Multifamily Rent Growth Update: December 2025

Subscribe

This analysis explores multifamily rent growth trends across the US using the Zillow Observed Rent Index (ZORI). All figures are seasonally adjusted and updated through December 2025.

National Rent Growth Trends

Multifamily rent growth remained subdued in December 2025, with national rent gains continuing to register positive in nominal terms but negative after adjusting for inflation. The latest Zillow Observed Rent Index (ZORI) data point to a rent environment that is materially cooler than the post-pandemic peak and running below long-run historical norms in real terms, even as nominal rents continue to edge modestly higher.

On a year-over-year basis, national multifamily rents rose 1.6% in December. While this reflects continued nominal growth, inflation-adjusted rents declined by approximately 1.1%, extending the recent period of real rent contraction. Elevated inflation continues to erode effective rent growth despite modest nominal gains. Notably, inflation-adjusted annual multifamily rent growth has remained negative for eight consecutive months, dating back to May 2025.

Rent growth breadth remained constrained. The share of US metros experiencing monthly rent increases declined to approximately 61% in December, remaining well below the peaks observed during the 2021–2022 rent surge. While a majority of markets are still posting month-over-month gains, short-term momentum remains uneven.

At the same time, the share of markets experiencing year-over-year rent increases remained substantially higher, at roughly 83%. This divergence between monthly and annual rent growth breadth highlights the disconnect between longer-term rent levels and near-term momentum: many markets remain above year-ago rent levels, but forward pricing pressure has softened meaningfully.

Metro-Level Performance

On an annual basis, rent growth was strongest in a mix of coastal and Midwest metros. Virginia Beach and Urban Honolulu led the country in year-over-year rent growth in December, followed closely by Rochester, San Francisco, and Chicago. In contrast, several Sun Belt and Mountain West markets continued to post pronounced annual rent declines, reflecting persistent supply pressures and softer demand conditions.

Top 5 Markets for Annual Multifamily Rent Growth in December 2025

Virginia Beach, VA: +5.87%

Urban Honolulu, HI: +5.76%

Rochester, NY: +5.34%

San Francisco, CA: +5.31%

Chicago, IL: +5.24%

Bottom 5 Markets for Annual Multifamily Rent Growth in December 2025

Cape Coral, FL: −6.40%

Austin, TX: −4.18%

Colorado Springs, CO: −3.99%

North Port, FL: −3.71%

Denver, CO: −2.22%

Month-over-month rent growth across the 100 largest US metro areas was mixed in December. Several smaller and mid-sized markets posted outsized monthly increases, while a number of Sun Belt metros recorded sharper pullbacks.

Top 5 Markets for Monthly Multifamily Rent Growth in December 2025

Jackson, MS: +1.16%

Chattanooga, TN: +0.99%

Stockton, CA: +0.80%

Poughkeepsie, NY: +0.73%

Virginia Beach, VA: +0.66%

Bottom 5 Markets for Monthly Multifamily Rent Growth in December 2025

Tampa, FL: −0.89%

Syracuse, NY: −0.73%

Cape Coral, FL: −0.62%

Greenville, SC: −0.50%

Albuquerque, NM: −0.50%

The Bottom Line

The December data reinforce the broader narrative of subdued multifamily rent growth. Nominal rents continue to rise modestly, but real rents remain under pressure, and short-term growth momentum remains uneven across markets. While conditions are far more stable than during the volatility of 2020–2022, the sector has yet to reestablish sustained real rent growth as it heads into 2026.