Rental Vacancy Rate by State: 2026 Rankings and Trends

The U.S. rental market shifted decisively in 2026 as the national rental vacancy rate reached 7.3 percent, its highest level since 2017, according to U.S. Census Bureau data. This marks a move away from the extremely tight conditions of recent years and into what economists describe as a renter-friendly market. State-level vacancy rates, however, vary widely, from 3.84 percent in New York to 9.0 percent in Texas, underscoring how local supply and demand dynamics matter more than national averages.

Key Numbers

• U.S. rental vacancy rate (Q2 2026): 7.3%
• Highest since: 2017
• Healthy market range: 5% to 8%
• Highest state vacancy index (March 2026): Texas, 9.0
• Lowest state vacancy index (March 2026): New York, 3.84
• States and D.C. above 8%: 9
• Regional annual change: South, Northeast, and Midwest up; West down

Explanation

Rental vacancy rate measures the share of rental housing units that are vacant and available for rent. It is a key indicator of balance between rental supply and demand. A rate below 5% typically signals a tight market favoring landlords, while a rate above 8% suggests an oversupplied market favoring renters. The 2026 national rate of 7.3% sits within the healthy range but near the upper bound, reflecting a construction-driven increase in available units.

The rise in vacancies is not a sign of economic distress but rather a multifamily construction boom. A wave of new apartment buildings, especially in the South and Sun Belt, has added supply faster than demand. At the same time, affordable rentals remain scarce, creating a split market where high-end units sit empty while lower-cost housing stays competitive.

State-level data reveal sharp contrasts. Texas, Colorado, and North Carolina have vacancy rates above 8.8%, while New York, Alaska, and New Jersey remain below 5%. These differences reflect local construction pipelines, population growth, and regulatory environments.

Definition

The rental vacancy rate is the percentage of year-round rental housing units that are vacant and available for rent at a given point in time. It excludes units that are vacant but already rented or sold, seasonal units, and units held off the market. The U.S. Census Bureau calculates it through the Current Population Survey/Housing Vacancy Survey (CPS/HVS).

Formula: Rental Vacancy Rate = (Vacant year-round rental units available for rent ÷ Total year-round rental units) × 100.

National Comparison

At 7.3% in the second quarter of 2026, the national rental vacancy rate is the highest since 2017. It remains within the 5–8% range that analysts consider balanced, but it signals a clear shift from the historically tight conditions of 2021–2023, when rates fell below 6% in many markets.

A national rental vacancy rate above 7% signals a decisively renter-friendly market, granting tenants more negotiating power, according to Jiayi Xu, economist at Realtor.com.

Regionally, the South, Northeast, and Midwest posted annual increases in Q2 2026, while the West was the only region to record decreases in rental and homeowner vacancy rates compared to the prior year.

State Comparison

State-level rental vacancy rates in March 2026 ranged from 3.84% in New York to 9.0% in Texas, according to Statista’s rental apartment vacancy index. The highest rates cluster in the South and Mountain West, where new construction has been most intense. The lowest rates are concentrated in the Northeast and California, where supply remains constrained.

• Highest vacancy states: Texas (9.0), Colorado (8.85), North Carolina (8.81), Utah (8.61), Alabama (8.35).
• Lowest vacancy states: New York (3.84), Alaska (4.85), New Jersey (4.94), Mississippi (5.1), Michigan (5.12).
• Mid-range examples: Florida (7.73), Georgia (7.86), Pennsylvania (5.77), Illinois (5.25).

Ranking Table

The table below shows the rental apartment vacancy index for 44 states and the District of Columbia as of March 2026, ranked from highest to lowest. Data for seven states were not available in this release.

Year-over-Year Change

While state-level year-over-year changes are not available in the March 2026 index, regional data from the Census Bureau show clear patterns. In the second quarter of 2026, the South, Northeast, and Midwest all recorded annual increases in rental vacancy rates. The West was the only region to see decreases in both rental and homeowner vacancy rates compared to the previous year.

This regional divergence reflects the concentration of new apartment construction in the South and parts of the Midwest, while the West’s earlier building boom has begun to be absorbed.

Factors Behind the Trend

The primary driver of rising rental vacancies is a multifamily construction boom. Years of low interest rates and strong rent growth encouraged developers to build apartments at a rapid pace, particularly in Sun Belt metros. Many of these projects are now being completed simultaneously, adding supply faster than demand.

• Oversupply of new units: Large apartment complexes in high-growth states are seeing higher vacancies.
• Affordable housing shortage: Despite overall higher vacancies, lower-cost rentals remain in extremely short supply.
• Population shifts: Migration patterns have changed since the pandemic, with some previously hot markets cooling.
• Economic conditions: Slower household formation and affordability constraints have tempered demand in some areas.

Why It Matters

Rental vacancy rates directly affect renters, landlords, and policymakers. For renters, higher vacancy rates mean more choices, greater negotiating power, and potentially slower rent growth. For landlords and investors, rising vacancies can pressure revenues and lead to concessions such as free months of rent. For local governments, vacancy rates help signal whether housing supply is keeping pace with population and job growth.

A rate above 7% is generally considered renter-friendly, while a rate below 5% indicates a landlord-favorable market. The 2026 national rate of 7.3% suggests renters have gained leverage in many markets, though conditions vary sharply by state and metro area.

Methodology

The U.S. Census Bureau’s Current Population Survey/Housing Vacancy Survey (CPS/HVS) is the primary official source for rental vacancy rates. It surveys a sample of housing units each quarter and asks whether units are occupied, vacant for rent, vacant for sale, or held off the market. The rental vacancy rate is the number of vacant year-round units available for rent divided by the total year-round rental stock.

State-level figures in this article come from Statista’s rental apartment vacancy index for March 2026, which may use a different methodology than the Census Bureau. The index values are presented as percentages but should be interpreted as relative indicators rather than exact Census vacancy rates. Additional context from Innago and The Real Deal is used for national and regional trends.

Limitations of the Data

State-level rental vacancy estimates can vary significantly depending on the source and methodology. The Statista index covers rental apartments specifically, while the Census Bureau includes all year-round rental units, including single-family rentals. Sample sizes for smaller states may be limited, leading to higher margins of error. Additionally, the March 2026 index does not include data for seven states, so national and regional comparisons should be made with caution.

Another limitation is timing: vacancy rates are a snapshot and can change quickly as new supply is delivered or absorbed. The national rate of 7.3% in Q2 2026 may not reflect conditions in every local market.

Historical Data

The U.S. rental market has undergone dramatic shifts since 2005. Following the 2008 financial crisis, vacancy rates rose as foreclosures added rental supply. The subsequent recovery brought years of tightening, with vacancy rates falling to historic lows in the early 2020s. The pandemic then disrupted migration and construction patterns, and the current building boom has reversed the trend.

• 2005–2007: Relatively balanced market with vacancy rates near 9–10% in some years.
• 2008–2012: Elevated vacancies due to housing crisis and weak demand.
• 2013–2019: Steady tightening as household formation recovered and construction lagged.
• 2020–2023: Pandemic-driven shortages and rent spikes in many markets.
• 2024–2026: Construction boom pushes vacancies higher, reaching 7.3% in 2026.

Source & Data Date

Primary source: U.S. Census Bureau, Current Population Survey/Housing Vacancy Survey (CPS/HVS), Q2 2026 data released July 2026. State-level ranking data: Statista, rental apartment vacancy index, March 2026. Additional context: Innago rental vacancy rates by state, May 2026, and The Real Deal analysis of Census data, July 30, 2026.