CoStar Group Inc. Reports March 2026 Multifamily Rent Growth Trends

On March 31, 2026, Apartments.com, a leading online marketplace operated by CoStar Group Inc. (NASDAQ: CSGP), unveiled its latest report detailing multifamily rent trends across the United States. The report highlights a modest increase in average apartment rents, indicating a gradual return to positive growth following a period of stagnation in the latter half of 2025.

The national average apartment rent rose to $1,723 in March 2026, reflecting a +0.2% increase from February's revised level of $1,719. This marks the fourth consecutive month of positive rent growth, indicating a potential upward trend as the spring leasing season commences. However, year-over-year growth has moderated to +0.4%, down from +0.5% in February and significantly lower than the +1.5% increase recorded in March of the previous year.

The report suggests that while rent growth typically accelerates during this time of year, the pace of increases has been slower than usual, attributed to subdued demand growth and ongoing supply constraints in the housing market.

March saw broad-based rent increases across all five U.S. regions. The Midwest and Mountain regions led with a monthly growth of +0.3%, followed closely by the Northeast and South, each recording a +0.2% increase. The Pacific region experienced the smallest monthly gain at +0.1%.

When examining year-over-year performance, the Midwest emerged as the top performer with a +1.9% increase, followed by the Northeast at +1.0% and the Pacific at +0.7%. In contrast, the South and Mountain regions faced declines of -1.3% and -2.2%, respectively. This divergence in performance highlights the ongoing challenges faced by Western markets, particularly in areas with high supply levels.

At the metro level, rent growth broadened significantly, with 46 out of the top 50 markets reporting month-over-month increases, up from 38 markets in February. San Francisco led the charge with a notable +0.8% increase, followed by Boston at +0.7% and the East Bay at +0.6%. However, four major markets, including Oklahoma City and Northern New Jersey, experienced slight declines of -0.1%.

On an annual basis, San Francisco continued to dominate with a remarkable +6.3% growth, followed by Norfolk at +4.2%, San Jose at +3.6%, and Chicago at +2.7%. Conversely, markets that have seen significant supply additions, such as Austin (-4.8%), Denver (-3.5%), and San Antonio (-3.3%), are facing downward pressure on rent prices.

The report underscores that while there are notable gains in monthly rent across various regions, year-over-year performance remains inconsistent, heavily influenced by local supply conditions. Many markets are now past the peak of construction activity; however, a considerable inventory overhang continues to impact national rent growth as the 2026 spring leasing season unfolds.

As the market adjusts to these supply dynamics, analysts will be closely monitoring how demand responds to the current economic landscape, including the effects of inflation and evolving tenant preferences.

CoStar Group Inc.'s Apartments.com report for March 2026 reveals a cautiously optimistic outlook for the multifamily rental market. While the pace of rent growth remains modest, the continued increase in rentals signals a potential stabilization and recovery phase. Stakeholders in the real estate sector will need to navigate the complexities of supply and demand as they strategize for the upcoming months. As CoStar Group maintains its commitment to providing comprehensive market intelligence, the industry is poised for further insights into evolving trends in the multifamily housing landscape.