America's Rental Housing 2026

Why It Matters

The report shows that even as rental demand eases, millions of households remain financially strained, making coordinated policy and supply‑side interventions essential for housing stability and broader economic health.

Key Takeaways

• Rental demand slowed sharply, vacancy rates began rising in 2025.
• New multifamily construction remains high despite market softening.
• Half of renters are cost‑burdened; severe burden affects 12 million.
• Median residual income fell 60% for low‑income renters since 2001.
• Federal and state policies, including tax credit boost, gain momentum.

Summary

The Joint Center for Housing Studies at Harvard released its 2026 edition of America’s Rental Housing report, the eleventh in a series tracking the nation’s rental market. The briefing highlighted a turning point: after years of rapid growth, apartment‑house demand contracted sharply in 2025, pushing vacancy rates upward while rent growth flattened and even slipped slightly in some regions.

Despite the softening market, multifamily construction remains robust. Starts peaked at 550,000 units in 2022 and, although they fell, 416,000 new projects were still under way in 2025, with a pipeline of roughly 700,000 units under construction. This excess supply has tempered rent increases, yet affordability has not improved; roughly 22.7 million households—about half of all renters—spend more than 30 % of income on housing, and 12.1 million are severely burdened.

Whitney Erggo, the report’s lead author, underscored the stark income‑distribution effects: low‑income renters now retain only about $210 of monthly income after rent, a 60 % drop in residual income since 2001, while middle‑income households have lost roughly 10 % of discretionary cash. The analysis also noted a surge in policy activity: the 2024 reconciliation bill raised low‑income housing tax credit allocations by 12 %, HUD added $2.4 billion for tenant‑based assistance, and several states—Oregon, Florida, Maine, New Hampshire, Texas—have enacted zoning reforms to unlock new supply.

The findings signal that market forces alone will not resolve the affordability crisis. Policymakers, developers, and nonprofit actors must coordinate to expand affordable stock, protect vulnerable tenants, and address the widening gap between rent costs and household incomes. For investors, the data suggest a shift toward mixed‑income and subsidized projects, while municipalities face pressure to adopt zoning changes that can increase supply without compromising community goals.

Original Description

The number of renters with housing cost burdens reached another record high in 2024, with nearly half of renter households spending more than a third of their income on housing. More recently, rents for new leases show modest declines and vacancy rates are ticking up as new demand softens. In this shifting landscape, the pace of multifamily construction—while still elevated—is cooling amid tough economic headwinds. However, as rents continue to cut into lower-income renters’ budgets, reductions in federal safety net programs are forcing state and local governments to stretch limited funds to fill the gaps. Meanwhile, the nation’s aging rental stock also faces growing investment needs that threaten access to safe, affordable homes.

Opening Remarks

Chris Herbert, Managing Director, Harvard Joint Center for Housing Studies

Presentation of Report Findings

Whitney Airgood-Obrycki, Senior Research Associate, Harvard Joint Center for Housing Studies

Panel Discussion

Sue Ansel, President & CEO, Gables Residential

La Shelle Dozier, CEO, Council of Large Public Housing Authorities

Chris Herbert, Managing Director, Harvard Joint Center for Housing Studies

The Honorable Mike Johnston, Mayor of Denver

Ronda Kaysen, Real Estate Reporter, The New York Times (moderator)