The Co-Star U.S. Multifamily Momentum Index highlights those markets where apartment conditions are improving most quickly as supply pressures ease and demand stabilizes.
Recovery has been uneven since the second quarter of 2025, with four of the top 10 markets in this year’s ranking reporting annual rent declines.
The multifamily market momentum index ranks markets based on year-over-year improvement in several measures, including rent growth, vacancy, the balance between demand and new supply, and changes in the under-construction pipeline relative to inventory. Rather than identifying the strongest markets, it highlights where conditions are gaining ground most quickly.
Among the highest-ranked markets, Austin’s multifamily rents remain down, but the pace of the declines has slowed. Vacancy rates, on the other hand, are trending lower, and a sharp pullback in construction has allowed demand to begin closing the gap with supply.
Northern California markets, San Jose, San Francisco, and the East Bay, are also among the top 10, with San Jose ranking second.
These market rankings reflect a localized rebound in demand following sharper declines earlier in the cycle. Rent growth and vacancy have improved notably, pointing to renewed pricing power, while increases in the construction pipeline remain modest in absolute terms.
Southern markets, both large and mid-sized, are also prominent in the rankings, with Jacksonville ranking third. Jacksonville has shown strong improvement in occupancy, with vacancy declining roughly 170 basis points over the past year, even as rent remains slightly negative.
“Momentum varies by region, reflecting each market’s position in the current supply-demand cycle,” said Grant Montgomery, national director of U.S. multifamily analytics at CoStar Group. “In some areas, a rebound in demand is restoring pricing power, while in others, a slowdown in construction is allowing fundamentals to stabilize while rents remain down year over year. In still others, long-standing supply constraints are limiting the degree of change.”
