Housing Research Brief

Slowing household formation constrains apartment absorption. While the U.S. labor market added more jobs in the opening stretch of 2026 than in any quarter since late 2024, trailing 12-month hiring marked one of the weakest non-recessionary periods in recent history. The 2026 forecast at just 0.2 percent growth represents less than a fifth of the long-term average. Coupled with slowing net international migration, these factors are weighing on household formation, a key driver of housing demand.