Apartment rents weaken further as war and job cuts weigh on demand

CNBC • April 1, 2026 • business

Key Points:

National median apartment rents increased by only 0.4% from February to March 2024, a smaller gain than the typical spring rise and down 1.7% year-over-year, marking the largest annual drop since 2017.
Rents have fallen 5.5% from their 2022 peak, driven by high vacancies at 7.3%, the highest rate since 2017, and an influx of over 600,000 new multifamily units added in 2024, the most since 1986.
Economic uncertainty from job cuts and inflation pressures, including geopolitical tensions, has dampened housing demand and stalled the expected rebound in rent growth seen last year.
Regional rent trends vary, with the Midwest seeing the strongest annual gains at 1.9%, while the South and Mountain regions experienced declines of 1.3% and 2.2%, respectively.
Apartment landlords are increasingly offering concessions, such as free rent or gift cards, with 16.6% providing incentives in January 2024, the highest level in over a decade, reflecting softer demand.

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