EP#105 Grant Montgomery | Q4'26 Multifamily Update: Improving Fundamentals, Cooling Capital

<p>Apartment demand and rent fundamentals are heating up, just as capital markets are cooling down — setting up an unusual paradox we haven&#39;t seen in recent history. Rental housing economist Jay Parsons breaks down the latest apartment data and trends in this episode recapping newly released data on the U.S. multifamily market. Apartments continue to see demand outpacing supply here in 2026, allowing vacancy rates and rental rates to find momentum following 3-4 years of backtracking. Even in supply-drenched markets like Austin, where rents fell dramatically amidst the surge of apartment completions, the storyline is changing quickly as supply drops off. Later in the program, Jay welcomes in CoStar&#39;s head of multifamily research, Grant Montgomery. Grant shares his take on which markets could heat up fastest in 2027, and also explains why CoStar recently upgraded its rent outlook. Additionally, Grant unveils one market that is going against the grain with a recent jump in construction starts, even as starts remain limited in most of the country. Also in this episode, Jay shares his take on The Wall Street Journal&#39;s report about apartment buyers demand price concessions from sellers given the Fed&#39;s recent rate hike. Jay also hops across the pond (figuratively) to discuss rising rent protests in Spain, as that European nation considers rent control. Also, Jay shares his weekly hot take, this time on why rent concessions may stick even as occupancy rates improve.</p>