National monthly rent growth turns slightly negative in August even as annual growth improves
Apartments.com, an industry-leading online marketplace of CoStar Group, Inc. (NASDAQ: CSGP), published its latest report on multifamily rent trends for August 2026.
U.S. apartment rents were essentially flat in August, with the national average falling -0.03% to $1,751 from July’s upwardly revised level of $1,752. This slight decline ended the eight consecutive months of positive rent increases following a period of flat to declining monthly performance in the second half of 2025. On an annual basis, rent growth accelerated to +1.3% in August 2026 from the upwardly revised +1.1% in July and was up slightly from the +1.1% reading recorded one year earlier.
The July 2026 national average was initially reported as a +0.03% month-over-month increase and has been revised upward to +0.1%.
While apartment rent growth typically slows in the late summer leasing season, the -0.03% month-over-month decline recorded in August continues the recent pattern of late-summer rent decreases observed since 2024. However, this year’s pullback was considerably milder than the declines of 0.1% and 0.2% reported in August 2024 and August 2025, respectively, suggesting some improvement in pricing conditions. Annual rent growth continues to trend higher, though elevated supply levels remain a constraint on pricing momentum nationally.
Regional rent growth was mixed in August. The Pacific region led on a monthly basis with a +0.1% increase. The other regions all posted declines: the Northeast at -0.02% and the Midwest at -0.03%. More significant declines were posted in the South and Mountain regions, both down -0.2%. On an annual basis, regional performance also remained uneven. The Pacific and the Midwest recorded the strongest year-over-year rent growth, both at +2.2%, followed by the Northeast at +2.0%. In contrast, rents declined year-over-year in the South by -0.1% and in the Mountain region by -0.5%. While still negative, both the South and Mountain regions have significantly trimmed their annual declines over the summer. Performance across Western markets continues to diverge, with supply-heavy Mountain metropolitan areas facing greater pressure than more supply-constrained Pacific markets.
At the metropolitan level, rent growth was less widespread in August than in July, with 12 of the top 50 markets posting month-over-month increases, 7 with unchanged rents and 31 recording declines. Orange County led monthly rent growth with a +0.6% increase, followed by San Francisco at +0.4%, East Bay at +0.3% and San Jose and Chicago at +0.2%. Thirty-one major markets recorded monthly rent declines, led by Orlando and Denver at -0.7% and Nashville at -0.5%, with several others posting smaller decreases.
On an annual basis, San Francisco continued to outperform, posting rent growth of +11.9%, followed by San Jose at +7.7%, Norfolk at +5.8% and East Bay at +5.1%. Meanwhile, markets experiencing the largest supply/demand imbalance under pressure, led by San Antonio with a -2.2% annual decline, followed by Denver at -1.9%, and Phoenix, Houston and Las Vegas, each at -1.2%, reflecting that new supply continues to outpace demand.
Regionally, the breadth of monthly rent growth narrowed in August, though year-over-year performance strengthened across all regions, continuing to vary widely and remaining closely tied to local supply conditions. While most markets have moved past peak construction activity, a substantial, though gradually easing, inventory overhang continues to moderate rent growth nationally as the summer leasing season concludes.
Contacts
Media:
Matthew Blocher
CoStar Group
(202) 346-6775
[email protected]
