Multifamily Rents Rise Slightly as New Construction Slows

Executive Summary

• The overall multifamily vacancy rate rose by 40 basis points (bps) in Q3 to 4.7%, as completions outpaced net absorption for the first time since Q4 2025.
• Net absorption totaled 8,747 units in Q3, down from 42,166 a year ago and bringing the year-to-date total to 260,500 units.
• Average monthly rent increased by 1% year-over-year in Q3 and 0.5% quarter-over-quarter to $2,268.
• Construction completions totaling 85,300 units fell by 11% year-ovrer-year in Q3.
• Multifamily investment volume rose by 140% year-over-year in Q3 to $112.3 billion due to a $69.6 billion entity-level transaction. Excluding that deal, volume was down by 8.7%.
• Individual asset sales declined by 15% to $32.7 billion, while portfolio sales increased by 20.7% to $10 billion.