Multifamily rents started 2026 off with a modest increase in January, according to Yardi Matrix’s National Multifamily Report. After five consecutive months of declines, the U.S. average advertised rent rose $3 to $1,741, with year-over-year growth rising 10 basis points to 0.2%.
“While the reversal could be an early indication that the worst of the seasonal softness is behind us, the market remains in a tight spot, with mixed signals on the pace of rent growth heading into the critical spring leasing season,” noted the report. “Ongoing supply pressures are likely to limit rent growth, while the high cost of homeownership continues to keep many potential buyers in the rental market.”
According to Yardi Matrix, new deliveries are forecast to total approximately 469,000 units this year, down 21% from 2025 but still well above the pre-pandemic average of 317,000 dating back to 2013. Pressures are expected to persist, especially in Sun Belt markets that have seen high levels of inventory.
Year-over-year rent growth continued to be strongest in coastal and Midwest markets in January. Chicago topped the list with 3.6% annual growth, followed by New York, 3.3%; the Twin Cities, 2.7%; and Kansas City, Missouri, 2.5%. Negative rent growth continued to be seen in many high-supply Sun Belt and Western metros, with Austin, Texas, at -5%; Phoenix at -3.7%; Denver at -3.2%; Tampa, Florida, at -3%; and Las Vegas at -2.8%.
The national occupancy rate remained at 94.5% in December, but was down 0.1% compared with the prior year. According to Yardi Matrix, the lowest occupancy levels, on an absolute basis, were concentrated in the Sun Belt. In Texas, Houston, Austin, and Dallas were all below 93%.
Month over month, both lifestyle and renter-by-necessity rents increased by 0.1% in January. Similar to year over year, month-over-month gains were seen in coastal and Midwest markets, such as Seattle, Chicago, and New Jersey.
The single-family rental (SFR) segment still saw advertised rents slide in January, falling $2 to $2,184, down 0.9% year over year.
“The White House recently issued an executive order restricting institutional purchases of single-family homes, though such a measure is unlikely to improve affordability in a supply-constrained market,” noted the report. “Institutional investors tend to expand rental inventory, placing downward pressure on both SFR and for-sale home prices.”