Author: Multifamily News

Multifamily Sales Fall Significantly In 2026

U.S. apartment transactions plummeted during the first quarter 2026, following three consecutive quarters of gains. Both the number of properties traded, and the dollar volume of transactions fell substantially during the quarter.

Overall sales volumes were 42% below the fourth quarter 2025 level, while the number of properties traded dropped 33% during the first quarter. In addition, recent activity was well below the $55 billion quarterly average over the past five years.

Cap rates for apartment transactions occurring in first quarter 2026 averaged 5.75%, well above the pandemic-era low of 4.64% from second quarter 2022.

Source: RealPage

Multifamily Concessions Reach New Highs

The average discount was 10.8% in March, which equates to six weeks free on a 12-month lease. The number of units offering a concession rose to 16.9%.

Percentage utilizing concessions:

  • Class A (14.5%)
  • Class B (15.0%)
  • Class C (21.5%)

Average discount:

  • Class A (11.1%)
  • Class B (10.6%)
  • Class C (10.8%)

Geographic concession usage:

  • South (21.2%)
  • West (16.4%)
  • Northeast (12.6%) 
  • Midwest (10.2%)

Source: RealPage

Commercial Property Price Index Shows Recovery While Multifamily Treads Water

U.S. commercial property prices posted their strongest annual gain since late 2022, with the RCA CPPI US National All Property Index rising 2.1%.

On a quarter-over-quarter basis, the index rose 1.1%, suggesting a faster annualized pace of growth of 4.7%.

Apartment prices were flat from a year earlier in the first quarter, ending a stretch of annual declines that lasted more than three years. Apartment prices rose 0.3% from the fourth quarter of 2025, suggesting an annualized rate of growth of 1.4%.

The Federal Reserve’s data shows a similar path for multifamily prices:

Source: MSCI