Published on Monday, December 8, 2025
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Overall, rents were down 0.7% in the year ending October 2025, with Class B and C sliding into negative territory.
Class A apartments are the only multifamily segment posting annual rent growth, according to RealPage’s latest occupancy and rent analysis. Class A rents rose 1.4% year-over-year in October, while Class B rents slid 0.6% and Class C rents dropped a much steeper 3.2%, pulling down the national average.
Occupancy trends also reflected the widening performance gap across asset classes. Class A product recorded 94.6% occupancy in October, in line with its pre-pandemic norm of 94.7% and up 20 basis points on the month. Class B and C assets both held occupancy at 95%, with Class B flat and Class C up 10 basis points. Those levels, however, remain slightly below their 2015–2019 averages of 95.3% and 95.4%.
Elevated new supply continues to pressure U.S. apartment fundamentals, but demand remains well above historical norms, helping to offset some of the impact. Still, rent trends varied significantly by asset quality. Average effective asking rents reached $2,378 for Class A, $1,818 for Class B and $1,521 for Class C.
Across all U.S. apartments, effective asking rents declined 0.7% in the year ending October 2025, the sharpest drop in more than four years. Class C units were the biggest drag on national performance, posting the steepest annual decline for that category in nearly 14 years. Class B posted the largest decline for that segment in over four years.
Meanwhile, for the 55th consecutive month, Class A rents grew year-over-year, underscoring the continued strength of high-end product in an otherwise softening market, according to RealPage.