Top U.S. Multifamily Rent Growth Markets — Q1 2025
The U.S. multifamily market continued to settle into a more normalized cycle during the first quarter of 2025, as well-positioned investors began to take advantage of new opportunities in an uncertain economic environment. During the current cycle, renters have driven the majority of household growth, with rental households increasing at twice the pace of owner-occupied homes. This trend reflects a growing shift toward lifestyle renting, as many renters anticipate staying in the rental market for the foreseeable future.
As was the case during 2024, the top rent growth markets to start 2025 represented several regions, all with varying strengths and characteristics.
Northern New Jersey finished as the top rent growth multifamily market during the first quarter, with rents finishing at $2,686/unit, up 7.7% year-over-year. The area is home to a diverse set of high-paying industries, such as financial services, life sciences, and technology, which attract a highly-educated workforce. The market’s ports support the local economy through logistics and trade, although trade war uncertainties cloud the outlook. Northern New Jersey was the number three rent growth market during 2024.
The Miami multifamily market finished with the second-highest annual rent growth in the nation, following two consecutive quarters at the top of the list. Effective rents in the market were up 7.2% year-over-year, finishing at $2,387/unit. Historically, the Miami housing market has been driven by strong international and domestic migration, although mass deportations and declines in international immigration pose risks to housing demand.
Long Island finished as the number three market during the first quarter, up 5.7% year-over-year. It was a big jump for the market, which did not make the top markets list in 2024. The Long Island economy is expected to remain strong for years to come, driven by a well-educated workforce and affluent residents, while benefiting from close proximity to New York City.
Here’s a look at all of the top U.S. multifamily rent growth markets, with data provided by Moody’s Analytics CRE.
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