Apartment demand fell by 40,400 units in Q4 2025, bringing annual demand down to only 365,900 units. New supply also continued to decline, (89,400 in Q4 and 409,500 year-over-year), but it was not as rapid as the decline in demand.
Rent prices fell 1.7% in Q4. While it’s common for operators to cut rents in the slower leasing season, this latest decline was roughly twice as deep as the cuts the market has seen in 4th quarters during the past five years.
Over 23% of apartments were offering concessions as of Q4, and the average concession was 7%. As operators focus on filling units in the coming months, concession utilization could become even more prevalent, making true rent growth harder to realize until discounts burn off.
Source: RealPage
Multifamily Market News 