The multifamily market in 2025 is set to experience significant shifts in supply dynamics as economic constraints, including rising interest rates and inflation, put pressure on high-supply metros. According to RealPage’s latest forecast, tenant retention and concessions will be key strategies in these markets flooded with new units, while areas with lower supply will likely see accelerated rent growth driven by increased competition for limited inventory.

RealPage predicts that landlords in high-supply metros will pivot toward retention tactics to manage rising turnover rates. As supply continues to outpace demand in markets like the Sun Belt, concessions will become an essential tool to attract and retain tenants. In contrast, metros with constrained supply will see stronger rent growth as competition for fewer available units drives demand.

“The multifamily housing industry has found its footing, with renter demand as strong as it’s ever been, and new housing supply has been robust enough to meet that demand, as seen by the nation’s stabilizing, healthy occupancy rate,” said Carl Whitaker, chief economist at RealPage.