National Multifamily Report – January 2026
The U.S. multifamily market turned a new leaf in 2026, kicking off the year with advertised asking rent growth after five consecutive months of negative movement, according to Yardi Matrix’s latest survey of 140 markets. Average rents increased $3 to $1,741 in January, marking an annual growth of 0.2 percent, which was also up 10 basis points year-over-year. Meanwhile, the single-family build-to-rent sector continued its downward trajectory with advertised rates ticking down $2 to $2,184 in January, representing a 0.9 percent decrease compared to last year.
Yearly, Midwestern and coastal markets posted the highest advertised rent growth, with Chicago leading at 3.6 percent, followed by New York City (3.3 percent) and Twin Cities, Minn. (2.7 percent), Kansas City, Mo. (2.5 percent) and San Francisco (2.0 percent). High-supply markets continued to present price adjustments, such as Austin (-5.0 percent), Phoenix (-3.7 percent) and Denver (-3.2 percent). The national occupancy rate stood at 94.5 percent in December, down 0.1 year-over-year, with some of the lowest figures concentrated in the Sun Belt, especially Texas, where Houston (92.2 percent), Austin, Texas (92.3 percent) and Dallas (92.9 percent) were all under 93.0 percent.
Multifamily rent growth rebounds, absorption gives mixed signals
Short-term average advertised rate growth matched the annual increase, both registering at 0.2 percent. Mirroring macro trends, the same pricing adjustments were observed across regions, with coastal and Midwest markets posting gains and Sun Belt metros witnessing rent contractions. Seattle, Chicago and New Jersey stood out with the greatest monthly improvements (0.6 percent each), while Tampa, Fla. (-0.8 percent), Austin and Houston (-0.3 percent each) were near the bottom. The divide between Renter-By-Necessity and Lifestyle properties was evident in markets such as Detroit, where rent growth favored RBN, suggesting renters trade down amid affordability pressures, as well as San Diego, where the opposite effect took place, potentially revealing strong income demographics and limited new supply.
With a top-three finish in terms of multifamily absorption over the past decade, 2025 saw solid demand. However, a concerning pattern emerged during the second half of the year, whereby absorption declined by 50 percent compared to the first six months. The drop was even steeper, at 80 percent, between the second and fourth quarters, while the average over the past decade is just 31 percent. This decline could reflect broader economic trends that reduce household formation, such as immigration policies and job growth. Nonetheless, 519,000 units were absorbed nationally in 2025, and the leading metros were across the Sun Belt, with Austin leading the way (7.5 percent of stock absorbed in 2025), followed by Charlotte, N.C. (7.4 percent), Raleigh-Durham (6.0 percent) and Nashville, Tenn. (5.6 percent).
The average single-family build-to-rent advertised asking rates decreased $2 to $2,184 in January, representing a 0.9 percent decline year-over-year. Occupancy rates clocked in at 94.9 percent in December, unchanged compared to 2024. While the White House’s recent executive order restricting institutional investment in single-family homes aims to ease affordability concerns, its market implications might lead to the opposite effect. Metros with typically high SFR institutional investment tend to be more affordable, including Tampa (-2.7 percent SFR rents, -2.1 percent median sales price, according to Redfin), Houston (-1.2 percent; -5.4 percent) and Atlanta (-0.5 percent; -5.7 percent). Conversely, markets with limited institutional investment, such as Twin Cities (7.2 percent; 9.2 percent), Chicago (6.7 percent; 4.3 percent) and South Dakota (2.0 percent; 4.7 percent), registered gains in terms of pricing across rents and home acquisitions.
Source: Multi-Housing News