As spring comes within whispering distance, the multifamily rental season heats up. According to Zillow’s February 2025 Rental Market Report, pricing power has returned to the property category with the typical asking rent across the U.S. having risen to $1,980, a 0.4% increase from January and 3.5% year-over-year. It is 0.5% below the pre-pandemic monthly average for this time of year.
Even with increased supply in some popular parts of the country, demand from new renters is keeping upward rent pressure in place. Multifamily unit rent growth has also passed that of single-family rentals for the first time since June 2024.
Recently, single-family rentals (SFRs) saw faster rental growth than multifamily because of limited supply and high demand. That has flipped back to more historical patterns between increased construction of single-family homes for rentals and a slowdown in the new apartment construction that had been the case over the last couple of years. However, SFRs have risen in price, with an average ask of $2,189, a 0.4% increase from January to February.
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