Top U.S. Multifamily Rent Growth Markets — Q3 2025
In the third quarter of 2025, the U.S. multifamily market showed continued signs of stabilization. Declining interest rates drove an uptick in investment activity, alongside steadying vacancy and balancing supply. Although macroeconomic uncertainties remain, key indicators show that the multifamily market will continue to attract investors across both short-term and long-term investment horizons.
As has been the case throughout this cycle, the top rent growth markets over the past 12 months represented several regions, all with varying strengths and characteristics.
For the third consecutive quarter, the Northern New Jersey market finished as the multifamily rent growth leader, with a $2,693/unit average effective rent, up 3.7% year-over-year. The region contains 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. Northern New Jersey also ranked as the third-leading rent growth market during 2024.
Nearby, the Long Island market finished in the second spot, reaching $2,912/unit with a 3.3% growth rate. Given its proximity to New York City, Nassau and Suffolk counties’ multifamily markets benefit from a highly skilled workforce and high per capita income, anchored by the healthcare industry.
San Jose finished in the third position, falling from the number two slot in the previous quarter, with a growth rate of 3.1% and an average rent of $3,081/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 once again placed near the top this quarter, including Chicago (up 2.8%), Detroit (up 2.7%), and Minneapolis (up 2.6%).
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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