National multifamily net absorption reached its fifth-highest quarterly total in nearly 25 years, even as median asking rents continued to decline.

Net absorption across the country hit 124,600 units in the second quarter, up 8% year-over-year, according to a report from Cushman & Wakefield. Vacancy also fell below 9% for the first time since 2024, with the rate dropping 35 basis points quarter-over-quarter to 8.9%.

Strong apartment demand comes as macroeconomic headwinds like muted job growth, slow immigration and moderate population growth have threatened to take a bite out of renters' appetite for apartments.

"Renter household formation continues to outperform what those indicators alone would predict, underscoring the resilience of apartment demand," the brokerage wrote in its report.

As a result of the uptick in demand, absorption of about 362,000 units on a trailing four-quarter basis also exceeded deliveries of about 358,000 units for the first time since early 2022.

Sun Belt markets continued to pace the country in the first half of 2026, with Dallas-Fort Worth topping the group at 18,600 units absorbed, followed by Phoenix, Atlanta and Austin.

But the news isn't entirely rosy for multifamily operators. Median asking rent in the 50 largest metros came in at about $1,700, roughly 4% lower than its summer 2022 peak but about 16% higher than pre-pandemic levels, according to Realtor.com.

The national median asking rent fell modestly by about 1.5% compared to a year ago. Studio apartments saw the largest drop-off among unit sizes, dipping by 2.2% year-over-year.

Some markets also saw permitting for new construction at the lowest rates since 2019. The New York City metro area saw only 1.6 new multifamily units permitted for every 1,000 residents in 2025, while Boston had just 1.1 new multifamily units permitted for every 1,000 residents.

As new construction dips, the supply increase from the past three years that has caused rents to drop may not last much longer, according to Realtor.com.