Multifamily Monthly Rent Decline Reaches Nearly 3 Years, Results Vary by Unit
It's been years since many multifamily landlords have been able to raise rents. The extended declines have been worse, depending on the unit type
While monthly fluctuations continue to reflect seasonal leasing dynamics, sustained increases in rental supply remain the dominant force shaping pricing trends nationwide.
Overall, median asking rents fell 1.7% year-over-year to $1,673 in April or a $29 decline, according to data from Realtor.com, tracking the 50 largest metropolitan areas.
Despite continued annual softness, rents remain 17.9% above April 2019 pre-pandemic levels. Yet, they are 5.2% below the August 2022 peak, reflecting a gradual normalization from pandemic-era highs.
The downtrend extended across unit types in April. Two-bedroom rents declined 1.9% year-over-year to $1,862, marking 35 consecutive months of decreases. One-bedroom rents fell 1.6% to $1,565, while studio rents dropped 1.9% to $1,408, extending the streak of declines to 32 months. Additionally, 0-2 bedrooms dropped for the 33rd consecutive month.
The downward pressure in rents is largely due to elevated multifamily supply. In Q1 2026, an average of 684,000 multifamily units were under construction, down from 765,000 in Q1 2025 and a peak of 971,000 in Q1 2024. While the pipeline is gradually unwinding, it remains historically elevated.
Completions in Q1 2026 totaled a seasonally adjusted annual rate of 470,000 units. Although this is below recent peaks similar to construction, it remains approximately 23% above the 2017–2019 average. Notably, multifamily starts re-accelerated in Q1, rising above prior-year levels and exceeding pre-pandemic benchmarks by more than 20%.
All four major regions posted year-over-year declines in units under construction in Q1 2026. The West saw the steepest contraction at -14.7%, followed by the South (-11.1%), Northeast (-7.1%) and Midwest (-5.4%). Despite this moderation, most regions remain above pre-pandemic construction levels, with the exception of the West, which is now below its historical baseline.
The Northeast stands out with its 42.1% year-over-year increase in completions. This has contributed to rent declines in markets, including Boston and Philadelphia, while New York City remains slightly positive due to tighter conditions.
By contrast, the West is showing early signs of future supply tightening. Starts in the region fell to their lowest first-quarter level since at least 2017, suggesting a more constrained delivery pipeline ahead, according to the report.
Source: GlobeSt/ALM