Apartments.com Releases Multifamily Rent Growth Report for Second Quarter of 2025

ARLINGTON, Va.--(BUSINESS WIRE)--Jul 7, 2025--

The national year-over-year asking rent growth for apartments was 0.9% in the second quarter of 2025, slightly slower than the 1.2% recorded in the first quarter. From mid-2023, year-over-year rent growth hovered between 1.0% and 1.2% after its rapid deceleration in 2021 and 2022. This was the first easing of rent growth since the first quarter of 2024.

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The national rent per unit ended the quarter at $1,773, compared to a revised $1,763 recorded at the end of the first quarter of 2025 and $1,757 at the end of the second quarter of 2024. Quarter-over-quarter rents rose by 0.6%, a slowdown from the prior quarter’s gain of 1.1%. The vacancy rate held steady at 8.2% for its third consecutive quarter.

The second quarter recorded 151,440 units of absorption, a 21% increase over the previous quarter but 9% below absorption in the second quarter of 2024. Supply additions in the quarter numbered 175,655, a 37% increase over the previous quarter, but 11% below the supply additions in the second quarter of 2024. While supply additions exceeded absorption in the second quarter, following a trend that has persisted since the fourth quarter of 2021, construction starts have been on a long downward trend for two years, suggesting future deliveries will slow.

San Francisco ended the second quarter with the strongest annual asking rent growth of the top 50 markets nationwide, at 5.1%. Chicago followed at 3.8%, with San Jose at 3.0%, and Cincinnati and Norfolk at 2.8% were not far behind. Many of the best-performing markets are in the Midwest and Northeast, where modest supply additions were better aligned with demand conditions.

At the opposite end of the scale, rents fell by 4.3% over the past 12 months in Austin, followed by Denver at -3.3% and Phoenix at -2.6%. Fifteen markets saw rents fall compared to the second quarter of 2024, with all but one of those markets in the Sun Belt, where oversupply conditions have yet to stabilize fully.

Absorption was again led by 4&5-Star units, with roughly 115,000 units in the quarter, or about 75% of all units absorbed. With most new supply aimed at the luxury market, annual asking rent growth remained the weakest in that segment and finished June at 0.5%, with a vacancy rate of 11.5%. This contrasts with mid-priced assets that benefited from rising demand for 3-Star properties, where the vacancy is 7.5% at the end of the second quarter, producing annual rent growth of 1.1%.

The multifamily market is projected to add 485,000 new units in 2025, 30% fewer than were delivered in 2024. As the post-pandemic supply wave recedes, balance will likely return to the market. However, market conditions could vary widely among markets and quality segments.

ABOUT COSTAR GROUP, INC.

CoStar Group (NASDAQ: CSGP) is a global leader in commercial real estate information, analytics, online marketplaces and 3D digital twin technology. Founded in 1986, CoStar Group is dedicated to digitizing the world’s real estate, empowering all people to discover properties, insights, and connections that improve their businesses and lives.

CoStar Group’s major brands include CoStar, a leading global provider of commercial real estate data, analytics, and news; LoopNet, the most trafficked commercial real estate marketplace; Apartments.com, the leading platform for apartment rentals; and Homes.com, the fastest-growing residential real estate marketplace. CoStar Group’s industry-leading brands also include Matterport, a leading spatial data company whose platform turns buildings into data to make every space more valuable and accessible, STR, a global leader in hospitality data and benchmarking, Ten-X, an online platform for commercial real estate auctions and negotiated bids and OnTheMarket, a leading residential property portal in the United Kingdom.

CoStar Group’s websites attracted over 130 million average monthly unique visitors in the first quarter of 2025, serving clients around the world. Headquartered in Arlington, Virginia, CoStar Group is committed to transforming the real estate industry through innovative technology and comprehensive market intelligence. From time to time, we plan to utilize our corporate website as a channel of distribution for material company information. For more information, visit CoStarGroup.com.

This news release includes "forward-looking statements," including, without limitation, statements regarding CoStar's expectations or beliefs regarding the future. These statements are based upon current beliefs and are subject to many risks and uncertainties that could cause results to differ materially from these statements. The following factors, among others, could cause or contribute to such differences: the risk that new unit deliveries do not occur when expected, or at all; and the risk that multifamily vacancy rates are not as expected. More information about potential factors that could cause results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, those stated in CoStar’s filings from time to time with the Securities and Exchange Commission, including in CoStar’s Annual Report on Form 10-K for the year ended December 31, 2024 and Quarterly Report Form 10-Q for the quarter ended March 31, 2025, which are filed with the SEC, including in the “Risk Factors” section of those filings, as well as CoStar’s other filings with the SEC available at the SEC’s website ( www.sec.gov ). All forward-looking statements are based on information available to CoStar on the date hereof. CoStar assumes no obligation to update or revise any forward-looking statements, whether due to new information, future events or otherwise.

Quarterly Apartment Rent Growth in Top 50 Markets

Annual Apartment Rent Growth in Top 50 Markets

U.S. Apartment Rent Growth

CRANS-MONTANA, Switzerland (AP) — Sixteen-year-old Arthur Brodard went to the Le Constellation bar with friends to celebrate the New Year. Nearly 48 hours after a devastating fire, his mother still held out hope he might be one of the six injured people who remained unidentified after one of Switzerland’s worst tragedies.

Those half-dozen people gave a glimmer of hope for families whose loved ones were missing in the aftermath of the fire at the Alpine ski resort of Crans-Montana that killed 40 people and injured 119 others, 113 of whom have been formally identified.

“I’m looking everywhere. The body of my son is somewhere,” Laetitia Brodard, from Lausanne, Switzerland, told reporters. “I want to know, where is my child, and be by his side. Wherever that may be, be it in the intensive care unit or the morgue.”

The severity of the burns has made it difficult to identify both the injured and deceased, requiring families to supply authorities with DNA samples. In some cases, wallets and any identification documents inside turned to ash in the flames. An Instagram account has filled up with photos of people who were unaccounted for, and friends and relatives begged for tips about their whereabouts.

Officials in the Valais regional government acknowledged the prolonged heartache.

“You will understand that the priority today is truly placed on identification, in order to allow the families to begin their mourning,” Beatrice Pilloud, the Valais region's attorney general, told reporters Friday during a news conference.

Mathias Reynard, head of the regional government, added: “We are aware of the particularly difficult hours, of the unbearable side of every minute that passes without answers."

Investigators said Friday that they believe sparkling candles atop Champagne bottles ignited the fatal fire when they came too close to the ceiling of the bar crowded with New Year's Eve revelers, two hours after midnight Thursday.

“We were bringing people out, people were collapsing. We were doing everything we could to save them, we helped as many as we could, we saw people screaming, running,” Marc-Antoine Chavanon, 14, told The Associated Press in Crans-Montana on Friday, recounting how he rushed to the bar to help the injured. “There was one of our friends: She was struggling to get out, she was all burned. You can’t imagine the pain I saw.”

Many of the injured were in their teens to mid-20s, police said. Authorities planned to look into whether sound-dampening material on the ceiling conformed with regulations and whether the candles were permitted for use in the bar.

Officials said they would also look at other safety measures on the premises, including fire extinguishers and escape routes. The region's top prosecutor warned of possible prosecutions if any criminal liability is found.

The injured included 71 Swiss nationals, 14 French and 11 Italians, along with citizens of Serbia, Bosnia-Herzegovina, Luxembourg, Belgium, Portugal and Poland, according to Frédéric Gisler, police commander of the Valais region. The nationalities of 14 people were still unclear.

Emanuele Galeppini, a promising teenage Italian golfer who competed internationally, was officially listed as one of Italy’s missing nationals. His uncle, Sebastiano Galeppini, told Italian news agency ANSA that their family is awaiting the DNA checks, though the Italian Golf Federation on its website announced that he had died.

Dazio reported from Berlin. Associated Press journalists Geir Moulson in Berlin, Graham Dunbar in Geneva, and Nicole Winfield and Giada Zampano in Rome contributed to this report.

People bring flowers and letters, reading "Rest in Peace", near the sealed off Le Constellation bar, where a devastating fire left dead and injured during the New Year's celebrations in Crans-Montana, Swiss Alps, Switzerland, Friday, Jan. 2, 2026. (AP Photo/ Antonio Calanni)

People mourn behind flowers near the sealed off Le Constellation bar, where a devastating fire left dead and injured during the New Year's celebrations in Crans-Montana, Swiss Alps, Switzerland, Friday, Jan. 2, 2026. (AP Photo/Baz Ratner)

The sealed off Le Constellation bar, where a devastating fire left dead and injured during the New Year's celebrations is seen in Crans-Montana, Swiss Alps, Switzerland, Friday morning, Jan. 2, 2026. (AP Photo/ Antonio Calanni)

People bring flowers and candles near the sealed off Le Constellation bar, where a devastating fire left dead and injured during the New Year's celebrations in Crans-Montana, Swiss Alps, Switzerland, Friday, Jan. 2, 2026. (AP Photo/ Antonio Calanni)

People mourn behind flowers and letters near the sealed off Le Constellation bar, where a devastating fire left dead and injured during the New Year's celebrations in Crans-Montana, Swiss Alps, Switzerland, Friday, Jan. 2, 2026. (AP Photo/ Antonio Calanni)