• Rents are holding steady, with the typical asking rent at $1,895 in January, relatively flat compared to December (+0.1%) and up 2% year over year.
• Affordability is improving, with the typical renter now spending 26.4% of income on rent — the lowest share since August 2021.
• Zillow forecasts single-family rents to rise 1.8% in 2026, while multifamily rents remain relatively flat (0.6%) as elevated vacancies and new supply continue to weigh on prices. 

After several years marked by sharp rent increases and intense competition, the rental market has entered a more balanced phase — one defined by stability rather than scarcity. Rent affordability is the best it’s been since August 2021, and a new forecast from Zillow offers the promise of further improvements in the year ahead. 

The typical U.S. asking rent in January was $1,895, according to the Zillow Observed Rent Index, essentially unchanged from December and up 2% from a year earlier. That is the slowest annual rent growth since December 2020 as the market has settled into a steadier pace after the rapid increases seen during the pandemic housing boom. 

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 income on the typical apartment rent, down slightly from 25% in February 2020. With Zillow forecasting multifamily rents to remain essentially flat (0.6%) in 2026, affordability could improve further by year’s end.

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 adding 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. Just below 40% of rental listings on Zillow included at least one concession in January, 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 1.8% increase in 2026 as higher vacancies and broader market shifts keep rent growth in check.

Rents

• The typical asking rent is $1,895 in January, up 0.1% month-over-month. The pre-pandemic average month-over-month change for this time of year is 0.3%.
• Since the beginning of the pandemic, rents have increased by 35%.
• Rents are now 2% up from last year.
• Rents fell, on a monthly basis, in 19 major metro areas. The largest monthly drops are in Salt Lake City (-1.1%), Columbus (-0.3%), Portland (-0.2%), Sacramento (-0.2%), and Denver (-0.1%).
• Rents are up from year-ago levels in 43 of the 50 largest metro areas. Annual rent increases are highest 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 asking rent for single-family homes is $2,186 in January, up 0.2% month-over-month. Since the beginning of the pandemic, single-family rents have increased by 43.8%.
• Single-family rents are now up  2.7% from last year.
• Single-family rents fell, on a monthly basis, in 10 major metro areas. The largest monthly drops in single-family rents are in Salt Lake City (-0.6%), Tampa (-0.4%), Birmingham (-0.4%), Austin (-0.3%), and Sacramento (-0.3%).
• Single-family rents are up from year-ago levels in 48 of the 50 largest metro areas. Annual single-family rent increases are highest in Milwaukee (6.7%), Cleveland (5.5%), Pittsburgh (4.9%), Chicago (4.7%), and St. Louis (4.5%).

Multifamily Rents

• The typical asking rent for multifamily homes is $1,745 in January, up 0.1% month-over-month. Since the beginning of the pandemic, multifamily rents have increased by 26.8%.
• Multifamily rents are now up 1.4% from last year.
• Multifamily rents fell, on a monthly basis, in 16 major metro areas. The largest monthly drops in multifamily rents are in Salt Lake City (-1.1%), Columbus (-0.5%), Memphis (-0.5%), Hartford (-0.3%), and Portland (-0.3%).
• Multifamily rents are up from year-ago levels in 35 of the 50 largest metro areas. Annual multifamily rent increases are 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 rentals on Zillow offered concessions in January.
• The share of rental listings offering concessions decreased by 0.6ppts month-over-month in January.
• The share of rental listings offering concessions decreased by 2.3ppts from last year.
• The share of rentals with concessions is lower, on a monthly basis, in 35 major metro areas. The largest monthly drops in the share of rentals with concessions are in San Jose (-6.4ppts), Richmond (-4.3ppts), Louisville (-3.5ppts), Cincinnati (-3.2ppts), and St. Louis (-3.1ppts).
• The share of rentals with concessions is higher, on a monthly basis, in 15 major metro areas. The largest monthly increases in the share of rentals with concessions are in Birmingham (3.3ppts), Detroit (1.4ppts), Indianapolis (1.1ppts), New Orleans (1ppts), and Houston (0.9ppts).
• Rent concessions are up from year-ago levels in 19 of the 50 largest metro areas. The annual increase in share of rental listings with concessions is highest in Birmingham (11.1ppts), Las Vegas (9.3ppts), Columbus (8.1ppts), Tampa (8.1ppts), and Salt Lake City (6.7ppts).

Rent Affordability

• The median household would spend 26.4% of their income on a new rental in January.
• Rent affordability decreased by 0.1ppts month-over-month in January. The pre-pandemic share of median household income spent on rent was 25.6%.
• Rent affordability is now 0.4ppts down from last year.
• The most affordable metro areas for rents are Austin (17.9%), Salt Lake City (17.9%), Raleigh (18.4%), Minneapolis (19.4%), and Denver (19.4%).
• The least affordable metro areas for rents are Miami (37.2%), New York (36.9%), Los Angeles (34%), Riverside (30.8%), and San Diego (29.8%).
• Income needed to afford rent increased by 1.9% year-over-year in January to $75,793. Since pre-pandemic, the income needed to afford rent has increased by 35.4%.