Fundamentals remain largely stable as the market continues to work through the recent supply wave, resulting in muted rent growth with occupancy drifting slightly lower.
Demand is expected to stay robust with annual absorptions remaining above 5,000 units in 2026, but has cooled from recent-cycle highs, which limits landlords’ pricing power and sustains concessions.
The supply outlook is improving as the pipeline shifts from expansion to contraction, as starts fell sharply in 2025 and completions are forecast to step down in 2026, which should allow supply to better align with demand and set up firmer fundamentals once the remaining backlog is absorbed.
