CBRE apartment data show 1% rent growth as supply slows

Apartment rents rose 1% year over year to an average $2,268 in the third quarter, according to CBRE's multifamily research. That is up 0.5% from the second quarter, while completions fell 11% from a year earlier to 84,300 units.

Net absorption in the quarter was 8,747 units, down from 42,166 a year earlier, and vacancy rose 40 basis points to 4.7%. Completions outpaced demand for the first time since the fourth quarter of 2025.

Family offices and fund selectors weighing apartment commitments get roughly $42.7 billion of third-quarter volume once the $69.6 billion Avalon Bay and Equity Residential merger is excluded, not $112.3 billion, CBRE said. The merger accounted for most of the 140% year-over-year increase in investment volume.

Rents were positive across the Midwest, Northeast and Pacific regions, and San Francisco recorded the largest year-over-year increase at 9.4%. CBRE's third-quarter office data, as Private Wealth Daily previously reported, showed completions down 76%. CBRE expects apartment absorption to keep falling in coming quarters as construction slows further.