# US multifamily housing market trends > Live situation record from CLSTR: https://clstr.news/situations/us-multifamily-housing-market-trends > Updated: 2026-08-25T01:31:17.000Z. Sources: 3. Developments: 2. The United States multifamily housing sector is experiencing a period of significant growth and structural shifts. In the second quarter of 2026, net absorption reached 124,600 units, an 8% year-over-year increase that represents one of the highest quarterly absorption rates in nearly 25 years. While median asking rents in the 50 largest metropolitan areas declined by 1.5% annually to approximately $1,700, they remain 16% above pre-pandemic levels. Construction trends show a notable rise in rental-focused development. Built-for-rent housing starts increased by 5% year-over-year in the second quarter of 2026, with 109,000 residences beginning construction. Rental units accounted for 93% of all multifamily construction starts during this period, with expansion primarily occurring in smaller metropolitan areas and lower-density markets. Adaptive reuse is also accelerating, as the conversion of vacant office buildings into multifamily housing saw a 28% year-over-year increase at the start of 2026, with approximately 90,300 units under construction. Market drivers include demand from Millennial and Generation Z demographics, an increase in single-person households, and a growing emphasis on smart home technologies and sustainable building practices. ## Timeline ### 2026-08-25: Multifamily rental housing starts increase in Q2 2026 Multifamily for-rent housing starts rose 5% year-over-year in Q2 2026, driven by demand in smaller metro areas and a shift toward rental living among younger demographics. 3 sources. https://clstr.news/cluster/multifamily-rental-housing-starts-increase-in-q2-2026 ### 2026-08-10: US multifamily housing demand surges amid rising office conversions US multifamily net absorption hit a 25-year high in Q2 2026, while office-to-residential conversions continue to rise, with 90,300 units under construction as of early 2026. 4 sources. https://clstr.news/cluster/us-multifamily-housing-demand-surges-amid-rising-office-conversions --- Cite as: US multifamily housing market trends. CLSTR, https://clstr.news/situations/us-multifamily-housing-market-trends