Rental Housing Trends Stabilize in Early 2026

Multifamily CMBS Delinquency Trends

Multifamily CMBS delinquency rates moved modestly lower to finish 2025, reports Chandan Economics following Trepp data. As of December, the rate stands at 6.64%, dropping from 7.12% in October and marking an incremental improvement over recent months. The sector continues to operate under challenging conditions compared to pre-pandemic benchmarks, but recent data points to stabilization rather than further deterioration.

Short-term trends show the December multifamily delinquency rate is only slightly higher than September’s 6.59%. While elevated versus prior years—the rate was 4.58% in December 2024—the pace of increase appears to have eased, with income growth and loan restructuring helping to contain distress. Earlier in the year, weakness in the multifamily sector had played a central role in driving CMBS delinquency rates higher, but recent data suggests that deterioration has slowed.

Home Price Normalization

National home prices, tracked by the S&P/Cotality Case-Shiller index, rose 1.4% year-over-year in October 2025. This marks continued deceleration from the rapid appreciation seen in prior years. Home values remain above pre-pandemic levels, but the market is no longer showing strong upward pressure. Month-over-month data indicates prices have stabilized, aided by lower mortgage rates.

Affordability concerns and higher inventory keep price growth limited, reflecting an industry adjusting to new financial realities rather than showing signs of widespread correction. The rental housing sector, similarly, is navigating a challenging environment but is exhibiting signs of gradual improvement as 2026 begins.