovation, alongside a highly educated workforce and positive population trends.

Also in the Midwest, Milwaukee finished at number three, with a 1.9% growth rate and average effective rent of $1,370/unit. The market’s strengths include a highly productive business atmosphere where jobs can be created, above‑average per‑capita income, and a well‑educated workforce. Additional Midwestern standouts during the year were Cincinnati (up 1.7%), Cleveland, Kansas City, and St. Louis (each up 1.4%).

Here’s a look at all the top U.S. multifamily rent growth markets for 2025, with data provided by Moody’s Analytics CRE.

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