Multifamily Rent Growth Update: August 2026

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This analysis explores multifamily rent growth trends across the US using the Zillow Observed Rent Index (ZORI). All figures are seasonally adjusted and smoothed. Data are updated through July 2026.

National Rent Growth Trends

National multifamily rent growth accelerated again in July, with both annual and short-term measures reaching their strongest levels in more than a year.

National rents increased 1.8% year-over-year in July, up from 1.5% in June and 1.2% in May. The latest reading marks the fastest annual pace since May 2025 and extends a four-month run of accelerating growth following the March low.

Short-term momentum strengthened even more sharply. Annualized month-over-month rent growth reached 4.0% in July, up from 3.4% in June and 2.7% in May. That was the strongest monthly annualized pace since March 2023. Unlike earlier in the year, when improving monthly momentum was only beginning to suggest that conditions were stabilizing, the recent acceleration is now clearly filtering through to the annual growth rate as well.

Market breadth also continued to improve. In July, 73.4% of US metro areas recorded month-over-month rent gains, up from 72.3% in June and the highest share since September 2025. Meanwhile, 88.8% of metros posted year-over-year increases, up from 87.4% in June and also the strongest reading since September 2025.

Overall, the July data point to a rental market that is moving beyond stabilization and into a period of modest reacceleration. Rent growth remains moderate by historical standards, but both the pace of growth and the share of markets participating have strengthened consistently in recent months. The national market is still balancing rather than fully balanced, but the direction of travel has become increasingly constructive.

Metro-Level Performance

Metro-level performance remained highly uneven in July, with the strongest annual rent growth concentrated in Northern California, parts of the Midwest, and several Northeast markets.

San Francisco remained the clear national leader, with annual rent growth accelerating to 10.3% in July. Toledo and San Jose followed at 7.3%, while Akron posted 6.6% growth and Virginia Beach 6.5%.

Top 5 Markets for Annual Multifamily Rent Growth through July 2026

San Francisco, CA: +10.3%

Toledo, OH: +7.3%

San Jose, CA: +7.3%

Akron, OH: +6.6%

Virginia Beach, VA: +6.5%

At the other end of the spectrum, several familiar Sun Belt and Mountain West markets remained under pressure on a year-over-year basis.

Bottom 5 Markets for Annual Multifamily Rent Growth through July 2026

North Port, FL: −3.8%

San Antonio, TX: −3.2%

Cape Coral, FL: −3.1%

Denver, CO: −1.9%

Austin, TX: −1.8%

The monthly data, however, show a more constructive near-term picture than the annual rankings alone suggest. Several markets that remain negative year-over-year posted positive monthly gains in July, including Austin, Raleigh, Phoenix, Tampa, Denver, and Charlotte. That suggests some of the weakest markets are beginning to stabilize even though their annual readings continue to reflect earlier softness.

Short-term momentum was strongest in San Francisco, where rents increased 1.6% during the month. Toledo followed at 1.3%, while Augusta rose 1.2%, San Jose 1.1%, and Boise 0.9%.

Top 5 Markets for Monthly Multifamily Rent Growth through July 2026

San Francisco, CA: +1.6%

Toledo, OH: +1.3%

Augusta, GA: +1.2%

San Jose, CA: +1.1%

Boise City, ID: +0.9%

Bottom 5 Markets for Monthly Multifamily Rent Growth through July 2026

Scranton, PA: −0.4%

Greensboro, NC: −0.2%

Worcester, MA: −0.1%

Louisville, KY: −0.1%

Stockton, CA: −0.1%

The geographic divide remains pronounced, but it is becoming more nuanced. Strong rent growth continues across Northern California and many Midwest and Northeast markets, while several Sun Belt metros still rank among the weakest annually. At the same time, the improvement in monthly readings across a number of those lagging markets suggests the gap between current annual performance and recent momentum is beginning to widen.

San Francisco stands out as the clearest example of an unusually tight local market. The metro’s 10.3% annual rent growth in July is broadly consistent with other recent market measures showing sharply rising rents amid strong demand and a comparatively thin development pipeline. That combination has helped push San Francisco well ahead of every other major US market.

The Bottom Line

The July data provide the clearest evidence yet that multifamily rent growth is reaccelerating after an extended cooling period. Annual growth has now strengthened for four consecutive months, short-term momentum is at its strongest level since early 2023, and a larger share of metros are participating in the improvement.

Even so, the recovery remains highly uneven. Market-level supply conditions continue to play a major role in determining outcomes, and several Sun Belt metros remain negative on a year-over-year basis. But the fact that many of those same markets are now posting positive monthly growth suggests that the adjustment is progressing. The national apartment market is not yet fully balanced, but it is moving more decisively in that direction.

Appendix: Data Table