Rents Reach $1,962, Rising at the Fastest Pace in Over a Year (July Rent Report)
Demand is strong, supply is narrowing and rent growth is on the rise — even as nearly 2 in 5 listings still offer a concession.
- The Zillow Observed Rent Index (ZORI) shows the typical U.S. asking rent rose to $1,962 in July, up 2.3% annually — the fastest pace in more than a year.
- 39.8% of rentals on Zillow offered a concession in July, up from 35.9% a year ago.
- A household needs $78,488 in annual income to afford the typical U.S. rental, compared to nearly $99,800 to afford a typical mortgage payment — a gap of more than $21,000.
The wave of new apartments that gave renters more options and more deals over the past two years is beginning to recede. The typical U.S. asking rent rose to $1,962 in July, up 2.3% from a year ago, the fastest annual pace in over a year. Even as rent growth picked up speed, 2 in 5 listings still offered a concession, a lasting benefit of the construction boom.
What has changed isn’t demand; it’s supply. The historically large number of new apartments that hit the market over the past couple of years increased supply and gave renters room to negotiate. As that pipeline narrows, the market is gradually tightening — multifamily permits in the second quarter were 31% below their most recent peak in 2022.
As a result, rent growth is accelerating again and concession rates that climbed for two years are expected to ease.
Why concessions are holding and what it means
The 39.8% national concession rate is up nearly 4 percentage points from a year ago, driven by markets where supply came online fastest: Charlotte (68.1%), Denver (67.2%) and Dallas (65.6%) all top 65%. Even as rent growth accelerates, the share of listings offering a concession continues to rise, reflecting just how much new supply hit these markets in a short period of time. In markets that didn’t build as much, deals are scarce and rents are rising fast: San Francisco rents are up 9.7% year over year ($3,372), San Jose is up 7% ($3,782), and Chicago is up 5.1% ($2,253).
Elevated cost of homeownership keeps rental demand strong
The typical U.S. renter spends about 26.8% of their income on rent, below the 30% threshold traditionally considered a cost burden. Comfortably affording the typical rental requires $78,488 in annual income, compared to nearly $99,800 to afford a typical home purchase — a gap of more than $21,000 that has widened significantly as home prices and mortgage rates have climbed. With mortgage rates holding above 6.5%, a large share of would-be buyers are staying in the rental market, providing demand that isn’t going anywhere.
Single-family rent growth outpaces apartments
Single-family rents rose 3% to $2,314, far outpacing the 1.7% gain for multifamily units, which now sit at $1,786, reflecting how heavily new construction skewed toward apartments. As that inventory is absorbed, multifamily rent growth is expected to follow the single-family trend upward.
Zillow forecasts multifamily rents to rise around 1.9% for the full year, and single-family rents to increase closer to 2.9%. Both figures remain below the long-run historical average, even as growth reaccelerates from the unusually soft pace of the past two years. Concession rates are expected to ease gradually as the market tightens.
| Metro | Typical Rent, Zillow Observed Rent Index (ZORI) | Rent Year over Year | Concession Share | Renter Affordability |
| United States | $1,962 | 2.3% | 39.8% | 26.8% |
| New York, NY | $3,627 | 4.5% | 17.5% | 40.9% |
| Los Angeles, CA | $2,944 | 1.5% | 31.2% | 34.1% |
| Chicago, IL | $2,253 | 5.1% | 23.7% | 27.9% |
| Dallas, TX | $1,667 | 0.1% | 65.6% | 20.0% |
| Houston, TX | $1,654 | 0.0% | 55.7% | 22.8% |
| Washington, DC | $2,456 | 0.4% | 54.0% | 21.9% |
| Philadelphia, PA | $1,925 | 3.4% | 31.3% | 23.7% |
| Miami, FL | $2,677 | 1.4% | 28.6% | 37.1% |
| Atlanta, GA | $1,855 | 2.1% | 58.4% | 22.5% |
| Boston, MA | $3,165 | 2.6% | 28.4% | 29.9% |
| Phoenix, AZ | $1,727 | 0.3% | 61.3% | 21.5% |
| San Francisco, CA | $3,372 | 9.7% | 24.8% | 27.9% |
| Riverside, CA | $2,547 | 2.5% | 30.1% | 31.4% |
| Detroit, MI | $1,531 | 3.6% | 24.1% | 22.5% |
| Seattle, WA | $2,282 | 1.4% | 52.5% | 22.9% |
| Minneapolis, MN | $1,725 | 3.5% | 40.5% | 19.8% |
| San Diego, CA | $3,008 | 1.8% | 37.6% | 30.7% |
| Tampa, FL | $2,013 | -0.5% | 51.7% | 28.7% |
| Denver, CO | $1,930 | -0.9% | 67.2% | 20.0% |
| Baltimore, MD | $1,946 | 2.5% | 39.4% | 22.1% |
| St. Louis, MO | $1,445 | 4.3% | 29.2% | 19.9% |
| Orlando, FL | $1,959 | 0.6% | 55.2% | 27.1% |
| Charlotte, NC | $1,756 | 0.6% | 68.1% | 22.7% |
| San Antonio, TX | $1,425 | -1.8% | 56.8% | 20.4% |
| Portland, OR | $1,810 | 0.3% | 47.7% | 20.4% |
| Sacramento, CA | $2,296 | 1.7% | 32.8% | 26.0% |
| Pittsburgh, PA | $1,499 | 3.4% | 25.4% | 21.6% |
| Cincinnati, OH | $1,552 | 2.7% | 33.5% | 21.4% |
| Austin, TX | $1,647 | -0.9% | 65.1% | 18.7% |
| Las Vegas, NV | $1,747 | 0.2% | 57.9% | 24.4% |
| Kansas City, MO | $1,546 | 3.7% | 35.1% | 20.6% |
| Columbus, OH | $1,519 | 1.9% | 47.9% | 20.4% |
| Indianapolis, IN | $1,571 | 2.7% | 50.0% | 22.2% |
| Cleveland, OH | $1,476 | 4.3% | 24.7% | 23.6% |
| San Jose, CA | $3,782 | 7.0% | 22.2% | 25.5% |
| Nashville, TN | $1,820 | 0.6% | 63.0% | 23.0% |
| Virginia Beach, VA | $1,877 | 5.9% | 18.9% | 25.5% |
| Providence, RI | $2,180 | 3.6% | 11.4% | 30.1% |
| Jacksonville, FL | $1,711 | 1.4% | 50.2% | 23.5% |
| Milwaukee, WI | $1,545 | 4.7% | 19.7% | 22.3% |
| Oklahoma City, OK | $1,390 | 2.4% | 30.2% | 21.2% |
| Raleigh, NC | $1,683 | 0.5% | 65.4% | 18.4% |
| Memphis, TN | $1,422 | 1.2% | 40.3% | 23.5% |
| Richmond, VA | $1,751 | 2.7% | 47.8% | 23.8% |
| Louisville, KY | $1,357 | 1.8% | 43.3% | 20.5% |
| New Orleans, LA | $1,604 | 1.2% | 23.0% | 28.9% |
| Salt Lake City, UT | $1,647 | 0.5% | 66.5% | 18.4% |
| Hartford, CT | $2,020 | 2.8% | 21.4% | 24.1% |
| Buffalo, NY | $1,446 | 3.3% | 8.2% | 22.6% |
| Birmingham, AL | $1,456 | 1.4% | 39.9% | 21.6% |
Table ordered by market size.
Rents
- The typical asking rent is $1,962 in July, up 0.3% month-over-month. The pre-pandemic average month-over-month change for this time of year is 0.4%.
- Since the beginning of the pandemic, rents have increased by 38.3%.
- Rents are now 2.3% up from last year.
- Rents fell, on a monthly basis, in 3 major metro areas. The largest monthly drops are in Las Vegas (-0.1%), Boston (-0.1%), Sacramento (-0.1%), and Orlando (-0.1%).
- Rents are up from year-ago levels in 45 of the 50 largest metro areas. Annual rent increases are highest in San Francisco (9.7%), San Jose (7%), Virginia Beach (5.9%), Chicago (5.1%), and Milwaukee (4.7%).
Single-Family Rents
- The typical asking rent for single-family homes is $2,314 in July, up 0.2% month-over-month. Since the beginning of the pandemic, single-family rents have increased by 46.9%.
- Single-family rents are now up 3% from last year.
- Single-family rents fell, on a monthly basis, in 13 major metro areas. The largest monthly drops in single-family rents are in Buffalo (-0.5%), San Antonio (-0.4%), Riverside (-0.4%), Boston (-0.4%), and New Orleans (-0.3%).
- Single-family rents are up from year-ago levels in all of the largest metro areas. Annual single-family rent increases are highest in San Jose (6.2%), San Francisco (5.8%), Cleveland (5.3%), St. Louis (5.1%), and Milwaukee (4.6%).
Multifamily Rents
- The typical asking rent for multifamily homes is $1,786 in July, up 0.3% month-over-month. Since the beginning of the pandemic, multifamily rents have increased by 30%.
- Multifamily rents are now up 1.7% from last year.
- Multifamily rents fell, on a monthly basis, in 7 major metro areas. The largest monthly drops in multifamily rents are in Las Vegas (-0.3%), Louisville (-0.2%), Boston (-0.2%), Dallas (-0.1%), and Houston (-0.1%).
- Multifamily rents are up from year-ago levels in 34 of the 50 largest metro areas. Annual multifamily rent increases are highest in San Francisco (10.3%), San Jose (7.1%), Virginia Beach (6.3%), Chicago (5.1%), and Milwaukee (4.5%).
Rent Concessions
- 39.8% of rentals on Zillow offered concessions in July.
- The share of rental listings offering concessions increased by 0.1ppts month-over-month in July.
- The share of rental listings offering concessions increased by 3.8ppts from last year.
- The share of rentals with concessions is lower, on a monthly basis, in 20 major metro areas. The largest monthly drops in the share of rentals with concessions are in Memphis (-3ppts), Virginia Beach (-2.9ppts), Buffalo (-1.9ppts), San Jose (-1.5ppts), and Los Angeles (-1.3ppts).
- The share of rentals with concessions is higher, on a monthly basis, in 30 major metro areas. The largest monthly increases in the share of rentals with concessions are in New Orleans (3.7ppts), Indianapolis (3.1ppts), Salt Lake City (2.3ppts), Baltimore (1.7ppts), and Houston (1.7ppts).
- Rent concessions are up from year-ago levels in 43 of the 50 largest metro areas. The annual increase in share of rental listings with concessions is highest in Las Vegas (15.2ppts), Cincinnati (13.7ppts), Birmingham (10.3ppts), Salt Lake City (10.1ppts), and Indianapolis (9.4ppts).
Rent Affordability
- The median household would spend 26.8% of their income on a new rental in July.
- Rent affordability was flat month-over-month in July. The pre-pandemic share of median household income spent on rent was 26.2%.
- Rent affordability is now -0.2ppts down from last year.
- The most affordable metro areas for rents are Raleigh (18.4%), Salt Lake City (18.4%), Austin (18.7%), Minneapolis (19.8%), and St. Louis (19.9%).
- The least affordable metro areas for rents are New York (40.9%), Miami (37.1%), Los Angeles (34.1%), Riverside (31.4%), and San Diego (30.7%).
- Income needed to afford rent increased by 2.4% year-over-year in July to $78,488. Since pre-pandemic, the income needed to afford rent has increased by 36.7%.
