Although below historical levels, multifamily rents increased slightly in April, according to Yardi Matrix’s National Multifamily Report. The U.S. average advertised rent inched up $4 to $1,758; however, year-over-year growth fell to -0.2%.
“While April saw a second month of growth after declining during the winter, the increase was tepid compared to historical seasonal levels,” noted the report. “Advertised rents are up 0.4% year to date through April, about one-third of the average growth rate between 2012 and 2019.”
According to Yardi Matrix, the primary constraint on rent growth is the elevated new supply working through lease-up. Demand has softened with stagnant absorption over the past few quarters. With population growth moderating, cooling migration trends, and an uncertain economic outlook, Yardi Matrix doesn’t expect an acceleration in demand in the near term. As supply normalizes and the excess inventory is absorbed over time, rent growth is projected to recover gradually.
Yardi Matrix revised its multifamily supply forecast for 2026 since its update in the first quarter. It expects a 2% increase in projected completions this year. The updated forecast for 2026 is 478,239 units, almost 25% less than completions in 2025. The under-construction pipeline has consistently declined since March 2024, with 2026 on track to be the first year to see a meaningful decline in new inventory since the post-pandemic supply wave.
Advertised rents were negative year over year in almost two-thirds of Yardi Matrix’s top 30 metros. However, some high-supply markets are showing early signs of stabilization.
“While this improvement is not yet broad-based or sustained, it suggests conditions may be beginning to a turn a corner, though a gradual recovery is still expected,” stated the report.
Year-over-year rent growth continued to be strongest in gateway and Midwest markets in April. New York remained at the top of the list with 4.8% annual growth, followed by San Francisco, 4.1%; Chicago, 3.3%; the Twin Cities, 2.4%; and Kansas City, Missouri, and Philadelphia, both 2.1%. Negative rent growth continued to be seen in many high-supply Sun Belt and Western metros, with Austin, Texas, at -4.3%; Denver, -3.6%; Tampa, Florida, -3.4%; Phoenix, -2.7%; and Raleigh, North Carolina, -2%.
The national occupancy rate remained steady at 94.2% but was down 0.5% compared with the prior year. According to Yardi Matrix, on an absolute basis, occupancy remained lowest in Texas markets, with Houston, Dallas, and Austin below 92.5%.
Month over month, lifestyle rents increased 0.3% in April, while renter-by-necessity rents rose 0.1%. While remaining negative year over year, several high-supply markets—Miami; Phoenix; Raleigh; Denver; Nashville, Tennessee; and Dallas—recorded positive growth. However, Yardi Matrix said weakness persisted across other parts of the nation, with Charlotte, North Carolina, and San Diego posting the steepest month-over-month declines, both at -0.4%, followed by Houston, Las Vegas, and Austin, all at -0.2%.
The single-family rental (SFR) segment also saw increased advertised rents in April, bumping up $7 to $2,211. This is down 0.5% year over year. Occupancy rates averaged 94.5%, down 0.5% from the prior year.
The debate over institutional SFR continues in Washington, D.C., as the Senate’s proposed 21st Century Road to Housing Act’s seven-year disposal requirement is starting to impact development.
“Early signs of impact are already evident in Houston—one of the largest build-to-rent (BTR) markets in the United States, with more than 4,200 units under development and roughly 8,500 completed since COVID,” noted Yardi Matrix. “Developers have begun pausing projects amid regulatory uncertainty, with some indicating new starts have effectively stalled, according to the Houston Chronicle. Analysts estimate the legislation could reduce BTR activity by up to 60%, potentially removing tens of thousands of units from the pipeline and further tightening supply in a segment that has become an important source of housing growth.”