Multifamily Recovery Expands to Lower-Tier Properties
The U.S. multifamily market is showing signs of a broader recovery, extending beyond high-end Class A properties into lower-tier segments like Class B and C. As of summer 2026, national vacancy rates fell below 9%, the first time since early 2024, while asking rents grew at an accelerated pace year-over-year in Q2. According to data from Cushman & Wakefield (CWK), its portfolio saw improved occupancy across all classes, with Class A up by 38 basis points and Class B rising by 25 basis points compared to the prior year. Leasing activity also increased significantly, with a 19% rise in inquiries, visits, and applications. Delinquency rates dropped as well, aided potentially by stronger renter incomes. Concessions offered to tenants have started declining due to reduced construction pipeline pressure, which has eased competitive supply conditions across the market. The recovery is being driven by strong demand growth and a slowdown in new apartment deliveries, with national construction at its lowest level since 2013. This shift suggests healthier fundamentals are spreading beyond just premium assets into more affordable segments of the multifamily sector.
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Topics: recovery_trends rent_growth vacancy_rates