Key Highlights:
- Multifamily fundamentals are moving toward equilibrium, as lower construction starts begin to ease supply pressure and support improving occupancy, rent growth, and transaction activity.
- National vacancy held steady at 8.5% in the first quarter of 2026, while strong absorption of 82,000 units points to potential tightening in the months ahead.
- Rent growth remains subdued on a trailing 12-month basis, but first-quarter growth of 0.9% suggests momentum may be returning as supply-demand conditions improve.
- Construction starts continue to decline sharply in many Sunbelt markets, helping set the stage for excess supply to burn off over time.
- Transaction activity is becoming more market-specific, with Houston, Raleigh, Salt Lake City, Phoenix, Chicago, and Sacramento showing signs that pricing is beginning to stabilize.
- Renter behavior continues to support demand, as high homeownership costs and a less liquid job market encourage more renters to stay put.
