Zillow: US rent growth slows as affordability improves

U.S. rent growth has slowed to its weakest pace in more than four years, pushing affordability to its best level since 2021, Zillow says.

By the numbers:

The typical U.S. asking rent was $1,895 in January, flat from December and up 2% from a year earlier — the slowest annual growth since December 2020, according to Zillow.

The shift is largely driven by supply: Even after construction peaked in summer 2024, new apartments continue to come online, while a cooling labor market keeps vacancies elevated — giving renters more leverage on new leases and renewals.

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Lease flexibility is another sign of the shift: Nearly 40% of Zillow listings in January offered concessions such as a free month or reduced deposit — still historically high and a sign of intense competition for tenants.

Single-family rents have outpaced apartment rents for years, driven by more limited construction and steady demand as fewer renters transition into homeownership.

Zillow expects single-family rent growth to cool further in 2026. Rents were up 2.7% year over year in January, but are forecast to rise a more modest 1.8% next year as higher vacancies and broader market shifts temper gains.

Dig deeper:

Rents

• The typical asking rent was $1,895 in January, up 0.1% from December (below the pre-pandemic average 0.3% gain for this time of year).
• Rents are up 2% from a year ago and 35% since the start of the pandemic.
• Monthly rents declined in 19 major metros, led by Salt Lake City (-1.1%), Columbus (-0.3%), Portland (-0.2%), Sacramento (-0.2%) and Denver (-0.1%).
• Rents rose year over year in 43 of the 50 largest metros, with the biggest gains in San Francisco (5.8%), Chicago (5.4%), Virginia Beach (5.4%), San Jose (5.1%) and Providence (4.5%).

Single-family rents

• The typical single-family rent was $2,186 in January, up 0.2% month over month and 2.7% year over year.
• Since the pandemic began, single-family rents have climbed 43.8%.
• Monthly declines were recorded in 10 major metros, led by Salt Lake City (-0.6%), Tampa (-0.4%), Birmingham (-0.4%), Austin (-0.3%) and Sacramento (-0.3%).
• Rents rose annually in 48 of the 50 largest metros, with the fastest growth in Milwaukee (6.7%), Cleveland (5.5%), Pittsburgh (4.9%), Chicago (4.7%) and St. Louis (4.5%).

Multifamily rents

• The typical multifamily rent was $1,745 in January, up 0.1% from December and 1.4% from a year earlier.
• Multifamily rents have increased 26.8% since the start of the pandemic.
• Rents fell month over month in 16 major metros, led by Salt Lake City (-1.1%), Columbus (-0.5%), Memphis (-0.5%), Hartford (-0.3%) and Portland (-0.3%).
• Annual gains were recorded in 35 of the 50 largest metros, highest in Virginia Beach (6.2%), San Francisco (5.6%), Chicago (5.5%), San Jose (4.9%) and Providence (4.9%). 

Rent concessions

• 38.8% of Zillow listings offered concessions in January, down 0.6 percentage points from December and 2.3 points from a year ago.
• Concessions declined month over month in 35 major metros, with the largest drops in San Jose (-6.4 ppts), Richmond (-4.3), Louisville (-3.5), Cincinnati (-3.2) and St. Louis (-3.1).
• They increased in 15 metros, led by Birmingham (3.3 ppts), Detroit (1.4), Indianapolis (1.1), New Orleans (1.0) and Houston (0.9).
• Compared with a year ago, concessions are higher in 19 of the 50 largest metros, with the biggest increases in Birmingham (11.1 ppts), Las Vegas (9.3), Columbus (8.1), Tampa (8.1) and Salt Lake City (6.7).

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Rent affordability

• A median-income household would spend 26.4% of income on a new rental in January, up 0.1 percentage point from December but down 0.4 points from a year ago.
• Before the pandemic, the typical share was 25.6%.
• The most affordable major markets are Austin (17.9%), Salt Lake City (17.9%), Raleigh (18.4%), Minneapolis (19.4%) and Denver (19.4%).
• The least affordable are Miami (37.2%), New York (36.9%), Los Angeles (34%), Riverside (30.8%) and San Diego (29.8%).
• The income needed to afford rent rose 1.9% year over year to $75,793 and is up 35.4% since before the pandemic.