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A wave of new multifamily supply is still hitting the market just as renter demand weakens—especially among young adults—pushing vacancies higher and rents lower, CNBC reports.
National median rent slipped 1% in November to $1,367, marking a fourth consecutive monthly decline and a 5% drop from its 2022 peak, Apartment List reports. Vacancies remain elevated at 7.2% following last year’s record highs.
The softening is most pronounced in markets flooded with new product or facing economic slowdowns, including Austin, Las Vegas and Boston. CoStar notes young adults are delaying household formation as rental costs stay high and the job market softens, shrinking the core renter pool. Public apartment REITs like AvalonBay and Equity Residential are down year-to-date amid the pullback.
Despite national softness, renters are gravitating toward more affordable “hidden gem’’ metros in the Midwest. Yardi says strong search interest is reshaping demand even as construction pipelines remain larger than expected through 2026.
