U.S. Apartment Transactions Plummet in 2026’s 1st Quarter After Three Quarters of Upward Momentum

U.S. apartment transactions plummeted during 1st 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.

The five largest apartment transactions during the first three months of the year traded for roughly $175 million to $220 million. The composition of those transactions was quite different than what has been seen historically. Two of the five largest transactions took place outside of major U.S. markets.

Roughly 1,450 apartment properties changed hands at a value of $32 billion during 1st quarter 2026, according to MSCI Real Capital Analytics. Overall sales volumes were 42% below the 4th quarter 2025 level, while the number of properties traded dropped 33% during 1st quarter. In addition, recent activity was well below the $55 billion quarterly average over the past five years.

The average price per unit in 1st quarter remained high at $204,061, registering above $200,000 for 17 of the past 19 consecutive quarters. Prior to 2021, the per-unit pricing never exceeded that threshold and averaged roughly $151,000 from 2015 to 2019.

Meanwhile, cap rates for apartment transactions occurring in 1st quarter 2026 averaged 5.75%, well above the pandemic-era low of 4.64% from 2nd quarter 2022. Though apartment cap rates have remained above 5.5% for over two years, they are by far the lowest among major property types, keeping the asset class an attractive commercial real estate investment.

On an annual basis, transactions in the year-ending 1st quarter 2026 totaled nearly $170.4 billion with 7,256 properties trading hands. That total sales volume was up 6% from the year-earlier level, while the number of properties traded was up 14%. Looking back over the past few years, sales dipped in calendar 2020 due to the pandemic, when about 7,300 apartment communities sold for $148.2 billion. That was well below the volume from 2019, when nearly 9,100 properties traded hands for $195 billion. In 2021, transactions jumped due to pent up demand following the onset of the pandemic, with roughly 13,500 properties trading hands at a value of roughly $359.3 billion, nearly double the 2020 level on both accounts. However, 2023 also saw a big pullback in transactions, when about 6,100 properties traded for nearly $120.5 billion.

Among the five largest single-asset market-rate apartment transactions during 1st quarter 2026, the Northeast and West regions each had two, while the Midwest had one. Both transactions in the West region were in the Bay Area. What stands out is the transaction in the Midwest and a transaction in the Northeast. Those two trades were not in major markets (RealPage has defined 50 major markets, each with more than 110,000 units).

The large Midwest trade was in Fort Wayne, IN, a tertiary market (RealPage has defined 50 tertiary markets, each with roughly 24,000 to 40,000 units). There has been only one other transaction in a tertiary market that closed for more than $210 million over the past 25 years: a property in Boulder, CO closed for $252 million in 2015. The only other transaction outside a major market that closed for more than $210 million over the past 25 years was the sale of a property in a secondary market (RealPage has defined 50 secondary markets, each with roughly 41,000 to 110,000 units): a property in Oxnard that sold for $240 million in 2021. The other large transaction outside a major market during the first three months of 2026 was in the Northeast. That took place in Nassau County-Suffolk County, NY, a secondary market.

Here’s a look at the nation’s five largest apartment transactions during 1st quarter 2026.

Twenty20

The largest single-asset market-rate apartment transaction in the nation during 2026’s 1st quarter was in the Boston market. In February, Chicago-based Mesirow Financial purchased Twenty20, a 355‑unit luxury apartment community on Child Street in Cambridge’s North Point neighborhood. The property traded for $218 million, or roughly $614,100 per unit. Developed in 2015, the 21-story building features high‑end amenities including a rooftop terrace, fitness center, coworking spaces and ground‑floor retail. The property was sold by PGIM Real Estate, which previously purchased the property in 2015 from Canyon Capital Realty Advisors for $197 million. Twenty20 is part of the Cambridge Crossing mixed-use development which has more than two million square feet of life science space.

Canterbury Green

In January, the 1,998-unit Canterbury Green apartment community in Fort Wayne, IN traded hands for about $209 million, the second-largest apartment transaction in the U.S. during 1st quarter 2026 and the largest single-asset multifamily transaction ever completed in the state in Indiana. The purchase price equated to roughly $104,500 per door. Pennsylvania-based Morgan Properties acquired the garden-style complex from a joint venture between New York City based Osso Capital and Philadelphia-based GoldOller Real Estate Investments. The community was built from 1969 to 1978 on 195 acres off Canterbury Boulevard in the Northeast South Wayne submarket, adjacent to Purdue University Fort Wayne. The property, which previously traded in 2014 for $85.5 million, features an 8-hole golf course, several swimming pools, a fitness center, coworking space, a theater room, an on-site restaurant and lounge, plus racquetball and tennis courts.

The Arboretum

In February, Illinois-based The Inland Real Estate Group of Companies bought The Arboretum apartment community in Farmingville, NY on Long Island for approximately $190 million. That was the third largest apartment transaction in the nation during the first three months of 2026. The garden-style community with 292 units traded for roughly $788,400 per unit. The property sits on 62 acres at Horseblock Road and Maple Lane in the East Suffolk submarket within the Nassau County-Suffolk County, NY market. The seller, New York-based BRP Companies, completed construction on the development in 2025. Amenities include a fitness center, yoga rooms, a resort-style pool with cabanas, a clubhouse, tennis, pickleball and bocce courts, a putting green, playground, dog run with wash stations, and a business center with conference rooms. About 10% or 30 units are reserved for workforce housing.

Sofia

The nation’s fourth-largest apartment transaction during 1st quarter 2026 was the sale of an apartment complex in the San Jose market. In January, San Mateo-based Acacia Capital Corp. purchased the Sofia for over $183 million. San Ramon-based SummerHill Apartment Communities, the developer, sold the 287-unit property for about $637,600 per unit. The seven-story apartment building at 3580 Ryder Pl. within the Santa Clara submarket was built in 2024. Sofia apartments feature three rooftop decks, a fitness center, game room, pool, hot tub, bike storage and a self-serve store.

Carmel Rincon

A joint venture between San Francisco-based Tidewater Capital and Dallas-based Canyon Partners recently acquired the 320-unit Camel Rincon apartment community in San Franscisco. San Francisco-based Carmel Partners purchased the property in 2010 for $110 and sold the development in March 2026 for $174 million, or roughly $543,800 per unit. This was the fifth-largest apartment transaction during 1st quarter 2026. The 22-story building on Howard Street was built in 2012 and was among the first high-rises built as part of a redevelopment of the Rincon Hill neighborhood which transformed the area from an industrial to residential area. Amenities include a resident lounge, concierge services, business center, conference room, on-site laundry center, underground parking garage, roof-top terraces and patios. The community has been rebranded The Towers at Rincon.