The Rent Surge is Coming: Here's Where Multifamily is Headed (and Why It Matters)
Hello Friends,
The multifamily landscape is on the cusp of a landlord-friendly era. After a short-lived dip in rental prices, the winds are shifting. If you're a passive investor, syndicator, or someone just watching from the sidelines, here's the bottom line: rents are rising again — and this time, it could be for the next decade.
So, what's driving this shift?
🌎 1. The Great Housing Squeeze
The 2023-2024 construction boom gave renters a temporary break, especially in Sunbelt cities like Austin and Phoenix. But now? That pipeline is slowing down. Meanwhile, sky-high mortgage rates are keeping homeownership out of reach for many. More people are staying renters for longer.
Result? Surging rental demand, just as new supply is drying up.
📊 2. Where Are Rents Set to Soar?
According to industry forecasts, here are the top markets poised for the biggest rent increases from 2025 to 2035:
Top 7 Cities by Projected Rent Growth (2025-2035):
Austin, TX — 34% or 3.4% Year over Year
Phoenix, AZ — 30% or 3.0% Year over Year
Tampa, FL — 29% or 2.9% Year over Year
Charlotte, NC — 28% or 2.8% Year over Year
Atlanta, GA — 27% or 2.7 % Year over Year
Denver, CO — 26% or 2.6% Year over Year
Dallas, TX — 25% or 2.5% Year over Year
These are not just hot markets. They are migration magnets fueled by job growth, affordability (compared to coastal cities), and strong demographic tailwinds.
⚖️ 3. What This Means for Multifamily Investors
Higher Rents = Higher NOI: When rents rise faster than expenses, your net operating income grows, and so does the value of your asset.
Timing is Everything: Buying now in growing markets lets you lock in today's prices before the next wave of rent appreciation.
Cap Rates May Compress: As rents rise and demand increases, more capital will chase these assets. That means values go up even if cap rates stay flat or dip.
🚀 4. The Opportunity
If you’re looking for long-term cash flow, rent growth is one of the most powerful forces on your side. And the data is clear: select markets will outperform over the next decade.
I'm personally doubling down on secondary markets within one hour of Austin, Tampa, and Charlotte, and we are looking at all markets with pro-growth policies, rising incomes, and in-migration trends.
🗓️ 5. Last Week at Level 7
Last week was a busy week. We analyzed over 10 markets this past week. We underwrote over 25 deals and realized we had 3 decent deals. We reached out to many brokers this past week and submitted 3 Letters of Intent (LOIs) more to come in the coming weeks.
Want to chat about investing in any market? Want to know how we rate markets? Want to know what markets we feel are under the radar? DM me or Comment Below
Let’s make your next move the right one.
To your success,
CFO, Level 7 Multifamily Investors
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🎓 Bonus: Share this with a friend who still thinks rent is going down in 2025. They'll thank you later.