The rental market is recalibrating following years of rapid growth. In February, rents nationwide were up 1.9% from a year earlier. This is the slowest pace of annual growth since December 2020. The typical asking rent now stands at $1,895, according to the Zillow Observed Rent Index (ZORI).
The moderation is being driven by expanding supply. A boom in apartment construction has pushed vacancy rates higher and slowed multifamily rent growth to 1.4% annually, down from nearly 16% at the height of the 2022 rental frenzy.
Cooling conditions in the for-sale market are also contributing to rental supply. Late last year, a near-record number of homeowners who were unable to sell chose to rent out their properties instead. These “accidental landlords” are adding single-family homes to the rental pool. Single-family rents rose 2.6% year over year in February, the slowest annual growth in Zillow’s records dating back to 2015. For comparison, single-family rent growth averaged about 4.4% annually before the pandemic.
Renters are gaining leverage as new supply comes online, and that dynamic is expected to continue. As apartment construction expands and more single-family homes enter the rental market, property managers are increasingly competing on price and incentives.
Affordability improves, but pressures persist
As incomes have grown slightly faster than rents over the past year, affordability for new renters has modestly improved. A renter household that earns the median household income now spends 26.3% of its income on rent, down slightly from a year ago. Still, a household needs to earn about $76,000 annually to comfortably afford the typical rental, which is 35% higher than the income required before the pandemic.
The good news for renters: More rental options have boosted bargaining power and helped cool rent growth. Concessions remain common as well, with 39.2% of listings on Zillow offering incentives, such as free rent or waived fees. While that share is down slightly from a year ago, it remains elevated by historical standards.
Local markets move at different speeds
In February, the pace of annual rent increases decelerated in 34 markets when compared to the previous month.
Rents fell on a year-over-year basis in eight of the 50 largest U.S. markets, typically those that have absorbed large volumes of new supply. These include Austin (-2.4%), San Antonio (-1.6%), Tampa (-1.4%) and Denver (-1%). Some tighter markets are posting stronger gains. San Francisco leads with rents up 6.3% year over year, followed by Virginia Beach (5.7%) and Chicago (5.5%).
Among the 50 largest markets, Austin, San Antonio, Jacksonville, and Tampa had the highest vacancy rates at the end of 2025. Hartford, Boston, Denver, San Jose, and Providence had the lowest vacancy rates.
What’s ahead
Rent growth is projected to remain modest in 2026, with single-family rents forecast to rise 1.8% annually as of December 2026, and multifamily rents 0.9% over the same period. Elevated vacancy, continued apartment completions and more single-family homes entering the rental market are expected to keep national rent growth in check, although local conditions will vary.
| Metro Area | Typical Rent, Zillow Observed Rent Index (ZORI) | Typical Rent, Month-over-Month Change | Typical Rent, Year-over-Year Change | Renter Affordability (Share of Median Income Spent on Typical Rent) | Share of Rental Listings on Zillow Offering a Concession |
| United States | $1,895 | 0.4% | 1.9% | 26.3% | 39.2% |
| New York, NY | $3,258 | 0.5% | 4.2% | 37.1% | 19.0% |
| Los Angeles, CA | $2,884 | 0.2% | 1.1% | 33.9% | 30.0% |
| Chicago, IL | $2,132 | 0.9% | 5.5% | 26.8% | 22.0% |
| Dallas, TX | $1,630 | 0.3% | 0.2% | 19.9% | 61.8% |
| Houston, TX | $1,620 | -0.1% | -0.4% | 22.7% | 51.1% |
| Washington, DC | $2,331 | 0.5% | 0.2% | 21.1% | 56.1% |
| Philadelphia, PA | $1,859 | 0.6% | 3.1% | 23.3% | 32.9% |
| Miami, FL | $2,654 | 0.2% | 0.5% | 37.3% | 27.9% |
| Atlanta, GA | $1,808 | 0.2% | 1.6% | 22.3% | 56.2% |
| Boston, MA | $3,098 | 0.6% | 1.9% | 29.7% | 32.1% |
| Phoenix, AZ | $1,724 | 0.4% | -0.7% | 21.8% | 57.6% |
| San Francisco, CA | $3,103 | 1.1% | 6.3% | 25.9% | 30.4% |
| Riverside, CA | $2,478 | 0.4% | 1.7% | 30.9% | 28.1% |
| Detroit, MI | $1,461 | 0.2% | 2.4% | 21.8% | 27.0% |
| Seattle, WA | $2,181 | 0.2% | 1.8% | 22.2% | 53.9% |
| Minneapolis, MN | $1,664 | 0.6% | 4.0% | 19.4% | 40.7% |
| San Diego, CA | $2,871 | 0.5% | 1.6% | 29.8% | 36.5% |
| Tampa, FL | $1,976 | 0.3% | -1.4% | 28.6% | 49.9% |
| Denver, CO | $1,844 | 0.3% | -1.0% | 19.4% | 68.6% |
| Baltimore, MD | $1,857 | 0.3% | 2.5% | 21.5% | 39.3% |
| St. Louis, MO | $1,395 | 0.2% | 3.5% | 19.5% | 26.4% |
| Orlando, FL | $1,922 | 0.3% | 0.2% | 27.0% | 51.1% |
| Charlotte, NC | $1,716 | 0.3% | 0.5% | 22.6% | 64.1% |
| San Antonio, TX | $1,392 | 0.2% | -1.6% | 20.2% | 54.8% |
| Portland, OR | $1,779 | 0.3% | 0.9% | 20.4% | 49.6% |
| Sacramento, CA | $2,211 | 0.2% | 2.1% | 25.4% | 31.6% |
| Pittsburgh, PA | $1,446 | 0.2% | 3.8% | 21.1% | 26.9% |
| Cincinnati, OH | $1,536 | 0.7% | 3.5% | 21.5% | 24.2% |
| Austin, TX | $1,563 | 0.5% | -2.4% | 17.9% | 63.6% |
| Las Vegas, NV | $1,720 | 0.4% | -0.1% | 24.5% | 52.9% |
| Kansas City, MO | $1,481 | 0.4% | 3.5% | 20.1% | 37.1% |
| Columbus, OH | $1,484 | 0.5% | 1.7% | 20.3% | 45.3% |
| Indianapolis, IN | $1,486 | 0.1% | 2.6% | 21.3% | 44.2% |
| Cleveland, OH | $1,394 | 0.8% | 5.0% | 22.6% | 27.8% |
| San Jose, CA | $3,431 | 0.7% | 5.1% | 23.2% | 34.6% |
| Nashville, TN | $1,777 | 0.2% | 0.2% | 22.8% | 62.1% |
| Virginia Beach, VA | $1,787 | 0.5% | 5.7% | 24.6% | 27.6% |
| Providence, RI | $2,095 | 0.7% | 4.8% | 29.1% | 13.2% |
| Jacksonville, FL | $1,666 | 0.5% | 0.7% | 23.1% | 47.3% |
| Milwaukee, WI | $1,484 | 0.2% | 3.5% | 21.8% | 29.5% |
| Oklahoma City, OK | $1,359 | 0.4% | 2.6% | 21.1% | 29.7% |
| Raleigh, NC | $1,651 | 0.4% | 0.2% | 18.4% | 62.8% |
| Memphis, TN | $1,421 | -0.2% | 1.2% | 23.8% | 38.8% |
| Richmond, VA | $1,658 | 0.7% | 3.9% | 22.8% | 45.7% |
| Louisville, KY | $1,361 | 0.0% | 1.9% | 20.9% | 41.1% |
| New Orleans, LA | $1,577 | 0.3% | 0.2% | 28.8% | 16.1% |
| Salt Lake City, UT | $1,599 | 0.1% | -0.7% | 18.1% | 67.6% |
| Hartford, CT | $1,886 | -0.1% | 2.5% | 22.8% | 24.1% |
| Buffalo, NY | $1,374 | 0.5% | 3.6% | 21.7% | 9.5% |
| Birmingham, AL | $1,406 | 0.2% | 1.6% | 21.1% | 40.8% |
*Table ordered by market size