H1 2026 U.S. multifamily market overview
Despite pricing remaining well below peak levels, multifamily fundamentals continue to improve across much of the U.S. Strong renter demand, rising occupancy, and a significant slowdown in new construction deliveries are creating a more favorable operating environment for apartment owners and investors.
36.7%
more expensive to own than rent
Across the U.S., average monthly mortgage payments remain 36.7% higher than multifamily rents, though the gap has narrowed slightly from record highs reached in Q4 2023.
Elevated ownership pricing continues to drive demand for multifamily, with 92.2% of current inventory occupied, up 30 basis points from the end of 2025.
Elevated ownership pricing continues to drive demand for multifamily, with 92.2% of current inventory occupied, up 30 basis points from the end of 2025.
23.4%
drop in new deliveries in the past 12 months
New construction delivery activity fell by 23.4% over the past 12 months, putting 2026 on track for the lowest level of new deliveries since 2021.
Rent growth has been limited to markets that have been slower to deliver new product. California, specifically the Bay Area, has experienced high rent growth amid the rapid expansion of the technology and AI industries.
Rent growth has been limited to markets that have been slower to deliver new product. California, specifically the Bay Area, has experienced high rent growth amid the rapid expansion of the technology and AI industries.
5.6%
increase H1 2026 sales compared with H1 2025
Multifamily sales volumes increased 5.6% in H1 2026, with full-year volume projected to reach its highest level since 2022.
New York City Metro, the San Francisco Bay Area, and Washington, D.C. emerged as the leading markets for multifamily investment activity in H1 2026, collectively comprising nearly 50% of 2027 loan maturities among the nation’s top 10 multifamily markets.
New York City Metro, the San Francisco Bay Area, and Washington, D.C. emerged as the leading markets for multifamily investment activity in H1 2026, collectively comprising nearly 50% of 2027 loan maturities among the nation’s top 10 multifamily markets.
For more information, contact:
-
Alex Ern
Senior Manager - U.S. Capital Markets, Market Intelligence
Washington, DC, Washington, DC Metro
Capital Markets Group, Market Intelligence
Contact
+1 434 566 9550
-
Will Dunkel
Senior Analyst - U.S. Capital Markets, Market Intelligence
Washington, DC
Market Intelligence
Contact
+1 202 644 8700
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