• A new renter household earning the median income would have spent 26.5% of their household income on the typical U.S. asking rent in December, the lowest share since August 2021.
• The typical asking rent nationwide fell 0.2% month over month to $1,901. 
• Renters maintained negotiating power as concessions reached a record high, with 39.5% of rental listings offering incentives in December.

Renters ended 2025 amid the most affordable conditions in more than four years. Annual rent growth eased to 2.1% in December, down from 2.2% the prior month. Slower rent growth and widespread rent concessions helped ease pressure on renter household budgets. 

Affordability Improves as Rent Growth Slows

In December, the typical U.S. asking rent dipped 0.2% to $1,901. The median household would have spent 26.5% of its income on that typical rent payment, the lowest share since August 2021. This improvement reflects slower rent growth alongside continued income gains, supported in part by a persistently high rental vacancy rate. 

Despite recent improvements in affordability, the share of income spent on rent remains above the pre-pandemic average level of 25.6% of income, though it has improved meaningfully from a peak of 27.6% in May 2023, bringing conditions closer to historical norms.

In December, a household needed to earn $76,020 annually to comfortably afford the typical rental. The income needed to keep rent affordable has increased by roughly 35% during the pandemic.

Apartment Rents Drive Most of the Improvement in Affordability

Apartment rents continued to ease in December, with the typical multifamily rent falling to $1,741, down 0.3% from November but still 1.5% higher than a year ago. Elevated supply has helped to pull apartment rents lower.

Apartment rents declined year over year in 16major metro areas, led by Austin (-4.1%), Denver (-2.4%) and Tampa (-2%). Annual rent growth remains strongest in Virginia Beach (5.7%), San Francisco (5.5%) and Chicago (5.3%).

Single-Family Rents Remain More Resilient

Single-family rents held somewhat steady (-0.02%) in December at $2,181, and were 2.8% higher than a year ago. 

Single-family rents increased from a year ago in all 50 major metro areas, led by Milwaukee (6.1%), Providence (6.0%), and Cleveland (5.7%).

Since the start of the pandemic, single-family rents have risen 43.6%, far outpacing the 26.7% increase in apartment rents over that same period. This is consistent with a relatively higher supply of apartments when compared to single-family rental units.

Record-High Concessions Keep Renters in a Strong Position

Renters maintained strong negotiating power in December, as concessions reached a record high, with 39.5% of rental listings on Zillow offering incentives. The widespread use of concessions reflects persistently high vacancy rates and stiff competition among landlords.

With incentives so common, renters have more room to negotiate, helping support recent improvements in affordability.

Looking Ahead

Looking ahead to 2026, Zillow’s forecast suggests rent growth will continue to cool. Multifamily rents are expected to remain essentially flat, rising just 0.2%, as elevated vacancies and a steady flow of new apartment supply limit price growth.

Single-family rents are also projected to moderate further, rising just  1.6% in 2026. Together, these trends indicate a rental market that is expected to continue cooling from recent highs and shift toward a more balanced pace of growth.

Rents

• The typical asking rent is $1,901 in December, down 0.2% month-over-month. This is compared to an increase in rents this time of year before the pandemic.
• Rents are now up 2.1% from last year.
• Since the beginning of the pandemic, rents have increased by 35%.
• Rents fell, on a monthly basis, in 37 major metro areas. The largest monthly drops are in Denver (-0.8%), Salt Lake City (-0.8%), San Antonio (-0.6%), Columbus (-0.6%), and Portland (-0.6%).
• Rents are up from year-ago levels in 45 of the 50 largest metro areas. Annual rent increases are highest in San Francisco (5.7%), Virginia Beach (5.4%), Chicago (5.2%), Providence (5.1%), and San Jose (4.9%).

Single-Family Rents

• The typical asking rent for single-family homes is $2,181 in December, holding roughly flat (-0.02%) month over month. 
• Single-family rents are now up 2.8% from last year.
• Since the beginning of the pandemic, single-family rents have increased by 43.6%.
• Single-family rents fell, on a monthly basis, in 27 major metro areas. The largest monthly drops in single-family rents are in Jacksonville (-0.7%), Portland (-0.6%), Orlando (-0.4%), Washington (-0.3%), and San Antonio (-0.3%).
• Single-family rents are up from year-ago levels in each of the 50 largest metro areas. Annual single-family rent increases are highest in Milwaukee (6.1%), Providence (6%), Cleveland (5.7%), Kansas City (5.1%), and Indianapolis (5%).

Multifamily Rents

• The typical asking rent for multifamily homes is $1,741 in December, down 0.3% month-over-month. 
• Multifamily rents are now up 1.5% from last year.
• Since the beginning of the pandemic, multifamily rents have increased by 26.7%.
• Multifamily rents fell, on a monthly basis, in 36 major metro areas. The largest monthly drops in multifamily rents are in Salt Lake City (-1.1%), Denver (-0.9%), Columbus (-0.9%), San Antonio (-0.7%), and Portland (-0.6%).
• Multifamily rents are up from year-ago levels in 34 of the 50 largest metro areas. Annual multifamily rent increases are highest in Virginia Beach (5.7%), San Francisco (5.5%), Chicago (5.3%), Providence (5.1%), and New York (4.7%).

Rent Concessions

• 39.5% of rentals on Zillow offered concessions in December.
• The share of rental listings offering concessions increased by 0.1ppts month over month in December.
• The share of rental listings offering concessions decreased by 1.4ppts from last year.
• The share of rentals with concessions is lower, on a monthly basis, in 26 major metro areas. The largest monthly drops in the share of rentals with concessions are in Indianapolis (-3.1ppts), Milwaukee (-2.4ppts), Minneapolis (-2.3ppts), Baltimore (-1.9ppts), and Virginia Beach (-1.9ppts).
• The share of rentals with concessions is higher, on a monthly basis, in 24 major metro areas. The largest monthly increases in the share of rentals with concessions are in Pittsburgh (4.4ppts), Memphis (3.6ppts), Kansas City (3ppts), Louisville (2.5ppts), and Salt Lake City (1.9ppts).
• Rent concessions are up from year-ago levels in 21 of the 50 largest metro areas. The annual increase in share of rental listings with concessions is highest in Las Vegas (10ppts), Columbus (9.3ppts), Tampa (7.8ppts), Birmingham (6.1ppts), and Salt Lake City (4.9ppts).

Rent Affordability

• The median household would spend 26.5% of their income on a new rental in December.
• Rent affordability was flat month over month in December. The pre-pandemic share of median household income spent on rent was 25.6%.
• Rent affordability has now improved by 0.3ppts from last year.
• The most affordable metro areas for rents, relative to local incomes, are Austin (18.1%), Salt Lake City (18.2%), Raleigh (18.6%), Minneapolis (19.6%), and Denver (19.6%).
• The least affordable metro areas for rents, relative to local incomes, are Miami (37.4%), New York (37.0%), Los Angeles (34.1%), Riverside (31.0%), and San Diego (30.0%).
• Income needed to afford rent increased by 2.2% year over year in December to $76,020. Since before the pandemic, the income needed to afford rent has increased by 35.4%.