Apartment demand topped expectations in the first half of 2026, with net apartment household formation topping 250,000 units, according to CoStar and Real Page. That’s among the highest absorption starts in history, and it’s better than any year before 2020.
With supply dropping off concurrently, absorption topped supply by about 100,000 units so far this year, reversing a long trend of ultra-high supply topping strong demand. That triggered occupancy growth of 20 basis points in the first quarter of 2026, which was the best for any quarter since 2021.
The absorption trends so far this year are a possible sign that at least one segment of consumers is faring better than generally perceived, especially when these new renters are spending only 21-22% of income toward rent.
Source: Jay Parsons
Multifamily Market News 