Every month I review rents and vacancy rates. Please let me repeat some recent history …
Back in 2020 and 2021, we saw a surge in household formation, mostly related to roommates splitting up (spending too much time together!). This led to a surge in rents (heavy demand), and rising rents led to a pickup in rental housing starts.
Of course the 2021 surge in household formation was just pulling demand forward, and with more units coming on the market, and less household formation, rents have been soft for the last 3 years.
With fewer rental units coming on the market in 2026, it was possible vacancy rates would decline and rents might increase more than the previous 3 years. However, recent immigration policy will likely put downward pressure on rents this year since deportations have increased and legal immigration has decreased. So 2026 will likely be another year of soft rents.
Rents up 0.4% month-over-month, down 1.7% year-over-year
The national median rent increased by 0.5% in April, and now stands at $1,370. This marks the third straight monthly increase, as the market gears up for the busy summer moving season.
Rent prices nationally are down 1.7% compared to one year ago. Year-over-year rent growth is now at the lowest level that we’ve seen in our estimates going back to 2017, surpassing a record set in the early months of the pandemic. The national median rent has now fallen from its 2022 peak by a total of 5%.
The national multifamily vacancy rate ticked down to 7.2% this month. After hitting a new record in Q1, the vacancy rate may have now hit its peak and turned the corner. This marks the first time that we’ve seen the vacancy rate decrease in over four years.
Realtor.com: 32nd Consecutive Month with Year-over-year Decline in Rents
The following content is for paid subscribers only. Thanks to all paid subscribers!
CalculatedRisk Newsletter is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber.
