Key facts
- National multifamily net absorption reached 124,600 units in Q2, the fifth-highest quarterly total in nearly 25 years.
- Vacancy fell to 8.9%, the first time below 9% since 2024.
- Apartment demand has remained resilient despite macroeconomic headwinds.
- Median asking rents declined 1.5% year-over-year nationally.
- Studio apartments experienced the largest rent decrease at 2.2% year-over-year.
- Permitting for new multifamily construction has decreased in some major markets.
National multifamily net absorption reached its fifth-highest quarterly total in nearly 25 years during the second quarter, with 124,600 units absorbed, an 8% year-over-year increase. Vacancy rates also fell below 9% for the first time since 2024, dropping 35 basis points to 8.9% quarter-over-quarter.
Despite macroeconomic headwinds such as muted job growth and slower immigration, renter household formation has shown resilience, outperforming predictions. This strong demand has led to trailing four-quarter absorption exceeding deliveries for the first time since early 2022.
Sun Belt markets, including Dallas-Fort Worth, Phoenix, Atlanta, and Austin, continued to lead the nation in absorption during the first half of 2026. However, multifamily operators are facing declining rents. The median asking rent in the 50 largest metropolitan areas was approximately $1,700, about 4% lower than its summer 2022 peak, though still 16% higher than pre-pandemic levels. The national median asking rent decreased by about 1.5% compared to the previous year, with studio apartments experiencing the largest drop of 2.2%.
Furthermore, some markets have seen permitting for new multifamily construction at its lowest rates since 2019. For instance, New York City permitted only 1.6 new units per 1,000 residents in 2025, and Boston permitted 1.1 units per 1,000 residents. This dip in new construction suggests that the supply increase contributing to rent declines may not persist.