Apartment rents continue to decline as vacancy rates reach all-time highs.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 02 2025
0mins
Source: CNBC
Current Trends in Multifamily Housing: The multifamily housing market is experiencing increased vacancies and declining rents due to a surge in new supply and weakening demand, particularly among younger workers. The national median rent fell 1% in November, marking the fourth consecutive monthly decline.
Impact on Young Renters: A significant portion of young adults (18-34 years old) are living with family, reflecting high rental costs and a challenging job market. This demographic traditionally drives core renter demand, which is currently weakened.
Regional Variations in Rent Changes: Different markets are experiencing varying rates of rent decline, with cities like Las Vegas and Boston facing specific economic challenges. Austin, Texas, is seeing the most significant rent drops due to ongoing multifamily construction.
Future Market Outlook: While the construction of new multifamily units is expected to slow, the existing supply pipeline remains substantial. Analysts predict that the market may stabilize, but demand outlooks are uncertain amid a shaky labor market.
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Analyst Views on EQR
Wall Street analysts forecast EQR stock price to rise
14 Analyst Rating
7 Buy
7 Hold
0 Sell
Moderate Buy
Current: 63.050
Low
60.95
Averages
70.87
High
80.00
Current: 63.050
Low
60.95
Averages
70.87
High
80.00
About EQR
Equity Residential is a real estate investment trust. The Company is focused on the acquisition, development, and management of residential properties located in and around cities. The Company’s primary business is the acquisition, development, and management of multifamily residential properties, which includes the generation of rental and other related income through the leasing of apartment units to residents. The Company owns and operates rental apartment properties, with a presence in Boston, New York, Washington, D.C., Southern California (including Los Angeles, Orange County and San Diego), San Francisco and Seattle, and an expanding presence in Denver, Atlanta, Dallas/Ft. Worth and Austin. The Company owns investments in approximately 311 properties located in 10 states consisting of over 84,249 apartment units. ERP Operating Limited Partnership (ERPOP) conducts the multifamily residential property business of Equity Residential.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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See More
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See More
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See More
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See More
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- Financial Performance: This outlook reflects the company's expectations for its financial performance in the upcoming quarter.
See More
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Equity Residential Outlook: The company projects a financial outlook for fiscal year earnings per share (EPS) ranging from $1.44 to $1.56.
Market Performance: This forecast indicates a positive trend in the company's performance, reflecting confidence in its operational strategies and market conditions.
See More
