U.S. multifamily rents remained steady in April, rising $5 to $1,736, a modest 0.9% YoY increase. Demand held up despite a wave of new supply, driven by a strong job market and unaffordable home prices. The Renter-by-Necessity segment led growth at 2.1% YoY.

Occupancy dipped to 94.4%, its lowest since 2013, with Sun Belt metros like Austin, Houston, and Atlanta falling below 93%. New supply remains a challenge, though construction starts are slowing.

New York City led annual rent growth (+5.8%), while former Sun Belt favorites — Austin (-5.6%), Denver (-3.9%), and Phoenix (-3.1%) — saw rents decline due to oversupply.

On the capital markets side, CMBS activity paused in April as economic uncertainty widened spreads, delaying $15B in deals. Agency lenders stayed active, with floating-rate debt gaining popularity.

Single-family rental growth was flat, with most underperforming markets in the Sun Belt as new inventory outpaced demand.

Takeaway: The market is balancing solid demand with growing supply and economic volatility. Investors should monitor Sun Belt markets for further softening while looking to the Midwest and Northeast for relative stability.