Multifamily Vacancy Stabilizes, but Rent Growth Remains Under Pressure

Multifamily vacancy is beginning to stabilize, but elevated supply continues to weigh on rent growth across major U.S. markets.

Nina Dale
May 05, 2026

In partnership with

Good morning. The worst of the vacancy surge may be over, but multifamily owners are still facing a tough reality: rent growth remains under pressure.

🎙️This Week on No Cap: Harbor Group International’s Richard Litton breaks down scaling to $21B, the shift from office to credit, and where he’s finding opportunity in a reset CRE market.

CRE Trivia 🧠

At its peak, how much office space did WeWork lease globally?

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Market Snapshot

S&P 500

GSPC

7,200.75

Pct Chg:
-0.41%

FTSE NAREIT

FNER

834.85

Pct Chg:
-0.87%

10Y Treasury

TNX

4.438%

Pct Chg:
+0.06

SOFR

30-DAY AVERAGE

3.65%

Pct Chg:
-0.00

*Data as of 5/04/2026 market close.

Vacancy Plateau

Multifamily Vacancy Stabilizes, but Rent Growth Remains Under Pressure

After years of softening, apartment vacancies may be stabilizing—but renters still hold the upper hand.

By the numbers: National median rent rose 0.5% in April to $1,370, marking three straight monthly gains after a six-month slump. Still, rents are down 1.7% year-over-year, the weakest annual reading since 2017 and about 5% below the 2022 peak.

Vacancy turning a corner: The national vacancy rate ticked down slightly to 7.2% from 7.3%, the first decline in over four years. While marginal, it suggests the market may finally be absorbing the massive supply wave, including more than 600,000 units delivered in 2024—the highest level since the 1980s.

Supply still in the driver’s seat: Despite early stabilization signals, elevated supply continues to cap rent growth. New deliveries still outpace demand in many markets, keeping pricing power muted and annual rent growth negative for roughly a year.

Leasing slowdown persists: Units are taking longer to fill, averaging 35 days on market—up from 30 days last year and more than double the pace seen during the 2021 peak. This reflects more cautious renter behavior and slower absorption.

Winners and losers: Regional divergence remains sharp. Sun Belt and Mountain West markets—like Austin, where rents are down 5.7% year-over-year and over 20% below peak—continue to struggle under heavy supply. Meanwhile, more balanced markets such as Virginia Beach (+5.2% YoY) and parts of the Midwest are holding up better.

➥ THE TAKEAWAY

Post peak pressure: Vacancy may have peaked, but without a full supply-demand reset, rent growth will remain limited, extending renter-friendly conditions into 2026.

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✍️ Editor’s Picks

Capital raising: Your investor portal matters more than you think. The most effective GPs pair human relationships with tools built around real fundraising workflows. Here’s what’s changing. (sponsored)
Office overhang: CMBS distress across the 50 largest U.S. metros held at 12.2% in April 2026, driven by persistent office sector strain and growing multifamily stress in urban core markets.
Vacancy taxes: U.S. cities are targeting second homes with new taxes to raise revenue and nudge owners to rent, though the overall housing impact may be limited.
Your competition is learning AI faster: AI.Edge from the A.CRE team keeps you ahead with monthly training on the tools and workflows reshaping CRE. (sponsored)
Tight spreads: Regional banks reported stable Q1 earnings as CRE held firm, though tight spreads and office exposure continue to pressure margins.
AI infrastructure: Blackstone is seeking up to $1.75B in an IPO for a data center REIT to capitalize on surging AI-driven demand.
Rate uncertainty: Fed officials are signaling potential rate hikes amid persistent inflation and geopolitical risks, clouding expectations for a clear path toward monetary easing.
AI buildout: KKR is backing a new $10B AI infrastructure firm led by a former AWS CEO to develop data centers and power assets.

🏘️ MULTIFAMILY

Starts diverge: Multifamily starts jumped in March while permitting declined, signaling cautious developers amid economic uncertainty and unclear signs of a sustained growth cycle.
Supply tailwind: Camden expects declining apartment supply to drive stronger rent growth and performance in the second half of 2026, led by Sun Belt markets.
Fraud surge: AI-generated fake documents are fueling a rise in rental fraud, increasing costs and risks for apartment owners as detection becomes more difficult.
Record financing: Omega secured a record $130M HUD loan in Florida to refinance a newly built Miami-area multifamily property and return equity to the borrower.

🏭 Industrial

Industrial expansion: Global Net Lease is acquiring Modiv Industrial in a $535M all-stock deal to boost industrial exposure, earnings growth, and reduce office concentration.
Distribution shakeup: Republic National Distributing is cutting thousands of jobs and shedding facilities ahead of a major acquisition by Reyes Beverage, reshaping its real estate footprint.
Yard premium: Industrial outdoor storage is emerging as a high-demand niche outperforming traditional assets, as investors target scarce, low-vacancy sites with strong returns.

🏬 RETAIL

Mega bid: GameStop has made an unsolicited $56B offer to acquire eBay, aiming to create a larger e-commerce rival to Amazon despite skepticism over financing.
Retail resilience: U.S. retail rents rose 2.4% in Q1 2026 as limited new supply and steady demand offset slightly higher availability driven by store closures.
Digital footprint: QSR operators are reshaping real estate strategies by prioritizing smaller, efficient formats and digital integration to better target increasingly selective, value-driven consumers.
Hidden revenue: Retail landlords are transforming shopping centers into multi-income assets by monetizing parking, data, advertising, logistics, and energy.

🏢 OFFICE

Office fallout: Spirit Airlines’ shutdown leaves its $250M South Florida HQ in limbo, adding uncertainty to a weakening Broward office market already facing declining demand and leasing activity.
Tower branding: PNC Bank is relocating its Austin HQ to ATX Tower with signage rights, underscoring its regional expansion and confidence in the city’s strengthening office market.
HQ migration: Pudu Robotics relocated its U.S. HQ from Silicon Valley to DFW to support scalable growth, optimize logistics, and strengthen its expansion across the Americas.

🏨 HOSPITALITY

Portfolio pruning: Park Hotels & Resorts is selling non-core assets while reinvesting in renovations and refinancing, aiming to streamline its portfolio and boost long-term growth and returns.
Campus selloff: A 1,043-room conference center near Chicago is up for sale as corporations move away from owning large training campuses.
Strategic review: AHIP has launched a strategic review to explore potential transactions and maximize shareholder value as it continues asset sales and balance sheet improvements.