The rental housing market has entered a new phase in 2026. The wave of apartment construction that increased competition and restrained rent growth in recent years is beginning to recede, while elevated homeownership costs continue to support rental demand.
Nationally, rents are rising again—but performance varies widely by property type and location. Markets that absorbed substantial new apartment supply continue to offer renters greater negotiating power, while supply-constrained markets are experiencing stronger rent growth. Single-family rentals are generally outperforming apartments, although rent gains remain moderate by historical standards.
For investors, this is no longer a simple story of declining multifamily rents and resilient single-family rentals. Successful underwriting requires a property-level understanding of supply, demand, concessions, operating expenses, and local economic conditions.
According to Zillow, the typical U.S. asking rent reached $1,962 in July 2026, representing a 2.3% increase from the previous year and the fastest annual growth rate in more than a year.
Single-family asking rents increased 3.0% annually to $2,314, while multifamily asking rents rose 1.7% to $1,786. Multifamily rents were higher than a year earlier in 34 of the 50 largest metropolitan areas, while single-family rents increased across all of the largest metros tracked by Zillow. Zillow Research
These figures do not mean every rental property is experiencing stronger performance. National averages can conceal major differences among metropolitan areas, neighborhoods, property classes, and individual assets.
The U.S. Census Bureau reported a national rental vacancy rate of 7.3% in the second quarter of 2026. That rate was essentially unchanged from the first quarter and not statistically different from the 7.0% recorded one year earlier. U.S. Census Bureau
A historically large number of apartment deliveries gave renters more choices and increased competition among multifamily operators. Although the development pipeline is beginning to narrow, recently completed units are still being leased in many markets.
The impact is most noticeable in metropolitan areas where construction was concentrated. In these markets, owners may face greater competition, longer lease-up periods, or more pressure to provide incentives.
A slowdown in new construction could eventually help restore balance, but the timing will vary by market. Investors should evaluate properties based on local deliveries, permits, units under construction, and expected absorption—not national supply statistics alone.
Asking rent does not always reflect the income a property actually collects. Owners may advertise one rental rate while offering free rent, waived fees, reduced deposits, or other incentives.
In July 2026, 39.8% of rental listings on Zillow offered a concession, compared with 35.9% a year earlier. Concession rates exceeded 65% in several supply-heavy markets, including Charlotte, Denver, Dallas, Raleigh, and Salt Lake City. Zillow Research
For investors, this makes effective rent particularly important. Underwriting should account for concessions, vacancy, collection losses, lease-renewal activity, and the time required to stabilize newly renovated or recently acquired units.
Multifamily rent growth is not moving uniformly across the country. In July, Zillow reported strong annual growth in markets including San Francisco, San Jose, Virginia Beach, Chicago, and Milwaukee. Other markets—including Denver, Austin, San Antonio, and Tampa—recorded annual declines in overall asking rents.
These differences may reflect:
A metropolitan area can also contain both strong and weak submarkets. Investors should compare a property with genuinely competitive rentals rather than rely only on metro-level averages.
Elevated home prices, mortgage rates, insurance premiums, property taxes, and maintenance costs continue to make purchasing a home difficult for many households.
Zillow estimated that a household needed annual income of approximately $78,500 to afford the typical U.S. rental in July 2026, compared with nearly $99,800 to afford a typical mortgage payment. That difference helps keep prospective buyers in the rental market longer. Zillow Research
This affordability gap supports rental demand, but it does not guarantee that any particular property will achieve its projected rent or occupancy.
Single-family rentals can offer features that may be difficult to find in an apartment, including:
These characteristics can appeal to households that want more space or flexibility but are not ready or able to purchase a home.
Single-family rentals generally command higher absolute rents than apartments, however. Investors should evaluate affordability relative to household income and competing properties within the immediate area.
Single-family rent growth has remained positive nationally, but it has also slowed from the rapid increases experienced earlier in the decade.
Cotality reported that its Single-Family Rent Index increased 1.3% year over year in March 2026. Sixteen of the 50 largest metropolitan areas in its analysis recorded declines, with much of that weakness concentrated in Florida. The report illustrates how different data sets and methodologies can produce different national figures while confirming substantial regional variation. Cotality Single-Family Rent Index
Investors should therefore avoid treating single-family rentals as uniformly insulated from slower rent growth, concessions, turnover, or rising expenses.
Neither property type is inherently superior. Each offers a different balance of scale, diversification, liquidity, management requirements, and market exposure.
Potential advantages may include:
Potential challenges may include:
Potential advantages may include:
Potential challenges may include:
Current conditions favor disciplined, market-specific underwriting. Before acquiring or refinancing a rental property, investors should consider:
Investors should also stress-test each transaction. A conservative analysis may model slower leasing, flat or declining rents, higher operating costs, an extended renovation schedule, or less favorable refinancing terms.
The rental market in 2026 is gradually tightening as the recent apartment construction wave recedes, but the recovery is uneven. Multifamily rents are increasing nationally, even as concessions and supply continue to pressure certain markets. Single-family rentals are recording somewhat stronger asking-rent growth, supported partly by the high cost of homeownership and renter demand for additional space.
Neither sector is immune to market risk. Property performance will depend on local supply, renter affordability, asset condition, operating efficiency, financing costs, and acquisition basis.
CoreVest provides business-purpose financing solutions for residential real estate investors, including financing for stabilized rental properties, multifamily investments, renovation projects, and other eligible investment strategies. Contact our team to discuss your property, portfolio, financing needs, and investment objectives.
This article is provided for informational purposes only and does not constitute legal, tax, investment, financial, real estate, market, or lending advice. Rental performance, occupancy, property values, financing terms, and operating expenses vary by market, property, and transaction. Market data reflects reported or forecast conditions and does not guarantee future results. CoreVest loans are for business purposes only and are subject to underwriting, credit approval, property eligibility, program requirements, and applicable terms and conditions.
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