Feb 2026
A January 2026 article from CRE Daily reported that mid-tier multifamily properties are set to outpace their luxury counterparts this year, according to accounts by Globe St.
What do the numbers say?
Mid-tier, three-star multifamily properties showed a 0.5% rent growth in Q4 of 2025, exceeding the national average. Much of this growth can be attributed to the fact that little new stock has been added to the mid-tier multifamily market.
On the other hand, luxury multifamily assets are facing an oversupply challenge. Nearly 70% of under-construction units fall under this category, leading to consistent downward pressure on rent for these properties, which posted a negative 0.2% growth in rent. This is especially apparent in metros that have large volumes of new luxury multifamily property inventory.
Which markets are posting positive rent growth for multifamily rent?
So, which regions of the U.S. are showing rent growth for multifamily rent regardless of category? San Francisco and similar metros with strong job growth are posting solid multifamily rent gains, while areas like Washington, D.C., that are suffering from job cuts, are seeing the effects in rent and demand.
Supply and demand, of course, play a large role in rent growth. Thanks to a steady supply pipeline and demand for multifamily properties, the Midwest and Northeast markets showed solid rent performance last year and are expected to remain stable in 2026.
