January advertised rent gain sparks optimism; supply absorption challenges remain
SANTA BARBARA, Calif., Feb. 10, 2026 – U.S. multifamily rents rose in January 2026, besting December’s average by $3 and offering hope that “the worst of the seasonal softness is behind us,” according to a new report from Yardi® Matrix.
The average advertised rent reached $1,741 in January, a welcome change for multifamily property operators after five consecutive months of decline. However, the market is delivering “mixed signals on the pace of rent growth heading into the critical spring leasing season,” Yardi Matrix experts note, with supply pressures likely to limit rent growth.
Some major Sun Belt markets are still struggling to absorb apartment deliveries that arose from pandemic-driven demographic shifts. Meanwhile, the demand outlook remains uncertain, with faltering consumer confidence that could slow renter household formation countering an expensive for-sale housing market that favors multifamily demand.
As a result, it may be “difficult to achieve gains in overall advertised rents if the people renting workforce apartments don’t have steadily increasing incomes,” according to Yardi Matrix, which projects that advertised asking rents will grow by an average of 0.5% in 2026, 1% in 2027 and 2.3% in 2028.
With new construction starts remaining resilient, Yardi Matrix increased its forecast for multifamily completions by 6.4%, 8.1% and 8.9% in 2026, 2027 and 2028, respectively. More than 1.3 million units of market rate, affordable, senior and single family rental housing are projected to be delivered in that timespan.
Get more insights on the prospects for rent growth, supply absorption trends, the single-family build-to-rent segment and more in the Yardi Matrix National Multifamily Report for January 2026. The Yardi Matrix Multifamily Rent Forecast, an examination of the labor market, inflation and other factors, is available for download, as is the Yardi Matrix Q1 2026 Multifamily Supply Forecast.
Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, single-family rentals/ build to rent, affordable housing, student housing, self storage, office, industrial, retail and vacant land property types. Email [email protected], call (480) 663-1149 or visit yardimatrix.com to learn more.
About Yardi
Yardi® develops industry-leading software for all types and sizes of real estate companies across the world. With more than 10,000 employees, Yardi is working with our clients to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.
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