Fourth quarter 2025 earnings have been released for the four multifamily Real Estate Investment Trusts (REITs) tracked by Zonda Economics: AvalonBay Communities, Camden Property Trust, Equity Residential, and UDR. After reviewing their Q4 conference calls, we present our key observations below.
For Q4 2025, these leading multifamily REITs reported operating results that reflected typical seasonal softness, but they also noted sequential monthly improvements through January in rent growth, creating a positive setup for the spring leasing season. The REITs expect fundamentals to improve throughout 2026, particularly in the second half of the year when supply declines become more pronounced. These apartment operators, however, remain cautiously optimistic due to the uncertain employment backdrop.
Here are our seven key national rental market observations:
- Apartment demand remained solid in 2025 despite softer back half.
- REITs expect modest employment improvement in 2026.
- Occupancy remains healthy, supported by record low turnover.
- A record low share of renters moving out to buy a home.
- Momentum through January sets up a promising spring leasing season for rent growth.
- 2026 is set to be a transition year as rents improve in the second half and concessions burn off.
- New apartment supply is declining sharply, creating favorable business conditions for the years ahead.
The insights in this article were taken from a more in-depth research report published in Zonda’s National Outlook subscription.
