Multifamily rent prices grew in October on a monthly and yearly basis as declines in some Sun Belt markets shrank, according to a Nov. 10 report from real estate data firm Yardi Matrix.
The 0.1% uptick in rents from September marked the first October increase since 2022, while year-over-year rent growth accelerated to 1.4%, the highest level in over three years. Fourteen of the Matrix top 30 markets saw rent price gains last month.
“Positive October growth was more common pre-pandemic, making this month’s performance an encouraging sign of normalization,” according to Yardi. Last month, Yardi reported that third-quarter rents increased from Q2 for the first time since 2022, an “indication that fundamentals may be stabilizing after several years of supply-driven weakness.”
By segment, both renter-by-necessity and lifestyle rent prices increased 1.3% YOY in October, while single-family build-to-rent prices grew 1.1% YOY.
Absorption normalizing while occupancy lags
Demand is normalizing in the wake of high absorption over the previous two years, per Yardi. About 245,000 units were absorbed in the first half of 2026 — down 27.5% YOY — which falls near 2017-2019 average H1 levels.
Yardi expects deliveries to decline further in the coming year, “providing room to absorb excess inventory and support rent growth if demand holds near its historical pace.”
For now, though, the high number of properties in lease-up is keeping rent discounts elevated, Marcie Williams, chief strategy officer at Bainbridge, told Multifamily Dive. “Concessions have to go away first, and then rents will grow after that,” she said. “We've got strong occupancy, but we also have to meet the market demand.”
The national occupancy rate for stabilized properties stood at 94.3% in October, flat MOM and down 0.2% YOY.
Only six of the Matrix top 30 markets recorded annual occupancy gains in October, led by San Francisco at 0.7%, Austin, Texas, at 0.4%, Phoenix and Denver both at 0.3%, Raleigh, North Carolina, at 0.2% and the Twin Cities at 0.1%. Occupancy was flat or fell elsewhere, with the biggest decreases in Columbus, Ohio, Indianapolis and Las Vegas — all down 0.6% YOY.
SF BTR occupancy remained strong last month, “suggesting stable demand despite seasonal pricing softness,” per Yardi. Lifestyle occupancy stood at 94.6% in October versus RBN’s 96.9%. RBN occupancy reached 99% in several markets, “underscoring strong demand for more affordable rentals.”
Rents by market
General regional rent trends persisted in October, with Gateway and Midwest markets seeing the highest levels of growth, according to Yardi.
San Francisco, bolstered by artificial intelligence-related demand, continued to see by far the highest rent increases at 8.2% YOY. It was followed by Chicago at 4.8% YOY, New York at 3.6%, Kansas City in Kansas and Missouri at 3.1% and Minneapolis and Saint Paul, Minnesota, at 2.7%.
By contrast, rents remained negative in many Sun Belt markets, although declines continue to moderate, per Yardi. Rent prices in Austin fell by 1.7% YOY, followed by Houston at -1.5%, Nashville, Tennessee, at -1.2%, Tampa, Florida, at -0.8% and Charlotte, North Carolina, at -0.7%.
Click here to sign up to receive multifamily and apartment news like this article in your inbox every weekday.
