Year-to-date apartment demand in 2026 is the third highest in history, behind only 2021 and 2024.
Apartment supply is leveling off (at nearly half the peak rates of earlier this decade), and demand now exceeds supply again, pushing down vacancy rates for the first time in nearly 5 years.
Rents are starting to slowly regain some momentum, and because of the Fed’s commitments to higher rates, it’s unlikely we’ll see apartment construction starts re-accelerate any time soon.
Source: Jay Parsons
