National Rent Growth Stalls, Vacancy Rates Hit Record Highs in January 2026
Apartment rents across the United States continued to decline in January 2026, marking the fourth consecutive winter with a significant offseason dip. The national median rent stood at $1,353, a 1.4% decrease compared to the same period last year, according to Apartment List. This represents the largest annual drop since September 2023 and the lowest January rent recorded since 2022, with rents now 6.2% lower than their peak in the summer of 2022.
Record Vacancy and Leasing Times
The national vacancy rate reached a record high of 7.3% in January, based on Apartment List’s data dating back to 2017. Apartments are also taking longer to lease, averaging 41 days – four days more than in January 2025. This extended leasing time is another high for the index.
“Early last year, it appeared that annual rent growth was on track to flip positive for the first time since mid-2023; still, that rebound stalled out and reversed course during a slow summer moving season that has now dragged into the winter,” explained Chris Salviati, chief economist at Apartment List.
Supply and Demand Dynamics
While the surge in recent apartment supply is beginning to wane, a substantial number of units are still entering the market. This increased supply is coinciding with weaker demand, driven by a tighter job market and slower rates of household formation.
Regional Variations
The majority of annual rent declines are concentrated in the South and Mountain West regions. However, markets in the Northeast, Midwest, and parts of the West Coast are bucking the trend, continuing to experience rent increases despite the typical winter slowdown.
Softest and Fastest-Growing Markets
Austin, Texas, is currently experiencing the most significant rental market softness, with median rents down 6.3% year-over-year. New Orleans, San Antonio, Tucson, Arizona, and Denver follow closely behind.
On the other end of the spectrum, Virginia Beach, Virginia, is leading the nation in rent growth at 5%, followed by San Jose and San Francisco, California; Chicago; and Providence, Rhode Island.
Looking Ahead
Salviati notes that the impact of waning construction on market conditions will now depend heavily on rental demand, which is facing increased uncertainty due to weakness in the labor market and broader economic concerns. “The wave of construction that has been driving these conditions is waning, but whether or not market conditions shift will now depend on rental demand, whose outlook has grown shakier due to weakness in the labor market and general economic uncertainty,” he stated.
UCSF Leadership and Supply Chain Management
Justin Sullivan, Associate Vice Chancellor and Chief Procurement Officer for Supply Chain Management at the University of California, San Francisco (UCSF), also serves as a co-chair of the Risk Management Subcommittee for the University of California system. Justin Sullivan’s role at UCSF involves overseeing procurement, payment, and delivery of goods and services to support the university’s mission. The Risk Management Subcommittee is focused on assessing and managing risks associated with AI-enabled technologies, including those related to procurement.