Where Multifamily Asking Prices Are Rising and Falling in 2026

Across the 2026 multifamily market, one factor is putting a thumb on the scale when it comes to asking prices: local supply.

An analysis of LoopNet multifamily listing data from November 2025 through March 2026 shows where that dynamic is playing out in real numbers. Average asking prices in Washington, D.C. jumped 26%, but fell 23% in Atlanta. Baltimore rose 29% and Saint Louis fell 33%.

For CRE professionals deciding where to put their capital, understanding which markets are supply-constrained and which are oversupplied is the most important variable in the underwriting conversation right now, and asking prices are one of the clearest early signals of where that pressure is building.

A Market Moving in Two Directions

To identify where multifamily asking prices are shifting, LoopNet analyzed city-level listing data from November 2025 through March 2026 for cities with at least 20 active multifamily listings in both months. That listing threshold filters out thin markets where a handful of listings could have skewed average prices.

Of the 93 cities remaining, asking price increases were concentrated in the Northeast and along the coasts, while declines were concentrated in Sun Belt metros and parts of the Midwest. The dividing line tracks closely with where new multifamily supply landed over the past three years and where it did not.

Supply conditions are driving a regional divide

There are exceptions in both directions. But as a rule, markets that absorbed significant new inventory between 2023 and 2025 are seeing price compression, while markets where new development was constrained are seeing prices hold or rise.

Average asking price change for select U.S. multifamily markets between November 2025 and March 2026, based on LoopNet listing data. Includes cities with a minimum of 20 active listings in both months.

Where Multifamily Asking Prices Rose

Northeast and coastal markets led the gains.

Among the cities that met the listing threshold, asking price increases were most consistent across Northeast and coastal markets.

Washington, D.C. saw average asking prices increase 26% and Baltimore rose 29%, while Philadelphia climbed 11% and Jersey City posted an 18% increase. On the West Coast, San Francisco rose 11% and North Hollywood gained 18%.

One major similarity among them: constrained supply. A combination of high construction costs, regulatory barriers, and limited available land have limited new multifamily development in the Northeast and Coastal California for years. That supply constraint kept these markets from absorbing the kind of new inventory that has pressured prices elsewhere.

Tight supply supports rent growth, and stronger rent growth supports higher asset valuations, which helps explain why asking prices in these markets have moved the way they have. According to the National Apartment Association's 2026 Apartment Housing Outlook, the Northeast was marked by limited new supply in 2025, which supported above-average rent growth. The report projects that trend will continue through 2026, with Northeast rent growth forecast for 4%-5% annually and West Coast growth projected for 2%-3%.

Where Multifamily Asking Prices Fell

Oversupplied markets are repricing.

The cities on the other side of the data tell a different story. Atlanta multifamily property saw a decline in average asking prices of 23% over the same period, while Denver dropped 19%. Sacramento fell 18%, Austin declined 13%, and Houston slid 10%. Saint Louis posted the steepest decline among high-confidence markets at 33%.

Once again, supply is the common thread. According to CBRE's U.S. Real Estate Market Outlook 2026, Sun Belt and Mountain markets are contending with the lingering effects of a 50-year high wave of new supply, which has weighed on occupancies and forced operators to compete on pricing for new tenants.

That competition, which often includes discounting rents to maintain occupancy, has downstream impacts on a property's net operating income (NOI). With a lower NOI, buyers are less likely to entertain high prices which, in turn, leads sellers to adjust prices down.

What's Driving Multifamily Market Trends

Supply cycle differences are impacting local markets.

The areas where new multifamily supply landed, and where it did not, map closely to the areas where asking prices are falling and rising, respectively.

Sun Belt and select Midwest markets absorbed a historically large wave of new inventory between 2023 and 2025. According to PwC and ULI's Emerging Trends in Real Estate 2026, national multifamily starts dropped more than 40% between 2023 and 2025, but markets including Austin, Miami, Nashville, and Phoenix will continue to add 4%-5% to their total housing stock in new deliveries in 2026 and 2027.

By contrast, supply-constrained markets like those in the Northeast saw comparatively little new inventory added, keeping pricing pressure in sellers' favor.

The national construction slowdown offers some relief for oversupplied markets, but not immediately. According to a CRE Daily analysis of the Marcus & Millichap 2026 National Multifamily Investment Forecast, multifamily construction is down 53% from its 2023 peak. Fewer new units entering the pipeline means less competition for existing properties down the road, but markets carrying significant inventory still need to absorb what's already been built before that slowdown translates into pricing recovery.

Economic uncertainty is adding pressure.

Economic uncertainty is compounding supply pressure in already-soft markets. Rising construction costs and policy uncertainty have increased development costs and delayed leasing and investment decisions, according to a J.P. Morgan CRE analysis of commercial real estate conditions. Not only are investors holding off, but uncertainty makes underwriting more complicated, especially in markets where exit cap rate assumptions are already under pressure.

Demand-side headwinds are compounding the issue in already-soft markets. Slower household formation and moderating population growth in high-supply metros are extending the timeline to absorb excess inventory, which pushes pricing recovery further out.

What This Means for Investors

Softening markets aren't an automatic pass.

A 19% drop in Denver or a 33% decline in Saint Louis can look like a red flag at first, but with the right hold horizon, that price compression creates a more attractive entry point than the headline number suggests.

The right opportunities depend on what happens when the supply overhang clears. Take Sun Belt markets, for example. According to PwC and ULI's Emerging Trends in Real Estate 2026 report, they're expected to outperform long-term for job creation, population growth, and multifamily performance once current headwinds ease.

However, the same report makes clear that markets like Austin will continue absorbing new supply through 2026 and into 2027. That's the timeline investors need to underwrite against, in particular in multifamily, where investors typically underwrite to a five to seven year hold to account for a full lease cycle and market normalization. A five-year hold horizon looks very different from a two-year one in a market still working through excess inventory.

What to look for during due diligence.

An investor who can underwrite through near-term market volatility, and who has confidence in their chosen market's demographic trajectory may find a compressed market offers better prices now for improved long-term returns. The key is to determine whether local demand fundamentals support recovery on a timeline that matches your hold period goals.

The question to ask during due diligence focuses less on whether prices have fallen and more on whether employment growth and household formation trends support demand recovery before your exit window opens.

Rising markets come with their own tradeoffs.

Similarly, markets that saw prices increase deserve their own careful consideration. Increased asking prices in cities like Washington, D.C. or Philadelphia signal supply constraints that make them defensible buys, but also translate to tighter cap rates that require careful underwriting.

Baltimore's average cap rate sits above 8.7% and Washington, D.C. averages just over 7%, according to LoopNet's Most Profitable Cities for Multifamily Investments in 2026 analysis. Combined with average listing prices from that same study of approximately $1 million in Baltimore and $2.6 million in D.C., that data reflects two distinct investor profiles: Baltimore for a yield-focused buyer prioritizing strong cash flow at lower capital commitment, and D.C. for investors who can pay a premium for deeper demand and long-term income stability.

Source: LoopNet listing data, November 2025-March 2026. Cap rate data from LoopNet's Most Profitable Cities for Multifamily Investments in 2026.

Entry price discipline matters.

The spread between acquisition cost and stabilized value is narrower in supply-constrained markets, which makes the margin for underwriting assumption errors thin. Add to that heightened competition from private capital, and it's clear that evaluating multifamily properties for sale in these markets requires a precise understanding of what you're acquiring and at what price.

In a market where asking prices diverged by more than 60 percentage points between cities, the best cities for multifamily investing depend entirely on which side of the supply cycle you're underwriting. Right now, with asking prices moving in opposite directions depending on where you look, it matters more than usual.

Whether you're targeting a supply-constrained market with pricing momentum or an oversupplied market with a recovery thesis, the right deal starts with the right market.