Market Trends

Multifamily market conditions are easing, with rent growth continuing its upward climb, reaching 1.3 percent in August.

How is the multifamily recovery going in Texas? The Lone Star State’s four major multifamily markets in Texas offer a picture of the conditions facing multifamily owners and operators in the Sun Belt.

The slight acceleration in annual rent growth reflects the gradual nature of the multifamily market recovery, following a weaker-than-usual spring leasing season.

This year’s below-average spring leasing season wraps up with national rent growth at 0.8 percent, while high-flying San Francisco reaches near double-digit growth, and beleaguered Austin finally climbs out of last place.

After peaking at a 40-year high in 2024, delivery of new multifamily units has tapered off, but lingering oversupply has continued to drive up vacancy. Explore the outlook for the year ahead.

Heading into the summer leasing season, annual rent growth remains weaker than usual. Nationally, the multifamily market saw rents grow by only 0.7 percent annually, marking a plateau during a season typically known for acceleration.

These dozen multifamily markets face elevated vacancy as weak demand has failed to absorb record-high supply.

Annual multifamily rent growth has plateaued to 0.5 percent in April, reflecting weaker-than-typical leasing momentum this spring.

Annual rent growth slipped to 0.4 percent in March, underperforming the seasonal average and continuing a deceleration trend that began last year.

Constrained by elevated supply and insufficient demand, annual rent growth slowed to 0.4 percent nationally in February, while powerhouses San Francisco and Norfolk outperformed the nation.

Multifamily rents began the year with a modest but upward trend, growing by 0.6 percent, and reflecting the gradual easing of oversupply conditions.

What does 2026 hold for apartment owners and operators? Explore the latest CoStar predictions for the sector in the year ahead.