Apartment rents rise 0.1%, first October gain since 2022

Apartment rents rose 0.1% in October from September, the first October increase since 2022, according to Yardi Matrix's Nov. 10 report. Year-over-year growth accelerated to 1.4%, which Yardi said was the highest in over three years, and 14 of its top 30 markets recorded rent gains.

Absorption cooled to about 245,000 units in the first half of 2026, down 27.5% year over year, Yardi said. Positive October growth was more common before the pandemic; the firm called the result "an encouraging sign of normalization." Third-quarter rents rose from the second quarter for the first time since 2022.

For owners and lenders setting rent growth assumptions, concessions are the gating number. Multifamily Dive reported that a high number of properties still in lease-up is keeping rent discounts elevated. "Concessions have to go away first, and then rents will grow after that," Marcie Williams, chief strategy officer at Bainbridge, told Multifamily Dive. "We've got strong occupancy, but we also have to meet the market demand."

Stabilized occupancy was 94.3% in October, flat on the month and down 0.2% year over year. Six of the top 30 markets posted annual occupancy gains, led by San Francisco at 0.7%; Columbus, Indianapolis and Las Vegas each fell 0.6%.

Rent-by-necessity rents and lifestyle rents both grew 1.3% year over year, against 1.1% for single-family build-to-rent, and rent-by-necessity occupancy of 96.9% ran ahead of lifestyle's 94.6%.

Yardi expects deliveries to decline further next year, which would leave room to absorb excess inventory and support rent growth if demand holds near its historical pace.