MARKET SNAPSHOT

National Q2 2026

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AVERAGE RENT

$1,727 Q2 2026

OCCUPANCY RATE

93.2% Q2 2026

NET ABSORPTION

261,257

ANNUAL RENT CHANGE

0.1% Q2 2026

ANNUAL OCCUPANCY CHANGE

-40 BPS

UNIT COMPLETIONS

218,245

KEY TAKEAWAYS

Net absorption reached approximately 156,000 units in Q2, exceeding new completions by more than 42,000 units, the widest quarterly demand-supply gap since the pandemic. The improvement was broad-based across product classes, with Class C returning to positive absorption for the first time in two years.

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The construction pipeline continued to contract sharply, with starts falling to a decade low and the pipeline dropping to roughly 566,000 units, less than half the 2023 peak. Full-year deliveries are on pace to hit the lowest level since 2021, setting up a meaningfully tighter supply environment.

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Following four consecutive quarters of decline, both occupancy and rent growth turned positive this quarter. The national occupancy rate rose to 93.2%, while average effective rents increased 0.1% year-over-year, the first positive annual reading since early 2025.

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MARKET OUTLOOK

The macroeconomic backdrop is showing signs of stabilization. A pause in Middle East military action has helped energy prices retreat from their peak, and the labor market has firmed considerably after last year’s weakness, with unemployment now at its lowest level in a year...

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