According to Origin Investments’ 2025 Rent Growth Forecast, the U.S. is experiencing a growing gap between supply and demand for apartments, which will lead to a national annual year-over-year increase of 2.4% in Class A multifamily rent by January 2026. This trend is particularly evident in markets such as Colorado Springs, Dallas, Jacksonville, Las Vegas, Orlando,Raleigh and Tampa where rates are expected to rise between 4.0% and 5.7%.
Origin Investments has utilized their advanced machine learning models called Multilytics to predict that the West,Northeast,and Southeast regions will also see Y-O-Y Class A rent growth above or at the historical national average of3%. However,the Southwest region is only expected to experience a minimal increase of0 .2%.
David Scherer ,co-CEO of Origin Investments,stated that this surge in new apartment developments was initiated three years ago when interest rates were at an all-time low,but there hasn’t been enough new construction since then.”This means we can expect rents continue rising over the next few years,” he added.
The image shows Jacksonville ,FL as one example market where this forecasted trend may occur.
Overall,the outlook for continuing rent growth remains positive for Class A apartments accordingto Origin’s predictions.
