U.S. Multifamily Apartment Construction Activity Q1 2026

under construction

Apartments.com and CoStar released an update on U.S. multifamily construction activity for the first quarter of 2026, showing a significant pullback in new apartment development due to challenging market conditions such as slower rent growth, elevated financing costs, and high development expenses. Apartment construction starts declined sharply to approximately 55,000 units, a 73% decrease from the peak in early 2022, with the national construction pipeline shrinking rapidly to roughly 579,000 units under construction. Construction activity varies by region, with the Mountain and South regions having the highest exposure relative to inventory, and cities like New York City, Dallas–Fort Worth, Miami, and Charlotte having notable construction pipelines.