On The Market New 2025 & 2026 Rent Growth Prediction (A BIG Bounce Back?)
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May 22, 2025 The rental market is on the cusp of change, with predictions for a significant rent rebound by 2026. A surplus of multifamily units has led to current discounts and concessions for renters. Regions with surprising rent increases defy typical investment expectations, while single-family rentals are holding strong. As supply decreases and demand potentially rises, landlords could find themselves in a favorable position. It's a promising outlook that many investors may overlook, making now an interesting time to explore the rental landscape.
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Supply Glut Slows Rent Growth
- National rent growth has been flat or slightly negative recently due to a large supply glut in multifamily units.
- This oversupply has driven rents down as landlords compete and offer concessions to avoid vacancies.
Rising Vacancies Pressure Rents
- Vacancy rates have increased nationwide as too many new apartments flood the market.
- Higher vacancies force landlords to lower rents to avoid income loss from empty units.
Multifamily vs Single-Family Divergence
- Multifamily and single-family rental markets have different dynamics and performance paths.
- Multifamily faces oversupply nationally while single-family rentals remain in steadier demand and are less impacted by new construction.
