Rental Housing Weekly Briefing: July 27–31, 2026

Title slide with modern apartment building: Rental Housing Weekly Briefing, July 20-24, 2026, Chandan Economics.

This week’s Rental Housing Weekly Briefing examines NMHC’s July 2026 Quarterly Survey of Apartment Conditions, which shows apartment markets tightening even as sales activity and financing conditions softened, alongside the latest Chandan Economics–RentRedi data showing that mom-and-pop rent collections remain broadly stable despite modest summer weakening, and a Chandan Economics–Arbor Realty Trust analysis of US Census Bureau data showing that new multifamily supply is increasingly concentrated in larger, lower-rise properties.

LAST WEEK in RENTAL HOUSING

NMHC Quarterly Survey of Apartment Conditions

Apartment market conditions improved in July, according to NMHC’s latest Quarterly Survey of Apartment Conditions. The Market Tightness Index rose to 57 from 49 in April, moving above 50 for the first time since July 2025. On balance, that indicates apartment markets were tightening rather than loosening.
The underlying responses were constructive but still measured. Twenty-nine percent of respondents reported tighter conditions than three months earlier, compared with 15% reporting looser conditions, while 55% said conditions were broadly unchanged.
Transaction activity softened modestly. The Sales Volume Index declined to 46 from 52, with 19% reporting higher sales volume and 27% reporting lower volume. Nearly half of respondents said transaction activity was unchanged from the prior quarter.
Financing conditions also weakened at the margin. The Equity Financing Index fell to 44 from 49, while the Debt Financing Index declined to 46 from 51. Most respondents still reported little change, but both readings below 50 suggest that equity availability and borrowing conditions became somewhat less favorable during the quarter.

Independent Landlord Rental Performance Report via Chandan Economics & RentRedi

On-time rent payments at independently operated properties edged down to 83.2% in July, from 83.4% in June. The decline extends the modest softening seen in early summer, but remains broadly consistent with seasonal patterns rather than a renewed deterioration in collections.
Year-over-year performance remained positive. On-time collections were 53 basis points above July 2025, extending the broader improvement from the sharp annual declines recorded in the second half of last year. The latest data continue to point to stabilization rather than full normalization.
Overall payment resolution remains comparatively firm. The forecast full-payment rate for July was 95.4%, suggesting that most missed on-time payments are still being cured later in the collection cycle. However, the latest observed late-payment rate remained historically elevated at 11.8% in May, despite improving from 13.5% earlier this year.
Collection performance remained differentiated by property type. Two-to-four-family rentals led in July with an on-time payment rate of 83.8%, followed by single-family rentals at 83.4%, while multifamily properties remained the weakest segment at 81.7%.

Multifamily Completions Shift Toward Larger, Lower-Rise Properties

A new Chandan Economics–Arbor Realty Trust analysis of US Census Bureau data finds that multifamily completions moderated from historic highs in 2025. Total completions across properties with five or more units fell to 468,000 units, down from 591,000 in 2024. Even after the decline, completions in properties with at least 50 units remained above every annual level recorded before 2023.
The composition of new supply continued shifting toward larger properties. Buildings with at least 50 units accounted for 59.4% of completed multifamily units in 2025, up from 55.8% one year earlier and the second-highest share in 50 years. Larger projects may offer economies of scale as smaller developers face greater financing and project-risk barriers.
Larger has not necessarily meant taller. In 2025, 60.5% of completed multifamily units were in buildings with fewer than four floors, up from 56.6% in 2024. The persistence of larger, lower-rise development is consistent with the growing role of garden-style and suburban communities in expanding rental supply where high-rise construction may be less feasible or aligned with local demand.