U.S. apartment rent growth for 2027 is now projected to be “more tepid” compared to the outlook a few months ago, Yardi Matrix said Wednesday. The forecast now calls for asking rents to grow between 2% and 3% the year after next.
“This is driven by an increased expectation of new-supply deliveries in 2027, back to pre-COVID levels, as well as a more modest trajectory of household formation as the labor market moderates and population growth returns to its pre-COVID decelerating trajectory,” according to the Multifamily Rent Forecast Update from Yardi Matrix. “Continued decent GDP growth and high federal government financing needs do not warrant reduced long-term interest rates, which we expect will keep mortgage rates high and multifamily turnover at its current lower level.”
The 2% to 3% growth expected for 2027 follows year-over-year 2026 growth of 1.2% nationally, followed by a stronger 3.4% to 3.8% for 2028.
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