U.S. multifamily construction continued to decline during third quarter 2026, with approximately 550,000 units under way, the lowest level in more than a decade, according to Marcus & Millichap’s November 2026 housing research brief. The slowdown in development could support improving apartment fundamentals, although higher borrowing costs may constrain investment activity.
Despite slower hiring, renters absorbed more than 56,000 apartment units during the third quarter, with Sun Belt markets recording some of the strongest demand relative to inventory. Austin; Jacksonville, Fla.; and Tampa, Fla., could see modest vacancy declines as new supply becomes more manageable. Nationally, the share of apartments offering concessions declined from 17 percent in May to 14.5 percent in September.
Multifamily transaction activity reached its second-highest level in f
