Apartment operators entered the 2026 spring leasing season hoping the industry had finally reached a turning point after years of record new supply and aggressive concessions. While few are calling what they’re seeing “a full recovery,” many believe the market is beginning to stabilize as deliveries slow and excess inventory starts to be absorbed.

While the multifamily sector has not fully returned to pre-supply-surge conditions, many said this year’s spring leasing performance represents the clearest sign yet that the market is normalizing.

“The 2026 spring leasing season has shown improvement over 2025, particularly in consistency of demand and leasing velocity,” said Marcie Williams, chief strategy officer at The Bainbridge Cos. “Overall, the environment remains competitive, but it feels more stable and less reactive than last spring.”

Leasing velocity has improved in several markets, concessions are becoming more targeted and renewal rates are strengthening as renters increasingly choose to stay put rather than absorb moving costs in an uncertain economy.

“Our 2026 spring leasing season is outperforming last year by a meaningful margin, with first-visit prospect traffic up roughly 41% year-over-year,” said Tammy Freiling, chief financial officer of property management at Kairoi Residential. “More telling than the traffic gain is what’s happening at conversion: our leasing velocity has strengthened in tandem.”

Still, the gains have not been universal. Several companies note that local supply conditions continue to determine which markets are thriving and which remain under pressure.

Stephen Prochnow, executive vice president of property management for Mill Creek Residential, noted the spring season has been mixed, and very market-dependent.

“The story this spring is less about overall demand and more about where you sit relative to local supply,” Prochnow said. “In markets where we’re still competing against a concentration of lease-ups in close proximity, renters have a lot of choices and they know it.”

Supply burn-off starts to shift the market

The improving supply-demand balance is also beginning to support rental rate recovery in select markets, particularly at stabilized communities. While aggressive rent growth has not returned, some firms are testing modest increases and scaling back concessions as occupancy improves.

“We’re seeing far more communities reach stabilization—in our own portfolio and across our submarkets—than we are seeing new lease-ups kick off,” Prochnow said. “Communities that have stabilized are starting to experiment with concession reduction and modest rent growth, which is encouraging.”

Some markets stabilize while others remain soft 

While the industry is seeing signs of improving, the recovery remains highly uneven depending on local supply conditions.

“As communities reach stabilization and available inventory continues to decline, we’re starting to see leasing momentum improve in places that were most challenged 12 months ago,” Prochnow said. “Progress in the hardest markets is a good sign that the broader dynamic is shifting.”

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