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Rent Growth Set to Accelerate in Supply-Constrained Markets

A slowdown in new construction is expected to affect renters differently across the U.S.

By Mario Marroquin | December 18, 2024 at 06:48 AM

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.

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