Multifamily rents remained flat in February, with concerns they may not receive a strong bump this spring, according to Yardi Matrix’s National Multifamily Report. The U.S. average advertised rent was unchanged at $1,740, with year-over-year growth decreasing 10 basis points to 0.1%.
“While February is typically a slower month, there are longer-term issues of concern,” noted the report. “Rents have been essentially unchanged over the past 18 months, while absorption slowed starting in the second half of last year. Domestic migration has slowed, and immigration outflows have weighed on household formation.”
According to Yardi Matrix, although down from peak levels, new deliveries, particularly in the Sun Belt, continue to be a headwind. In addition, the economic backdrop is adding challenges to demand levels—from underwhelming job growth to escalating geopolitical tensions in Iran increasing uncertainty and concerns about energy supply disruptions and rising costs.
However, even though 2026 could shape up to be a weak year for rent growth, the report highlighted that it’s not all bad news.
“Multifamily conditions are by no means dire. Lease renewals are strong and renewal rates continue to be positive,” stated the report. “Core markets such as San Francisco and Chicago have bounced back, while Sun Belt markets retain healthy long-term growth characteristics. Equity and debt capital is plentiful, and opportunities exist for core properties and value-add assets with 2020-2022 vintage mortgages that need to be restructured.”
Year-over-year rent growth continued to be strongest in gateway and Midwest markets in February. New York was back on top of the list with 4.2% annual growth, followed by San Francisco, 3.6%; Chicago, 3.5%; the Twin Cities, 2.3%; and Kansas City, Missouri, 2%. Negative rent growth continued to be seen in many high-supply Sun Belt and Western metros, with Austin, Texas, at -5.2%; Phoenix at -3.6%; Denver and Tampa, Florida, both at -3.2%; and Charlotte, North Carolina, at -1.9%.
The national occupancy rate remained steady at 94.3% in February but was down 0.4% compared with the prior year. According to Yardi Matrix, gains were limited, with modest annual increases in Atlanta and San Francisco.
Month over month, both lifestyle and renter-by-necessity rents were unchanged in February. Only nine of Yardi Matrix’s top 30 markets posted growth. Similar to year over year, month-over-month gains were seen in gateway markets, such as New York, San Fransico, and Chicago, and declines were most pronounced in Austin, Denver, and Orlando, Florida.
The single-family rental (SFR) segment, which is under debate in Washington, D.C., also saw stagnant advertised rents in February, down 0.4% year over year. Occupancy rates averaged 94.5%, down 0.5% from the prior year.
Industry associations, such as the National Multifamily Housing Council and National Rental Home Council, are fighting legislation that could damage the SFR industry. Language in the 21st Century ROAD to Housing Act prohibits institutional investors that own 350 or more homes from buying most single-family homes and require any purchased by institutions to be sold within seven years.
“While the bill exempts build-to-rent (BTR) programs, it creates overall onerous conditions that would make the SFR-BTR segment unattractive for many institutions,” noted the report. “This despite the fact that there is little evidence that institutional SFR increases home prices, and contrary to evidence that institutions boost needed supply that fills demand and keeps home prices from rising.”