A new study shows that U.S. multifamily construction activity continued to pull back in new development as market conditions continue to be challenging.
That’s according to Apartments.com and CoStar, a provider of commercial real estate data, analytics and news, in its latest update on U.S. multifamily construction activity.
Apartment construction starts declined to roughly 55,000 units in the U.S. in the first quarter of 2026. That’s a 73% decrease from the peak reached in early 2022 and the lowest quarterly level since 2011, CoStar said. Slower rent growth, higher financing costs, and high development expenses have continued to limit new project feasibility across most markets, it said.
New starts remain subdued, CoStar said, and the national apartment construction pipeline is shrinking rapidly. The number of units under construction nationwide fell to about 579,000 in the first quarter of 2026, down more than 50% from its peak in early 2023 and broadly in line with mid-2010 levels, CoStar said.
“Developers have pulled back sharply as weaker rent growth and higher financing costs weigh on project feasibility,” said Grant Montgomery, National Director of U.S. Multifamily Analytics at CoStar Group. “While completions remain elevated for now, the contraction in the construction pipeline points to more balanced supply conditions ahead.”
Delivery Volumes Ease
CoStar noted that the market is continues to absorb completions from projects financed earlier in the cycle, although delivery volumes have begun to ease. Annual apartment deliveries peaked in 2024, CoStar said, and have fallen by roughly 26% over the past four quarters.
The company said that construction activity remains uneven.
The Mountain and South regions continue to have the highest construction exposure relative to inventory, at about 3.3% and 3.2% of stock under construction, respectively.
At the market level, CoStar said that New York City has the biggest absolute construction pipeline, followed by Dallas–Fort Worth. Miami, and Charlotte have the highest construction levels relative to existing inventory, CoStar said, with more than 6% of apartment stock under construction.
