Rent Growth Trends & Forecast: Multi‑Family Housing in 2025‑2026
Indicator Overview: Rent growth reflects demand and supply in the rental market. After surging in 2021‑2022, rent increases cooled to 3‑4 % annual rates by mid‑2025 as apartment construction surged and household formation slowed. Oversupply in some Sun Belt markets pushed rents lower, while tight conditions persisted in major coastal cities.
Six‑Month Trend: Over the past six months, national rent growth decelerated further as new multifamily units came online and economic uncertainty weighed on household formation.
Six‑Month Forecast: Rent growth is expected to moderate to 2‑3 % annual rates through mid‑2026. Markets with high vacancy rates may experience flat or declining rents as supply outpaces demand.
Note: The 6‑month trends chart is included on the Real Estate Market Indicators page. Please view there for the latest chart.
