Tepid as it may be, 2026’s seasonal activity still dragged advertised rent growth above zero in May.
Highlights:
- The average U.S. advertised asking rent stood at $1,767 in May, up 0.2% annually.
- Seasonality continued supporting monthly rent growth, which clocked in at 0.3%.
- Multifamily investment volume decreased 10.7% year-over-year during 2026’s first five months.
- SFR-BTR average advertised rents registered a 0.1% decrease year-over-year to $2,224 in May.
Although on par with the past four years, 2026’s seasonal bump remains below pre-pandemic values
The national multifamily average advertised asking rent climbed $6 to $1,767 in May, marking a barely positive rate of 0.2% year-over-year. Seasonal gains stood at 1% between January and May, a figure on par with the average dating back 4 years, yet below the pre-pandemic index of roughly 2%. Annual growth continued coalescing around Gateway and Midwest markets, with San Francisco (4.5% year-over-year) in the lead, followed by Chicago (3.5%) and New York City (3.3%). Markets that continue absorbing high levels of new supply found themselves in the negative, including Austin (-3.7%), Phoenix (-3.1%) and Denver (-2.9%).
Average advertised rents ticked up for two consecutive months, with the latest increase clocking in at 0.3% in May. The growth was felt nearly all throughout the U.S., including many high-supply markets, such as Austin (0.4%) and Denver (0.8%). New York City (1.2%), Baltimore and Charlotte (0.9% each) experienced the strongest increases. Lifestyle properties drove much of the gains, with such properties witnessing rents going up 0.4%, but the Renter-by-Necessity product wasn’t far behind, at just 0.3%.
The national average occupancy rate was at 94.1 percent in April, marking a 200-basis point drop since its cyclical peak in 2022 and also the lowest reading since 2013. Elevated levels of supply partly drove the decrease in occupancy, though economic and labor market conditions affected the rate as well. At a market level, San Francisco stood as an outlier, being the sole metro to post occupancy gains year-over-year, albeit at a modest 0.2%. All the other markets were in the red, with some of the steepest drops registered in Tampa (-1.4%), Las Vegas and Houston (-1.1% each).
Sellers remain on the sidelines amid mounting dry powder
Some of the factors depressing occupancy rates affected investment prospects across the sector. Deal volume during the first five months of 2026 clocked in at $26.6 billion, down 10.7% year-over-year. Despite plenty of available capital—Colliers reported $174 billion were raised on a two-year basis through March 2026 for U.S. multifamily acquisitions—deals did not close. That’s likely due to sellers waiting for the bid-ask gap to moderate and allow higher prices to be met by potential buyers through cheaper debt as mortgage rates continue declining.
The single-family build-to-rent rates increased $8 to $2,224 in May, marking a slight 0.1% decline year-over-year. Much like the multifamily sector, BTR performance began splitting geographically. Midwest metros posted stronger rent growth, while many Sun Belt markets faced contractions due to softening demand and high supply. Top rent growth emerged in Chicago (7.2%) and South Dakota (5.3%), followed by Columbus (4.5%), while some of the weakest rate movement was recorded in Austin (-3.4%), Phoenix and Denver (-3.2% each), as well as Greenville (-3.1%) and Dallas (-2.7%). The performance gap is further emphasized by the spread between the best and worst performing markets, which for BTR was 11%, while the multifamily difference stood at just 8%.
Read the full Yardi Matrix Multifamily National Market Report: May 2026.
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