Vacancy

The Apartment Market Is Running at Two Speeds

A 7.2% national vacancy rate hides Sun Belt metros pushing 17% while supply-disciplined gateway markets sit near 4–5%.

The FYN Intelligence Team6 min read

The national apartment vacancy rate sits at 7.2% (Apartments.com/CoStar, Q2 2026), but that average hides a widening split. Overbuilt Sun Belt metros are pressing toward 17% — led by Sarasota (17.6%), Huntsville (17.4%), San Antonio (15.8%), Memphis (15.4%) and Baton Rouge (14.1%) — while supply-disciplined gateway markets sit near 4–5%.

The top-five highest-vacancy metros sit more than double the national average.

Where the market is softest, retention is the lever

National median rent is now 1.2% below year-ago (Apartment List), and concession use is broadening. For operators, the proprietary read is retention math: in a 17%-vacancy market you cannot re-price a vacated unit upward, so the cost of losing a resident is pure margin loss. Cross-referenced against our benchmarks — 70% of non-renewals cite maintenance and turnover runs ~$4,250/unit — maintenance responsiveness becomes the single most controllable retention lever precisely where the market is softest.

Sources

  1. Apartments.com — High-vacancy markets, Q2 2026
  2. Multifamily Dive — rent concessions and outlook