Rent affordability hits four-year high, with further relief ahead
New Zillow forecast projects more breathing room for renters in 2026
- Rents are holding steady, with the typical asking rent at
$1,895 in January, relatively flat compared to December (up 0.1%) and up 2% year over year. - Affordability is improving, with the typical household now spending 26.4% of income on rent — the lowest share since
August 2021 . - Zillow forecasts single-family rents to rise 1.1% at the end of 2026, while multifamily rents remain relatively flat (-0.2%) as elevated vacancies and new supply continue to weigh on prices.
The typical
Multifamily renters are seeing even more improvement. Apartment rents rose just 1.4% from a year ago amid a historic construction boom, while incomes increased at a faster pace. As a result, affordability for apartment renters who earn the median household income has improved beyond pre-pandemic levels: A median-income household would now spend 24.3% of its income on the typical apartment rent, down slightly from 25% in
"Renters are operating in a very different environment than they were just a few years ago," said Orphe Divounguy, senior economist at Zillow. "When supply expands and vacancies rise, property managers have to adjust on both price and terms. Concessions are near record highs, keeping rent growth modest and creating meaningful opportunities for renters."
Much of the shift comes down to supply. Although the flow of newly completed apartment buildings peaked in the summer of 2024, more buildings are still being added to the stock of available rental units. At the same time, a cooling labor market is helping keep the number of vacancies elevated. With more options available, renters now have more negotiating power for renewals and new leases than they have had in a long time.
Flexibility in lease terms is another sign of the shift. In January, just below 40% of rental listings on Zillow included at least one concession, such as a free month of rent or a reduced deposit. Though slightly below last January's record high of 41.1%, that share remains elevated compared to historical norms, underscoring the degree to which property managers are competing for tenants.
Single-family rents have been rising faster than apartment rents for several years, largely because the single-family construction boom was less pronounced. At the same time, demand for single-family rental housing remained high as flows into homeownership stayed somewhat subdued.
Even so, Zillow's forecast calls for single-family rents to cool further in 2026. In January, the typical single-family rent was up 2.7% from a year ago. Looking ahead, Zillow expects growth in single-family rents to remain modest, forecasting a 1.1% annual increase in
|
Metro Area |
Typical Rent, |
Typical Rent, |
Typical Rent, |
Renter |
Share of Rental |
|
|
|
0.1 % |
2.0 % |
26.4 % |
38.8 % |
|
|
|
-0.1 % |
4.3 % |
36.9 % |
19.2 % |
|
|
|
0.1 % |
1.6 % |
34.0 % |
29.5 % |
|
|
|
0.5 % |
5.4 % |
26.4 % |
23.1 % |
|
|
|
-0.1 % |
0.3 % |
20.0 % |
61.8 % |
|
|
|
-0.1 % |
0.0 % |
22.6 % |
48.7 % |
|
|
|
0.1 % |
0.4 % |
21.1 % |
55.6 % |
|
|
|
0.1 % |
2.9 % |
23.2 % |
31.6 % |
|
|
|
0.0 % |
0.5 % |
37.2 % |
27.6 % |
|
|
|
0.1 % |
2.1 % |
22.3 % |
56.1 % |
|
|
|
0.5 % |
1.8 % |
29.4 % |
33.1 % |
|
|
|
0.1 % |
-0.6 % |
21.7 % |
58.0 % |
|
|
|
0.4 % |
5.8 % |
25.6 % |
31.6 % |
|
|
|
0.2 % |
1.8 % |
30.8 % |
28.4 % |
|
|
|
0.2 % |
2.8 % |
21.8 % |
28.6 % |
|
|
|
-0.1 % |
2.2 % |
22.2 % |
53.1 % |
|
|
|
0.1 % |
4.2 % |
19.4 % |
39.8 % |
|
|
|
0.1 % |
1.3 % |
29.8 % |
37.2 % |
|
|
|
-0.1 % |
-1.2 % |
28.8 % |
49.5 % |
|
|
|
-0.1 % |
-1.1 % |
19.4 % |
67.9 % |
|
|
|
0.4 % |
2.6 % |
21.5 % |
38.2 % |
|
|
|
0.3 % |
3.6 % |
19.7 % |
22.5 % |
|
|
|
0.2 % |
0.5 % |
26.9 % |
51.7 % |
|
|
|
0.0 % |
0.7 % |
22.5 % |
61.6 % |
|
|
|
0.0 % |
-1.2 % |
20.1 % |
54.3 % |
|
|
|
-0.2 % |
0.9 % |
20.4 % |
48.4 % |
|
|
|
-0.2 % |
1.9 % |
25.3 % |
31.8 % |
|
|
|
0.4 % |
4.1 % |
21.2 % |
27.4 % |
|
|
|
0.4 % |
2.7 % |
21.3 % |
22.8 % |
|
|
|
0.0 % |
-2.6 % |
17.9 % |
62.9 % |
|
|
|
0.0 % |
0.1 % |
24.5 % |
51.7 % |
|
|
|
0.2 % |
3.8 % |
19.8 % |
34.3 % |
|
|
|
-0.3 % |
1.6 % |
19.9 % |
46.3 % |
|
|
|
0.2 % |
3.2 % |
21.7 % |
41.4 % |
|
|
|
0.6 % |
4.2 % |
22.6 % |
27.9 % |
|
|
|
0.3 % |
5.1 % |
23.1 % |
39.3 % |
|
|
|
-0.1 % |
0.4 % |
22.8 % |
62.1 % |
|
|
|
0.4 % |
5.4 % |
24.8 % |
28.3 % |
|
|
|
0.1 % |
4.5 % |
29.0 % |
12.6 % |
|
|
|
-0.1 % |
0.2 % |
23.1 % |
46.3 % |
|
|
|
0.2 % |
3.9 % |
21.4 % |
29.8 % |
|
|
|
0.1 % |
2.7 % |
20.9 % |
28.8 % |
|
|
|
0.1 % |
0.2 % |
18.5 % |
63.5 % |
|
|
|
-0.1 % |
1.7 % |
23.7 % |
36.7 % |
|
|
|
0.5 % |
3.5 % |
22.6 % |
43.8 % |
|
|
|
0.2 % |
2.2 % |
20.8 % |
36.9 % |
|
|
|
0.3 % |
0.4 % |
28.7 % |
18.4 % |
|
|
|
-1.1 % |
-0.3 % |
17.9 % |
67.3 % |
|
|
|
0.0 % |
3.1 % |
22.6 % |
23.4 % |
|
|
|
0.6 % |
3.4 % |
21.6 % |
8.5 % |
|
|
|
-0.1 % |
1.9 % |
20.9 % |
40.9 % |
|
*Table ordered by market size |
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SOURCE Zillow
