CoStar Lowers Near-Term U.S. Multifamily Forecast

CoStar, the leading global provider of online real estate marketplaces, information and analytics, has released an updated forecast for the U.S. multifamily sector, reflecting a more cautious outlook for rent growth and vacancy trends through 2026.

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Houseview forecast calls for declining vacancy

National apartment rent growth is now projected to decline by 0.1% in the fourth quarter of 2025, a downward revision of 160 basis points from the previous forecast. Vacancy is expected to hold at 8.2% through year-end before easing to 7.9% by the end of 2026.

“The revised forecast reflects a more measured view of near-term performance,” said Grant Montgomery, National Director of Multifamily Analytics at CoStar Group. “Still, a turning point is approaching. In the final quarter of 2025, renters are expected to occupy more units than are added to supply — a first since the third quarter of 2021. That shift should allow vacancy to begin receding in 2026, supported by a shrinking construction pipeline and steady renter demand.”

The updated outlook also accounts for slower growth in employment, population, and household formation, which may delay absorption in oversupplied markets. However, limited for-sale housing inventory continues to support multifamily demand by keeping many renters priced out of homeownership.

The full forecast can be found here.

For more information about the company, its products and services, please visit costargroup.com.

About CoStar Group

CoStar Group (NASDAQ: CSGP) is a global leader in commercial real estate information, analytics, online marketplaces and 3D digital twin technology. Founded in 1986, CoStar Group is dedicated to digitizing the world’s real estate, empowering all people to discover properties, insights and connections that improve their businesses and lives.

CoStar Group’s major brands include CoStar, a leading global provider of commercial real estate data, analytics, and news; LoopNet, the most trafficked commercial real estate marketplace; Apartments.com, the leading platform for apartment rentals; and Homes.com, the fastest-growing residential real estate marketplace. CoStar Group’s industry-leading brands also include Matterport, a leading spatial data company whose platform turns buildings into data to make every space more valuable and accessible, STR, a global leader in hospitality data and benchmarking, Ten-X, an online platform for commercial real estate auctions and negotiated bids and OnTheMarket, a leading residential property portal in the United Kingdom.

CoStar Group’s websites attracted an average of 143 million unique monthly visitors in the third quarter of 2025, serving clients worldwide. Headquartered in Arlington, Virginia, CoStar Group is committed to transforming the real estate industry through innovative technology and comprehensive market intelligence. From time to time, we plan to utilize our corporate website as a channel of distribution for material company information. For more information, visit CoStarGroup.com.

This news release includes "forward-looking statements," including, without limitation, statements regarding CoStar's expectations or beliefs regarding the future. These statements are based upon current beliefs and are subject to many risks and uncertainties that could cause actual results to differ materially from these statements. The following factors, among others, could cause or contribute to such differences: the risk that forecasted U.S. slower growth in employment, population and household formation do not occur as expected or are not influenced by general economic conditions as expected. More information about potential factors that could cause results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, those stated in CoStar’s filings from time to time with the Securities and Exchange Commission, including in CoStar’s Annual Report on Form 10-K for the year ended December 31, 2024 and Forms 10-Q for the quarterly periods ended March 31, 2025, June 30, 2025, and September 30, 2025, each of which is filed with the SEC, including in the “Risk Factors” section of those filings, as well as CoStar’s other filings with the SEC available at the SEC’s website (www.sec.gov). All forward-looking statements are based on information available to CoStar on the date hereof, and CoStar assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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