Top Real Estate Markets for Rent Growth

The U.S. rental market has cooled off since the red-hot heights of the Pandemic Housing Boom when national multifamily rents surged +16.4% and single-family rents jumped +13% year-over-year in the early months of 2022.

However, the slowdown has not been uniform. Last year, many U.S. rental markets saw multifamily rent growth continue to lag behind single-family rental growth, with some regions even seeing outright declines. Early data for 2025 suggests this trend is continuing. 

According to LendingOne’s analysis, nationally aggregated multifamily rents rose +2.7% year-over-year in January 2025, while single-family rents climbed +4.4%. 

This growth gap indicates that demand for single-family rentals remains elevated, while multifamily rent growth faces more downward pressure—with the strength of this trend varying greatly by market. 

To see which multifamily and single-family rental markets have seen the most rent growth in the last 12 months, LendingOne analyzed data from the Zillow Observed Rent Index (ZORI). Using the ZORI time series data, LendingOne analysts calculated the year-over-year shifts in rent for single-family and multifamily properties by metro area.

Top-line findings from LendingOne’s latest rent analysis:

1. Single-family rental growth, while subdued compared to the Pandemic Housing Boom days, continues to outperform multifamily rental growth across most U.S. markets. 
2. Small and mid-sized markets in the Northeast and Midwest are seeing the strongest rental growth—for both multifamily and single-family properties.
3. The weakest rental markets are concentrated in the Southeast, with markets like Austin, Cape Coral, and San Antonio experiencing outright multifamily rent declines since January 2024.

National Rent Change: 12-Month Shift

Change in Metro-Level SFR Rents Between January 2024 and January 2025

Top Metros for Single Family Rent Growth

Among the 200 largest metros with sufficient data, these are the 20 metros with the highest single-family rent growth from January 2024 through January 2025:

1. Atlantic City, NJ: +14.4%
2. Manchester, NH: +10.9%
3. Reading, PA: +10.4%
4. Huntington, WV: +9.7%
5. Salinas, CA: +9.6%
6. Santa Cruz, CA: +9.6%
7. Flint, MI: +9.4%
8. Green Bay, WI: +9.3%
9. Kalamazoo, MI: +9.1%
10. Evansville, IN: +9.0%
11. Norwich, CT: +8.3%
12. Topeka, KS: +8.1%
13. Fort Smith, AR: +7.9%
14. Salisbury, MD: +7.7%
15. St. Louis, MO: +7.7%
16. Cleveland, OH: +7.6%
17. Charleston, WV: +7.6%
18. Santa Maria, CA: +7.4%
19. Youngstown, OH: +7.4%
20. Merced, CA: +7.2%

Atlantic City, NJ stands out as the strongest single-family rental market, with a remarkable year-over-year rent growth of +14.4%. Many of the city’s Northeastern neighbors, including Manchester, NH (+10.9%) and Reading, PA (+10.4%), join it at the top of the ranks. This region is strong due to tight housing inventory, limited new construction, expensive neighboring cities, and home price appreciation pushing up rental demand.

The Midwest is also performing well, with cities like Flint, MI (+9.4%) and Kalamazoo, MI (+9.1%) seeing strong single-family rent growth. The region's relative affordability and increasing demand for rental properties as more people seek budget-friendly housing options amid rising homeownership costs puts upward pressure on rent growth. 

Notably, select areas in California are seeing strong single-family rent growth as metros like Salinas (+9.6%) and Santa Cruz (+9.6%), due to limited housing supply and high demand.

Change in Metro-Level Multifamily Rents Between January 2024 and January 2025

Top Metros for Multifamily Rent Growth

Among the 200 largest metros with sufficient data, these are the 20 metros with the highest multifamily rent growth from January 2024 through January 2025:

1. Reading, PA: +12.8%
2. Atlantic City, NJ: +12.0%
3. Lynchburg, VA: +9.5%
4. Erie, PA: +9.1%
5. Duluth, MN: +9.0%
6. Hartford, CT: +8.8%
7. Shreveport, LA: +8.6%
8. South Bend, IN: +8.6%
9. Worcester, MA: +8.5%
10. Tuscaloosa, AL: +8.3%
11. Salinas, CA: +8.2%
12. Bremerton, WA: +8.1%
13. Bridgeport, CT: +8.0%
14. Fayetteville, AR: +8.0%
15. Peoria, IL: +7.9%
16. Montgomery, AL: +7.8%
17. Norwich, CT: +7.8%
18. Charleston, WV: +7.8%
19. Jackson, MS: +7.8%
20. Lansing, MI: +7.7%

The Northeast and Midwest are home to the strongest markets for year-over-year multifamily rent growth. Reading, PA leads with +12.8% year-over-year rent growth, followed by Atlantic City, NJ (+12.0%) and Lynchburg, VA (+9.5%). 

Meanwhile, the weakest rental markets—for both multifamily and single-family rent growth—tend to be those that overheated during the pandemic boom times. In metros across Texas, Florida, Colorado, and Utah, a large wave of new apartment and single-family construction was delivered in 2023 and 2024, largely driven by multifamily projects and a homebuilding frenzy financed during the period of ultralow interest rates. Some of the downward pressure on rents in these markets could ease as more new inventory is absorbed. 

That being said, even in the softer rental markets, single-family rental growth is still faring better than multifamily with 26 metros seeing outright declines in multifamily rents from January 2024 to January 2025, versus only two markets seeing single-family rents drop in that time, according to LendingOne’s analysis. 

Big Picture: This year is positioned for another year of single-family rent growth outpacing multifamily rent growth in both the strongest rental markets in the Northeast and Midwest, as well as softer markets across Texas and Florida, where new construction has put downward pressure on rent growth. 

Note: The ZORI index is a repeat-rent index that tracks typical market rates by averaging listed rents in the 35th to 65th percentile range, weighted to reflect the full rental housing stock rather than just current listings.