Multifamily Rent Growth Update: June 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 updated through May 2026.

National Rent Growth Trends

Multifamily rent growth remained subdued in May, but the latest data provide stronger evidence that market conditions are beginning to stabilize after an extended cooling period.

National rents rose 1.2% year-over-year in May, up from 1.0% in April. While annual rent growth remains well below the pace recorded earlier in the cycle, May marked the first meaningful acceleration in national rent growth since late 2024. Even so, rent growth remains near its slowest pace since early 2021, before post-pandemic rent growth accelerated.

Short-term momentum also improved. The annualized monthly rent growth rate increased to 1.7% in May, up from 1.0% in April and the strongest reading since October 2025. While national rent growth remains modest by historical standards, the improvement suggests that conditions may be stabilizing after more than a year of gradual deceleration.

Market breadth strengthened as well. In May, 70.0% of metros recorded month-over-month rent growth, up from 64.5% in April and the highest share since September 2025. Meanwhile, 86.4% of metros posted year-over-year rent gains, essentially unchanged from 86.5% in April. Together, these measures suggest that while rent growth remains subdued nationally, the market is no longer experiencing the broad-based deterioration observed through much of 2025.

Overall, the May data point to a rental market that remains soft but is showing increasingly convincing signs of stabilization. Annual rent growth remains historically modest, but both short-term momentum and market breadth improved meaningfully during the month. While conditions remain highly uneven across markets, the national trend appears more balanced than it did at the end of last year.

Metro-Level Performance

Performance remained highly uneven in May, with many of the strongest markets concentrated in the Midwest, Northeast, and select coastal metros. Meanwhile, several high-supply Sun Belt markets continued to experience outright rent declines, underscoring the increasingly localized nature of apartment market performance.

Top 5 Markets for Annual Multifamily Rent Growth through May 2026

San Francisco, CA: +6.7%

Urban Honolulu, HI: +6.2%

Akron, OH: +5.5%

Virginia Beach, VA: +5.5%

Toledo, OH: +5.4%

Bottom 5 Markets for Annual Multifamily Rent Growth through May 2026

North Port, FL: −5.7%

Cape Coral, FL: −5.1%

Austin, TX: −3.9%

San Antonio, TX: −3.5%

Denver, CO: −2.9%

Short-term rent growth was somewhat stronger in May, with gains becoming more broadly distributed across markets. Several of the strongest-performing metros on a monthly basis were also among the strongest annual performers, suggesting that momentum remains concentrated in many of the same markets that have led rent growth over the past year.

Top 5 Markets for Monthly Multifamily Rent Growth through May 2026

Fresno, CA: +1.0%

San Francisco, CA: +1.0%

Poughkeepsie, NY: +0.9%

Syracuse, NY: +0.8%

Boise City, ID: +0.7%

Bottom 5 Markets for Monthly Multifamily Rent Growth through May 2026

Knoxville, TN: −0.6%

Austin, TX: −0.4%

San Antonio, TX: −0.4%

Jackson, MS: −0.3%

North Port, FL: −0.3%

Taken together, the annual and monthly rankings suggest that the regional divide that has characterized the apartment market over the past year remains firmly in place. Strong rent growth continues across portions of the Midwest and Northeast, while several Florida and Texas metros remain under pressure from elevated supply levels. Coastal California has also continued to outperform, led by San Francisco and San Jose, where rents have benefited from stronger demand conditions and comparatively less supply pressure than many Sun Belt markets.

The Bottom Line

The May data suggest that multifamily rent growth remains soft, but the evidence for stabilization is becoming more convincing. National rent growth accelerated modestly on both a year-over-year and month-over-month basis, while the share of markets posting rent gains improved meaningfully. Taken together, these indicators suggest that the broad-based cooling that characterized much of 2025 may be beginning to ease.

That said, the market remains highly fragmented. Strong rent growth persists across portions of the Midwest, Northeast, and select coastal markets, while several high-supply Sun Belt metros continue to face downward pressure on rents. As a result, local market conditions remain far more important than national averages in determining performance.

Looking ahead, the most likely path remains one of gradual improvement rather than a sharp rebound. Rent growth remains well below historical norms, but the May data indicate that the market is becoming more balanced. If supply pressures continue to moderate and demand remains resilient, conditions should become incrementally more supportive over the second half of the year.

Appendix: Data Table