Apartment Market Turns a Corner as Supply Finally Exhales

The U.S. apartment market turned a corner in 3rd quarter, and the credit goes more to easing supply than to surging demand. After three straight years of above-average deliveries, the supply wave is receding. New market-rate completions peaked at nearly 588,000 units in 2024, far above the 10-year average of 363,000 units. Deliveries fell to about 403,000 units in 2025, and 2026 is on pace for roughly 314,000 units, marking the first year below the long-term average since 2022. Demand, meanwhile, never went away. Absorption is on track for about 376,000 units this year, pushing the demand-to-supply ratio into balance. That balance is showing up in pricing: month-over-month rent change in August and September held steady, a sharp contrast with the declines of the same months last year. Class B rents have returned to growth of about 1% , a sign the recovery is broadening beyond Class A stock. Still, the recovery is not uniform, nor is it guaranteed. Class C product remains under pressure, real wage growth is slipping as inflation returns, and a sharp drop in immigration could weigh on demand in 2027.

For more information on the state of U.S. apartment markets, including forecasts, watch the webcast Market Intelligence: U.S. 3Q26 Recap.