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These Regions Will See the Highest Multifamily Rent Growth in 2025

Expect the Southwest and West to fare better but there is more to it.

It’s been a long two years of record multifamily construction. The impact on supply and, as a result, vacancy and rent growth rates are well-discussed in commercial real estate circles.

But as 2025 approaches, there is also the expected slowdown and end of the expansion — over the next 12 to 18 months, according to Moody’s. That should mean a chance for vacancies to lower and rental rates to rise, the latter rising to 3% per annum in 2025 and 2026.

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Erik Sherman

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