The multifamily market is showing early signs of vacancy stabilization after a multi-year loosening cycle, but rent growth remains subdued as elevated supply continues to weigh on pricing power across major markets, according to Apartment List data.
The national median rent rose 0.5% in April to $1,370, marking the third consecutive monthly increase following six months of declines and reinforcing typical seasonal strength heading into the summer leasing period. However, rents remain down 1.7% year-over-year, the weakest annual reading in Apartment List's data history going back to 2017 and roughly 5% below the 2022 peak.
The national multifamily vacancy rate edged down to 7.2% from 7.3%, marking the first decline in more than four years after a sustained loosening cycle that pushed vacancy to its highest level in at least a decade. While modest, the move may indicate the market is beginning to absorb the wave of new supply delivered over the past several years. Multifamily construction peaked in 2024, when more than 600,000 new units came online — the highest annual total since the mid-1980s.
Even as vacancy levels show tentative signs of leveling off, the broader supply backdrop continues to limit rent growth. The market is still working through an extended pipeline of new deliveries. Although construction activity has slowed from its peak, cumulative supply additions continue to outpace demand absorption in many markets. National rents are still below prior peaks and year-over-year growth has been negative for roughly a year.
Units are taking an average of 35 days to lease, up from roughly 30 days a year ago and more than double the pace seen during the 2021 peak. While list-to-lease times improved slightly from March on a seasonal basis, they remain elevated, reflecting slower absorption and more selective renter demand compared to the peak leasing cycle.
While national trends point to stabilization, performance varies sharply across regions. Sun Belt and Mountain West markets continue to see the most pronounced softness, driven largely by elevated new supply. Austin leads major metros with a 5.7% year-over-year rent decline, with prices more than 20% below their 2022 peak. Other supply-heavy markets — including parts of Texas, Florida, Arizona and Colorado — show similar pressure.
At the other end, select metros remain resilient. Virginia Beach recorded the strongest annual rent growth among large markets at 5.2%, while portions of the Midwest and select coastal markets continue to post steady gains supported by relative affordability and more balanced supply conditions.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.