Multifamily Gains Ground in March Despite Macro Uncertainty

Advertised asking rents rose $5 nationally in March to $1,755, capping a 0.4% gain for Q1.

Jordan B.
April 04, 2025

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Good morning. March brought modest rent gains across multifamily and SFR, with stable occupancy and solid performance in key gateway and Midwest markets. But economic uncertainty and policy shifts are adding new layers to the 2025 outlook.

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Market Snapshot

S&P 500

GSPC

5,396.52

Pct Chg:
-4.84%

FTSE NAREIT

FNER

758.85

Pct Chg:
-3.11%

10Y Treasury

TNX

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Pct Chg:
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SOFR

30-DAY AVERAGE

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Pct Chg:
-0.00

*Data as of 04/03/2024 market close.

SPRING UPTICK

Multifamily Gains Ground in March Despite Macro Uncertainty

Despite mounting policy-driven uncertainty, the multifamily sector held firm in March with a modest rent bump and signs of investor confidence.

Rents inch up: According to Yardi Matrix’s March 2025 Multifamily National Report, U.S. advertised multifamily rents rose $5 in March to $1,755, pushing Q1 growth to 0.4%. Occupancy held at 94.5% for the third straight month.

Top Performers: New York City led with 5.5% annual rent growth, followed by Chicago and Kansas City (3.7% each). Midwestern cities like Columbus and Detroit also posted strong figures.
Lagging Markets: High-supply metros continued to see year-over-year rent declines, particularly Austin (-5.4%), Denver (-3.6%), and Phoenix (-3.0%).

Monthly movers: Chicago, Charlotte, and Seattle posted the strongest month-over-month rent gains, while Miami, Phoenix, and Austin each declined by 0.5%

Strength in the center: Single-family rents held steady at $2,169, with the Midwest leading growth. Kansas City (+5.4%) and Detroit (+4.9%) were standouts. Occupancy remained stable at 94.7%, supported by ongoing affordability challenges.

Mixed signals: The Trump administration is pushing initiatives to unlock federal land for housing, fast-track development reviews, and potentially expand Opportunity Zones. But budget cuts to key affordable housing programs—including a $60M hit to nonprofits and a freeze on a $1B green housing loan fund—have created unease among advocates.

➥ THE TAKEAWAY

The bigger picture: Multifamily capital markets remain fluid—even as 2025 brings a flood of maturing loans, many of which were already extended once. With lenders now showing less flexibility, the door is open for investors to step in with takeout financing or scoop up discounted assets.

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✍️ Editor’s Picks

Fundraising framework: Unlock the secrets to successful real estate syndication using targeted marketing, email list building, and AI-driven techniques. (sponsored)
Lumber relief: Canadian lumber is officially exempt from President Trump’s sweeping new global tariffs, delivering a major victory for the NAHB.
Insurance squeeze: Lenders are increasingly slapping commercial landlords with costly force-placed insurance as coverage lapses, pushing many toward distress.
Transit catalyst: With a new commuter rail station and the removal of a major highway, Fall River is unlocking a 19-acre waterfront site for a 2M SF mixed-use development.
Mortgage disruption: Private credit firms are moving into the $50T residential mortgage market, capitalizing on rising demand for non-traditional home loans.
Recession risk: Economists expect US GDP to slow sharply to just 0.3% in Q125 as new tariffs weigh on consumer spending, manufacturing, and inflation.

🏘️ MULTIFAMILY

Bayou buy: Florida-based Oakwood Capital has acquired the 378-unit Houma Highlands apartment complex in Louisiana for $98,214/unit.
Rent reversal: Miami rents fell nearly 8% YoY in March, part of a broader 2.2% regional decline across South Florida, as a supply surge and slowing migration ease pressure in one of the nation’s priciest apartment markets.
Tax fallout: LA’s “mansion tax” has triggered a 50% plunge in $5M+ property sales, slashing multifamily permits and yielding far less revenue than projected, well short of its $1B promise.
Senior refi: Noah Properties secured a $42.5M refinance from Walker & Dunlop for its newly completed 120-unit senior apartment complex in suburban River Grove.

🏭 Industrial

Strategic scale: Prologis is leaning heavily on its private capital arm to fund global expansion and scale its logistics footprint beyond what public capital alone could support.
Desert build: ATLAS Capital Partners and Hawkins Development are launching a four-building industrial campus in Mesa, AZ — their largest land buy yet — with construction kicking off in Q3.
Mile-high momentum: Denver ranks as the 14th most active industrial market in the US as major projects like Amazon’s Loveland facility help offset a national slowdown in development.

🏬 RETAIL

Retail rebel: While most developers steer clear of new shopping centers, Joshua Simon is betting on ground-up retail despite rising costs and industry headwinds.
Food forward: Convenience store chains are doubling down on food service, expanding store footprints, and targeting high-traffic locations to tap into rising demand for ready-made meals, healthier options, and longer EV charging stops.
Fresh footprint: Dallas-based Malouf Interests is bringing Lucas, TX, its first true grocery store with a planned 130 KSF retail center on 42 newly acquired acres.
Grocery gold: Despite the FTC’s block of the Kroger-Albertsons merger, grocery M&A activity surged in 2024, led by Aldi’s aggressive expansion and investor enthusiasm for grocery-anchored retail.

🏢 OFFICE

Crypto in Wynwood: Gemini, the crypto firm led by the Winklevoss twins, is opening its first South Florida office, reinforcing Wynwood’s rise as a magnet for tech and finance tenants.
Disney's exit: Disney plans to vacate Century City's Fox Studio Lot by year-end, ending a $50M/yr lease and consolidating operations in Burbank.
Luxury lease play: Kingsbarn Realty Capital has acquired the Skims headquarters in Hollywood for $105M, one of LA’s priciest office deals in years, as a signal of renewed investor confidence in premium office assets.
Ballpark buy: The Atlanta Braves’ real estate arm has acquired the 763 KSF Pennant Park office complex near Truist Park for $93M, expanding its holdings by 30% and adding potential development opportunities next to The Battery.

📈 CHART OF THE DAY

Build-out costs for office space are highest in NYC, followed by other major U.S. cities like San Francisco, Boston, and Chicago. Rising material costs, inflation, and labor shortages have driven up prices, with North America's average fit-out cost far exceeding the global norm.