Rent Growth Slows Nationally as New Supply Hits Market

National asking rents rose just 0.7% year-over-year in March, the slowest pace since 2010, as a wave of new multifamily deliveries continued to absorb renter demand. The Apartment List National Rent Report published April 10 placed the national median at $1,398 for a typical unit, down $3 from February after seasonal adjustment.

The headline figure masks substantial regional divergence. Sun Belt metros where builders delivered the most new supply are now recording rent declines. Austin, Texas led losses with rents down 3.7% year-over-year. Phoenix fell 3.3%, Atlanta 2.1%, and Jacksonville, Florida 1.9%. In contrast, Providence, Rhode Island led growth at 5.2%, followed by Hartford, Connecticut at 4.8%.

"Supply is the single largest factor shaping rent trajectories right now," said Igor Popov, chief economist at Apartment List. Popov said 458,000 multifamily units delivered nationally in 2025, the highest annual total since 1986. Deliveries concentrated in fast-growing metros, overwhelming demand in several Sun Belt markets.

RealPage data aligned with the Apartment List findings. The firm's March report showed same-store asking rents up 0.4% year-over-year, while effective rents after concessions fell 0.2%. Concession usage reached 34% of leases nationally, with concessions averaging 7.8 weeks of free rent in newly delivered Class A buildings.

The pipeline is now starting to shrink. Yardi Matrix reported that multifamily construction starts fell 23% in 2025 as financing costs tightened. Starts are projected to decline another 15% in 2026. Developers who secured construction financing in 2021 and 2022 completed deliveries through 2025; the 2026 delivery pipeline will be materially smaller than the peak year.

Renter behavior has shifted in response to the friendlier conditions. The Apartment List migration report found that renter move rates increased for the first time since 2021, with 29% of renters changing addresses in the 12 months ending February. Young adults aged 25 to 34 showed the largest gain, up from 31% to 35%.

Investor sentiment toward multifamily has begun to firm. Cap rates on stabilized Class A multifamily in major markets have stopped rising, according to CBRE's latest investor survey, plateauing around 5.25% in top-six markets. Transaction volume in the first quarter reached $31.2 billion, up 18% from the same quarter in 2025. MSCI Real Capital Analytics said it was the strongest first-quarter volume since 2022.