Multifamily Vacancy Stabilizes While Rent Growth Stays Weak

Multifamily vacancy stabilizes as robust supply tempers rent growth, with supply overhang weighing on leasing trends across major US markets.

May 4, 2026

Valerija I.

Multifamily vacancy dropped to 7.2%, stabilizing after years of increases.
National rent rose 0.5% in April but is still down 1.7% year-over-year.
Supply additions continue to outpace demand, softening rent growth in key markets.
Regional disparities persist, with Sun Belt markets lagging and Midwest showing resilience.

Key Takeaways

Vacancy Rate Signals Leveling

Multifamily vacancy rates are stabilizing for the first time in over four years. The national rate fell slightly to 7.2% in April. According to Globe St, this dip follows a long stretch of rising vacancies. Developers drove that trend with an unprecedented construction surge. The pipeline peaked in 2024. More than 600,000 new multifamily units delivered that year. This marked the largest supply wave since the 1980s.

Rent Growth Remains Subdued

The multifamily market recorded a third consecutive monthly rent increase, with the national median rent up 0.5% to $1,370 in April. Despite this uptick, rent growth remains historically weak. Rents are still down 1.7% year-over-year according to Apartment List data and sit about 5% below the sector’s 2022 peak. The ongoing supply overhang continues to weigh down rent growth, with annual growth in negative territory for about a year.

Leasing Activity Slows

Units are taking longer to lease in most markets. As of April, apartments averaged 35 days on the market before leasing, up significantly from 2021 when turnover was more than twice as fast. While there was a modest seasonal improvement compared to March, leasing velocity remains slow as new deliveries outpace absorption and renters become more selective.

Regionally Divergent Performance

Multifamily vacancy trends now diverge across regions. Sun Belt markets face ongoing pressure from new supply. Austin, Texas stands out. Rents fell 5.7% year over year. They now sit more than 20% below 2022 peaks. Similarly, parts of Florida, Arizona, and Colorado show continued softness. Supply growth continues to weigh on pricing.

Meanwhile, Midwest and select coastal markets remain more stable. Virginia Beach leads large metros with 5.2% annual rent growth. Balanced supply and relative affordability support that growth. This uneven regional performance aligns with broader data showing rent growth losing momentum earlier this year, as national trends softened before the spring leasing season began. Overall, the vacancy outlook shows mixed conditions. Supply pressure persists, but early signs of stabilization are emerging nationally.