Lessors of Residential Buildings NAICS 531110

Jun 20, 2026 - Residential Rent Decline Continues

• According to Realtor.com, the US median asking rent fell 1.5% year over year in May 2026 to $1,686, marking the 34th consecutive month of annual declines for 0-2 bedroom units across the nation's 50 largest metros. For residential landlords, continued rent softening, combined with elevated multifamily supply, may limit pricing power, increase competition for tenants, and require greater focus on occupancy and retention strategies. Rents declined across all major unit types, though national asking rents remain 17.2% above pre-pandemic levels despite being 4.4% below their 2022 peak. Realtor.com also found notable shifts in renter demand patterns, with some markets attracting more local renters while others saw rising interest from out-of-market renters, highlighting evolving migration and housing preferences that continue to influence rental demand nationwide.
• In the first quarter of 2026, there were about 14,000 single-family built-for-rent (SFBFR) housing starts in the US, down about 26% from the 19,000 that were started during the same period in 2005, according to the National Association of Home Builders' analysis of US Census Bureau data. During the four most recent quarters, 62,000 SFBFR homes were under construction, down 26% from the previous four-quarter period. However, while the historical four-quarter moving average market share for SFBFR is about 2.7% (1992-2012), SFBFR’s current share of the overall single-family market is just under 7%. In Q1 2026, the SFBFR market was challenged by high financing costs and an increase in multifamily supply. Developer activity was also chilled by a Senate version of a housing bill that would have required institutional investors to sell SFBFR homes to individual buyers within seven years. A House version of the housing bill removed the SFBFR provision. SFBFR homes provide an alternative for consumers who want more space but are challenged by a lack of affordable housing inventory and downpayment requirements in the for-sale market.

• A recent $69 billion merger announcement by AvalonBay Communities and Equity Residential could signal a fresh round of industry consolidation, as large landlords seek safety in numbers amid weak rent growth and profits, according to The Wall Street Journal. The move would create the nation’s largest apartment owner, and comes as apartment landlords face sluggish rent growth, softer profits, rising costs, elevated interest rates, and investor pressure. For the apartment industry, the deal signals that more owners may pursue mergers, acquisitions, and cost-cutting measures to improve efficiency, lower financing costs, and strengthen competitiveness as rent growth remains constrained by a large pipeline of new apartment supply, particularly in the Sun Belt and Mountain West. Analysts expect consolidation to continue even though the combined company is unlikely to gain significant pricing power.
• According to Smart Cities Dive, the US Department of Housing and Urban Development is offering up to $3 million in grants to help local governments adopt automated permitting and building code systems, with awards ranging from $300,000 to $1.5 million and applications due July 13. HUD said the initiative will test tools designed to speed permitting, lower costs, and support housing affordability efforts. The funding covers three years of software licensing, as well as staffing costs tied to implementation and operation. The program follows recent federal actions aimed at reducing regulatory barriers to housing construction, including a March executive order from President Donald Trump and HUD guidance encouraging the use of AI in permitting. Participating jurisdictions may use systems that support application intake, completeness reviews, automated code checks, and digital workflow management.