Welcome to March’s edition of the MONTICELLOAM, LLC Multifamily Financing Update! In this edition, we dive into the leading markets experiencing rent growth and rent cuts, examine the national rent growth in February, and share the latest news and insights in multifamily.
Markets with Leading Rent Growth and Rent Cuts as of February
In RealPage’s February multifamily report, Chicago led all markets with 4.2% rent growth year-over-year. The Midwest continues to be a region experiencing more favorable conditions as they are well represented in the top ten markets.
On the other end, Austin was the market that saw the largest rent cut at 7.2%. Austin had a 0.15% cut in February, its smallest cut in nine months.
Rent cuts were largely concentrated in markets with an abundance of supply with about one-third of the United States’ markets experiencing cuts.
Multifamily News and Insights
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Construction Rate Isn’t on Pace to Fix the Housing Shortage this Decade | Realtor |
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Rents Expected to Trend Up | WSJ |
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8 Out of 10 Multifamily Investors Look to Acquire this Year | BisNow |
US Apartment Rents Turning a Corner?
The national median rent reached $1,375 February, increasing $4 from January, and marking the end of six straight months of decline. The March 2025 Apartment List national rent index found that YoY rent growth is returning, with 75% of the top 100 US cities experiencing rent growth last month.
Expectations are that the end of the rent decline cycle is nearing an end as the market shows signs of stabilization.
Read the March 2025 Apartment List analysis here.