Shafiq Hirani CCIMReal Estate Advisor, REMAX Distinctive · Real Estate Advisor at RE/MAX Distinctive Commercial | Washington, DC | Your Guide To Profitable Real Estate Ventures

US Housing Market Shock: New Builds Steal Renters! #shorts

15 Aug 2026 · 1 min

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1:22

In this short video, two analysts discuss a paradox in the U.S. multifamily housing market: while overall vacancy rates appear to be improving, stabilized vacancy is actually rising in every major region. The key driver is the rapid leasing of new 4‑ and 5‑star luxury apartments, which accounted for about 111,000 units (≈68% of Q2 national absorption). These new properties are offering aggressive concessions—such as two months of free rent and waived fees—drawing renters away from older, established buildings. Austin is highlighted as a case study: vacancy in luxury units fell sharply, yet overall stabilized vacancy rose, indicating that new construction is cannibalizing existing inventory. The speakers conclude by questioning what investors and owners should do in response to this shift.

Chapters

Those 2 numbers are moving in opposite directions. And this is the critical part. Stabilized vacancy increased year over year in every major US region. Northeast, Pacific, South, Mountain, every one. Even in regions where overall vacancy improved. Read that again. The market looks like it is recovering because new buildings are leasing up. Established buildings are seeing vacancy go up, not down. The reason is straightforward: new properties are winning the renters. 4- and 5-star properties, the newest luxury inventory, accounted for more than 111,000 units of 2nd-quarter absorption. That is nearly 68% of all national absorption going into the newest, most expensive buildings.
Those buildings are offering concessions: 2 months free, waived fees, When a renter can get a brand new unit with a month or 2 free, that pulls demand away from established buildings, including yours. Austin is the clearest example. Vacancy across 4 and 5-star properties there fell 398 basis points year over year, but stabilized vacancy in Austin rose. The new buildings filled up by taking tenants from somewhere, and that somewhere was existing properties. So what do you actually do with this?