By Erik Sherman via GlobeSt.com <— Click here for complete article
The apartment market entered the fall leasing season with a modest national rent decline, but the underlying data point to a market that may be gaining firmer footing after a prolonged period of heavy new supply.
National apartment rents fell 0.08% in September to an average of $1,752, down from August’s revised $1,753, according to Apartments.com. The decline ended nine consecutive months of flat or positive monthly rent changes dating to the second half of 2025.
For multifamily investors, however, the more notable development may be the relative size of the pullback. September rent declines are typical as the peak leasing season winds down, but this year’s 0.08% decrease was less severe than the 0.2% declines recorded in September 2024 and September 2025.
At the same time, annual rent growth strengthened. Year-over-year growth reached 1.5% in September, up from 1.3% in August and 1% a year earlier. Apartments.com also revised August’s originally reported 0.03% monthly decline upward to flat rent growth.
Construction Slowdown Could Ease Pressure
The modest September decline comes as the multifamily sector works through the excess inventory created by historically high construction and delivery volumes in prior years. A significant reduction in new construction and deliveries may be beginning to ease pricing pressure in some markets.
The data suggest that many markets have moved beyond the most intense effects of the recent supply wave, although recovery remains uneven. Markets with substantial inventory overhangs continue to face pressure, while more supply-constrained markets are posting stronger rent growth.
That contrast is especially clear in regional results. The South, where much of the excess apartment inventory accumulated, recorded 0.2% annual rent growth in September. While that was well below the gains reported in other regions, it marked the first positive year-over-year increase in the South since September 2025.
Regional Results Remain Uneven
Monthly rent changes were negative across every major region in September. The Mountain region posted the largest monthly decline at 0.3%, followed by the Pacific at 0.08% and the South at 0.02%. The Northeast and Midwest recorded declines of 0.7% and 0.6%, respectively.
On an annual basis, the Pacific led the major regions with 2.4% rent growth. The Midwest followed at 2.3%, and the Northeast rose 2.2%.
The West remained the only region with negative annual rent growth, declining 0.1%. The Mountain region had reduced its annual rent declines over the summer, but those declines widened again in September. Supply-heavy Mountain metros continue to face more pressure than Pacific markets, where housing supply is more constrained.
Metro Performance Highlights The Divide
The number of markets recording monthly rent gains narrowed in September. Of the 50 largest markets, eight posted month-over-month increases, seven were unchanged and 35 recorded declines.
Indianapolis led monthly rent growth with a 1% increase, followed by Louisville at 0.8% and Orange County at 0.2%. At the other end of the ranking, Salt Lake City posted a 0.8% monthly decline. San Antonio, Columbus, Seattle, Raleigh and Boston each recorded declines of 0.5%.
Annual performance showed an even sharper divide between stronger demand markets and metros still coping with elevated supply. San Francisco posted 12.8% annual rent growth, followed by San Jose at 8.2%, Norfolk at 5.8% and the East Bay at 5.4%.
Markets with the largest supply-demand imbalances remained under pressure. San Antonio recorded a 1.8% annual rent decline, while Las Vegas fell 1.3%. Denver and Houston each posted annual declines of 1%.
The September figures do not signal a broad-based recovery in apartment rent growth. They do, however, indicate that the national market may be moving past the steepest portion of the supply-driven slowdown. For investors, the outlook remains highly market-specific: metros with constrained supply and durable demand are gaining ground, while markets carrying a larger inventory overhang are likely to see rent growth remain muted.
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