U.S. Multifamily Fundamentals Improve in Q2 2026 as Demand Outpaces New Supply

The U.S. multifamily market gained momentum in the second quarter of 2026 as apartment demand accelerated and new construction continued to moderate, according to CBRE's latest research.

Net absorption, which measures the change in occupied units, totaled 167,500 units in Q2 2026, nearly double the 84,300 units absorbed in Q1 2026. The national multifamily vacancy rate declined by 50 basis points quarter-over quarter to 4.3%, below its long-term average of approximately 5.0%.

New supply growth continued to ease, with 77,700 units delivered in Q2 2026, a 14% decrease from a year earlier. Construction activity is expected to slow further in the coming quarters. Net absorption exceeded new construction completions for the second consecutive quarter, signaling improving market fundamentals.

Average monthly rent rose 0.5% year-over-year and 1.5% quarter-over-quarter to $2,257 in Q2 2026. Rent growth continued to improve, supported by stronger fundamentals and positive performance across the Midwest, Northeast and Pacific regions.

Multifamily investment volume totaled $34.9 billion in Q2 2026, down 2.7% from a year earlier. Even with the modest decline, the multifamily sector remained the largest property sector for commercial real estate investment during the quarter, accounting for 27% of total volume.

"The supply wave in the U.S. multifamily sector is cresting, with deliveries down 14% year-over-year and absorption nearly doubling quarter-over-quarter," said Kelli Carhart, Head of Multifamily Capital Markets for CBRE. "Multifamily is positioned for its strongest rent recovery since 2022."

Other Q2 2026 Multifamily Sector Highlights:

• The Midwest (2%), Northeast (1.7%) and Pacific (1.4%) regions led the U.S. in year-over-year rent growth.
• All 69 markets tracked by CBRE recorded positive net absorption, up from 65 markets in Q1 2026. New York led with 17,600 units, followed by Dallas (10,000) and Denver (6,600).
• Net absorption exceeded new supply in 68 markets, up from 47 markets in Q1 2026.
• Vacancy rates declined quarter-over-quarter in 68 markets, compared with 42 markets in Q1 2026.