Rent Growth

With national rent growth at 1.2 percent in the second quarter, some local markets are performing three to four times better than the national average. Here’s where rent growth has surged ahead.

Rent growth and vacancy continue to hold steady, according to the latest CoStar data for the first quarter. Asking rents remained at 1.1 percent nationally, while vacancy averaged 8.1 percent.

Which multifamily markets are expected to post the strongest rent growth in the first quarter of 2025? Major markets in the Midwest and Northeast lead the pack, with a few surprises from other parts of the country.

2024 saw a year of minimal rent growth and steady vacancy, despite a dramatic delivery of new supply and rise in demand. Here’s how different markets stacked up.

The shrinking gap between multifamily supply and demand in the third quarter comes after nearly two years of decelerating rent growth and high vacancy.

After an upward climb that began in 2022, the multifamily vacancy rate stayed stable in the second quarter of 2024. This is one of a few positive signs for the industry revealed in the latest data from CoStar.

These dozen major markets are outperforming the nation, with asking rents rising by twice or three times the national average in the second quarter of 2024. And bucking regional trends, it’s not just Midwest and Northeast markets that are topping the list this quarter.

The first quarter of 2024 saw renter demand increase, though not by enough to meet historically high supply, especially in the high-end quality class.

These 10 Sun Belt markets are struggling with the greatest year-over-year drops in asking rent in the country. This decline in the first quarter of 2024 is thanks to a mismatch between supply and demand.

Rent growth continues to decelerate on both a monthly and annual basis, with only one region of the country seeing a slight uptick compared to January.

The multifamily industry saw a slight uptick in rent growth in January 2024. The Midwest and Northeast have driven the greatest increases in asking rent, while the South continues to lag behind with declining rents.