Seasonal bump offered limited relief from heavy new supply
US multifamily rents edged up in January, hinting at a fragile rebound even as landlords and lenders still face a heavy wave of new supply.
Apartments.com, a CoStar Group marketplace, reported that the national average asking rent rose to $1,713 in January. That's a 0.2% increase from December’s revised $1,709.
Annual rent growth eased to 0.6%, down from 0.7% in December and 1.5% a year earlier, underscoring how sharply the post‑pandemic boom has cooled.
The gain followed a December inflection after five straight months of flat or negative monthly change, suggesting seasonal patterns were reasserting themselves.
The pickup was broad, but modest. All four regions posted month‑over‑month increases, led by the Midwest at 0.27%, followed by the Northeast at 0.21%, the South at 0.17% and the West at 0.09%.
On a year‑over‑year basis, the Midwest again led with 2.1% growth, with the Northeast at 1.4%, while the South and West recorded declines of 0.2% and 1.5%, respectively.
At the metro level, 42 of the top 50 markets saw rents rise, up from 25 in December. San Francisco, Norfolk and San Jose led January rent gains, while Oklahoma City, Louisville, Memphis, Houston and Salt Lake City logged declines.
Markets in the Mountain West and Sun Belt continued to face “elevated vacancy amid aggressive new supply, putting downward pressure on rents,” the report said.
On an annual basis, San Francisco posted the strongest rent growth at 6.3%, followed by Norfolk, San Jose and Chicago. Austin, Denver and Phoenix remained among the weakest, with year‑over‑year declines tied to oversupply.
Supply‑constrained Midwest and select coastal markets continued to outperform, while former Sun Belt darlings struggled to regain pricing power despite solid underlying demand.
January’s improvement still sits within a low‑growth regime: rent curves appear to be normalizing rather than re‑accelerating, and underwriting assumptions in high‑supply metros likely need to stay conservative even as seasonal tailwinds return.
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