Apartments.com Upgrades U.S. Multifamily Growth Forecast
Key Highlights
- ➤Q4 2026 rent growth forecast held at 1.4%, up 50 basis points
- ➤Q4 2027 rent growth forecast raised to 2.6% from 1.9%
- ➤National multifamily vacancy projected at 7.9% through 2026, then 7.5% by end-2027
- ➤Demand exceeded expectations as declining deliveries accelerate excess-inventory absorption
Expert Statements
Grant Montgomery, National director of multifamily analytics at CoStar Group
“The higher rent growth outlook reflects the substantial progress made this year in absorbing excess inventory accumulated during 2024 and 2025.”
Grant Montgomery, National director of multifamily analytics at CoStar Group
“Demand has exceeded expectations while the number of new project deliveries has continued to decline, reducing vacancy faster than anticipated.”
Grant Montgomery, National director of multifamily analytics at CoStar Group
“The risks to the forecast appear balanced.”
Grant Montgomery, National director of multifamily analytics at CoStar Group
“Renter demand has remained resilient despite slower employment growth, but the outlook depends on the labor market remaining broadly stable.”
Grant Montgomery, National director of multifamily analytics at CoStar Group
“A shift from weak hiring toward more meaningful job losses could slow household formation and lower apartment demand.”
Grant Montgomery, National director of multifamily analytics at CoStar Group
“Reduced renter purchasing power due to persistent inflationary pressures could also lead some renter households to choose less expensive units, retain roommates, or delay forming new households, which would also reduce demand.”
The U.S. multifamily forecast has been modestly upgraded, according to Apartments.com , an industry-leading online marketplace of CoStar Group, Inc. (NASDAQ: CSGP).
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