Multifamily rent prices ticked up again on a monthly and yearly basis in May, but the seasonal spring increase has been muted this year compared to pre-pandemic levels, portending weak growth for the full year, according to a June 4 report from Yardi Matrix. Soft demand is also weighing on occupancy rates, which are down to their lowest levels since 2013.
In May, entering the busiest leasing period, the average advertised rent increased 0.3% month over month, or $6, to $1,767, according to Yardi. This represents a growth of 0.2% from the same time last year.
Rents have increased about 1% overall through the first five months of 2026, according to Yardi. That matches the average pace of the past four years, but is well below the pre-COVID norm of a roughly 2% increase between January and May.
Despite recent gains, advertised rents are down on a year-over-year basis in 18 of the Matrix top 30 metros. Performance also varied considerably by geography and product type.
Overall, the spring leasing season is generating less pricing power than it did historically due to the recent wave of apartment deliveries and large number of properties in lease-up, according to Yardi. General economic uncertainty and lack of affordability are also having an impact.
Other new rent reports show similar patterns. Apartment List’s May 27 report showed the national median rent grew MOM by 0.5% in May — the fourth straight monthly increase — but fell 1.5% on a yearly basis. That growth remains near the lowest levels recorded since 2017.
Effective asking rents were up 0.6% MOM in May, per a June 4 analysis from RealPage, and prices have grown moderately each month so far this year. Still, that growth hasn't wiped out previous declines, and May rents are down 0.2% year over year.
On one hand, this sequential rent growth supports the thesis of resilience, RealPage Chief Economist Carl Whitaker told Multifamily Dive in emailed comments. But conversely, the May 2026 growth rate is the fourth-weakest May reading since 2010.
“Still, the market’s ability to generate some demand despite macroeconomic pressures and while simultaneously working to absorb the largest block of new apartment supply since 40-plus years shouldn’t go understated,” Whitaker said.
Variation by region, housing type
May’s rent growth, though moderate, was widespread, according to Yardi. Just four of Matrix’s top 30 markets posted MOM declines and even high-supply metros are showing signs of improvement. For example, Austin, Texas, saw a 0.4% month-over-month increase and Denver recorded 0.8% MOM growth.
On a regional basis, Gateway and Midwest markets recorded the highest year-over-year rent growth, led by San Francisco (4.5% YOY), Chicago (3.5%), New York City (3.3%), the Twin Cities in Minnesota (2.6%) and Kansas City in Kansas and Missouri (2.1%), according to Yardi.
San Francisco also topped Apartment List’s rankings of fastest YOY rent growth at 6.3%, while RealPage recorded annual rent growth there at 10.6%.
Rent growth remains negative YOY in some high-supply metros, led by Austin (-3.7%), Phoenix (-3.1%), Denver (-2.9%), Tampa, Florida (-2.8%) and Raleigh, North Carolina (-1.7%), per Yardi. Apartment List also saw the softest conditions in Austin, with rents down 5.1% YOY.
Concessions have risen to their highest rate of usage in over a decade, according to Whitaker, with 17% of vacant units offering a concession as of May — the highest rate during that month since 2013. Discounts are significant, equal to 40 days rent-free on average.
Still, underlying demand metrics like retention, traffic and rent-to-income ratios “indicate a sturdy foundation for demand, all the while supply continues to normalize,” Whitaker said.
The single-family build-to-rent market continued its strong performance in May, with rents up $8 MOM at $2,224, per Yardi. SF BTR rents have grown by $23 over the past three months.
Lifestyle rents also continued to outperform, posting a 0.4% MOM increase in May, while renter-by-necessity rents rose 0.3% overall, per Yardi. The markets with the highest monthly growth in lifestyle rents were Detroit (1.5%), New York City (1.4%) and Columbus, Ohio (1.1%), while RBN prices rose most in Charlotte, North Carolina (1.6%), San Diego (1.1%) and Baltimore (0.8%).
Supply, economic concerns weigh on occupancy
April brought a broad decline in occupancy, signaling softer market conditions, Yardi’s analysis shows. The national occupancy rate fell in April by more than 200 basis points from its 2022 cycle peak, to 94.1%, its lowest level since 2013. It’s down 60 basis points YOY.
Elevated supply remains the primary driver according to Yardi, but the occupancy decrease also points to a slower leasing environment as labor market conditions and consumer sentiment remain weak.
“Economic conditions are less supportive as well,” according to Yardi. “Inflation accelerated to 3.8% in April — the highest reading in three years — as rising energy prices pushed gasoline costs higher and eroded consumer purchasing power.”
The only major market to post an occupancy increase, up 0.2% YOY, was San Francisco, which is benefiting from strong demand tied to artificial intelligence-related job growth, per Yardi. All other markets saw YOY declines, with the largest drops occurring in Tampa (-1.4%), Las Vegas and Houston (both -1.1%), Denver and Washington, D.C. (both -1%).
Texas remains among the weakest regions among major markets, according to Yardi, with Houston (91.6%), Austin (91.8%) and Dallas (92.3%) posting the lowest occupancy rates.
RealPage’s report shows U.S. occupancy at 95.5% after climbing for five months straight, but this trend follows a steady decline in the second half of 2025. Units are taking an average of 30 days to get leased after being listed, two days longer than at this time last year.
Apartment List noted that the vacancy rate ticked down recently, but it remains elevated above its long-run average.
“With mixed news on the labor market combined with renewed inflation concerns, there is reason to think that demand could be sluggish this summer,” per Apartment List. “It’s possible that the vacancy rate will simply plateau at this elevated rate, rather than continuing to decline in a meaningful way.”
Nonetheless, there are positive indicators too, according to Whitaker.
“Labor productivity appears to be getting a mighty boost from AI adoption, which is further supporting strong wage growth. The cost of homeownership far exceeds the cost of renting,” Whitaker said. “And deeply embedded demographic tailwinds – not to mention societal shifts and the evolving perception of renting a home – are likely to remain in place.”
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