- US advertised multifamily rents rose $2 to $1,773 in August, lifting annual growth to 0.4%, according to Yardi Matrix.
- San Francisco led major markets with 6.1% annual growth, while Austin remained last at negative 2.8%.
- The national lease-up inventory has fallen from 1.4M units in early 2025 to 1.2M, easing pressure on existing properties.
US multifamily rents increased in August as slowing deliveries started improving the supply-demand picture. Yardi Matrix reports that the national advertised rent rose $2 to $1,773, while annual growth accelerated 20 basis points to 0.4%. August also produced the first monthly increase in several years.
The gains remain modest, but conditions are moving in a more favorable direction. Several oversupplied markets posted monthly increases even while their annual growth remained negative. Meanwhile, the national occupancy rate held at 94.2% in July, although that represented a 50-basis-point annual decline, according to Yardi Matrix’s August 2026 report.
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Sun Belt Supply Starts to Burn Off
The biggest obstacle to stronger multifamily rent growth remains the volume of newly delivered apartments still seeking tenants. Yardi Matrix counted 1.2M units nationally in lease-up at the beginning of August. That was below the 1.4M-unit peak in early 2025, but roughly double the previous decade’s average.
Multifamily starts and deliveries have also fallen by one-third from their 2023 and 2024 cycle highs. That slowdown is gradually reducing competition from new properties.
National Average Rents
The effect is becoming visible in several Sun Belt markets. Denver, Orlando, and Austin all posted positive monthly rent growth in August despite continuing to record annual declines.
The Details
Rent performance remained highly fragmented across Yardi Matrix’s top 30 markets. San Francisco led annual growth at 6.1%, followed by New York City at 5.3%. Kansas City reached 3.0%, while Chicago and the Twin Cities posted 2.6% and 2.4%, respectively.
Sun Belt markets remained at the opposite end. Austin rents fell 2.8% annually, followed by Denver at 2.0%, Tampa at 1.8%, Houston at 1.7%, and Phoenix at 1.6%.
August’s monthly figures were more encouraging. San Francisco and Baltimore led with 0.5% gains, while San Diego rose 0.4%. Denver, Orlando, and Portland each gained 0.3%. Overall, 16 of Yardi Matrix’s top 30 markets recorded monthly increases.
Lease-Ups Explain the Rent Divide
Supply explains much of the widening performance gap between metros. Yardi Matrix found a strong relationship between rent growth and the percentage of local apartment inventory still in lease-up.
Charlotte had 11.6% of its stock in lease-up, the highest share among the markets analyzed. Austin followed at 10.9%, with Phoenix at 9.8%, Nashville at 8.9%, Orlando at 8.5%, and Raleigh-Durham at 8.1%.
Markets with less new supply are producing stronger rent growth. Detroit had only 2.1% of inventory in lease-up, followed by Baltimore at 2.4% and Chicago at 2.5%. San Francisco stood at 3.0%.
Still, the Sun Belt pipeline is moving in the right direction. Austin’s lease-up share peaked at 18.3% in June 2025. By August 2026, it had dropped to approximately 11%.
Why It Matters
The August numbers suggest the apartment market is entering a transition rather than staging a full recovery. Rent growth remains well below historical norms, and occupancy has yet to rebound nationally. However, the supply shock that pressured operators is beginning to lose intensity.
That distinction matters for owners and investors. Properties have faced competition from new developments offering concessions to fill units. As lease-up inventories decline, existing properties should face less pressure from newly completed projects.
Yardi Matrix’s 2026 data shows why that process will vary significantly by market. Austin had 41,192 units in lease-up at the beginning of August. Dallas had 68,752, while Phoenix had 42,286.
By comparison, Detroit had 4,755 units in lease-up and Baltimore had 5,997. Those supply differences help explain why some Midwest and gateway markets currently outperform faster-growing Sun Belt metros.
Build-to-rent is showing similar regional divergence. National advertised BTR rates remained at a record $2,246 in August, up 0.5% annually. Miami led annual BTR rent growth at 5.4%, while San Antonio fell 5.5%.
What’s Next
Yardi Matrix expects supply conditions to keep improving as the development pipeline contracts. However, its year-end forecasts show that several high-supply markets could remain under pressure through 2026.
The firm forecasts Austin rents falling 3.9% for 2026, with Phoenix declining 2.8% and Denver dropping 2.4%. Tampa’s forecast calls for a 2.2% decline. By comparison, San Francisco is projected to grow 3.9%, New York City 3.7%, and Chicago 3.1%.
Economic uncertainty remains the wildcard. Yardi Matrix warned that trade tensions could increase construction and energy expenses while sustaining inflation and higher interest rates.
For apartment operators, the near-term story remains supply. August provided evidence that pressure is easing, but the recovery will depend heavily on how quickly individual markets absorb their remaining lease-up inventory.
