The percentage of new apartment units that were absorbed within three months after completion was down five percentage points in the first quarter, according to the Census Bureau’s latest release of the Survey of Market Absorption of New Multifamily Units (SOMA).
An apartment or condo unit is considered absorbed into the market when it is initially rented or sold after construction and is no longer available. The survey covers new units in multifamily residential buildings with five or more units. The number of new multifamily units completed was 73,510 in the first quarter, down from 77,980 completed in the fourth quarter.
Apartments
The percentage of apartments absorbed within three months after completion was 41% for those completed in the first quarter of 2026. This was the seventh consecutive quarter in which new apartments were absorbed at a rate below 50% and was the lowest absorption rate since the fourth quarter of 2023. The median asking rent for apartments completed in the first quarter was $2,034, up 6.5% from $1,909 last year.
Along with the three-month absorption rate and completions, SOMA also reports absorption rates at six, nine, and 12 months after completion. For apartments completed six months ago (77,980 units), 69% have been absorbed into the market. For apartments completed nine months ago (97,670 units), 81% were absorbed. For those completed 12 months ago (93,120 units), 89% were absorbed into the multifamily market. The 12-month absorption rate is the second lowest in the SOMA data, as absorptions 12-months following completion for apartments completed in the first quarter of 2020 was only 86%.
Condominiums and Cooperative Units
The three-month absorption rate for new condominiums and cooperative units rose to 70%. The total number of completions of new condominiums and cooperative units was 3,879 in the first quarter of 2026, according to SOMA.
