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 has 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 0.5% month-over-month, down 1.7% year-over-year
The national median rent increased by 0.5% in May, and now stands at $1,379. This marks the fourth straight monthly increase, as the market enters the busy summer moving season.
Rent prices nationally are down 1.5% compared to one year ago. Year-over-year rent growth ticked up slightly compared to last month, but remains near the lowest levels that we’ve seen in our estimates going back to 2017. The national median rent has now fallen from its 2022 peak by a total of 4.4%.
The national multifamily vacancy rate currently stands at 7.2%, down slightly from the February peak. After hitting a new record in February, the vacancy rate is now decreasing for the first time in over four years.
Realtor.com: 33rd Consecutive Month with Year-over-year Decline in Rents
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