U.S. rental market conditions are gradually improving as year-over-year rent growth turned positive in October 2026 for the first time in more than three years, according to Apartment List's November National Rent Report. The national median rent reached $1,384, representing a 0.1% increase compared to October 2025, although rents declined 0.3% month over month as the market entered its seasonal slowdown.
Multifamily occupancy is also showing signs of recovery, with the national vacancy rate declining to 7.0% in October from its February peak of 7.3%. Slowing apartment construction is helping absorb excess inventory following the recent development boom. However, leasing conditions remain competitive, with units taking an average of 36 days to lease and 32% of properties offering concessions equivalent to at least one month of free rent.
Regional rental trends continue to vary. Sun Belt markets, including Austin, Phoenix, Denver, Tampa, and Charlotte, are seeing rent declines moderate as new supply slows and existing inventory is gradually absorbed. Austin, for example, recorded a 1.2% year-over-year rent decline in October, significantly narrower than its 6.2% decline in 2025. Meanwhile, San Francisco and San Jose are experiencing stronger rent growth, supported by demand from high-paying technology jobs.
For SFR, BTR, and multifamily operators, the improving figures suggest the rental market is moving toward more balanced conditions. While elevated concessions and longer leasing periods continue to create pricing pressure, declining vacancies and stabilizing rents point to improving fundamentals. Apartment List expects rent growth to remain positive into 2027, supported by resilient renter demand and rising homeownership costs that may encourage more households to remain in rental housing.
Source: Apartment List Research
