• The typical U.S. asking rent rose to $1,965 in June, up 2.2% annually, according to the Zillow Observed Rent Index.
• 39.7% of rentals on Zillow offered a concession in June, up from 35.2% a year ago.
• Sun Belt renters have more options and more deals than the rest of the country, the direct result of a years-long building boom.

Fewer apartments are sitting empty, rents are climbing, and yet the deals keep coming. The typical U.S. asking rent rose to $1,965, up 2.2% compared to a year ago, and nearly 2 in 5 rental listings came with a concession attached. For property managers, that means pricing power isn’t back yet.

A concession is a move-in discount, commonly a free month’s rent, waived fees or free parking. For renters who land a freebie, the real cost of renting can be softer than the asking price suggests. The 2.2% annual rent growth in June is a slight acceleration from the previous month. Yet the increase in concessions — 39.7% of rental listings on Zillow offered one in June, up from 35.2% a year ago — softens the blow for renters.

The backdrop is a rental market that has added significant new inventory over the past few years, giving renters more choices. Meanwhile, the cost of buying a home remains high, keeping many in the rental market longer. That combination is driving both trends: enough demand to keep absorption elevated and sufficient supply to keep the rental vacancy rate elevated.

The payoff from recent construction activity is now clearly benefiting renters. Housing supply remains the most direct long-term lever for keeping rents in check, and markets that invested in new housing are rewarding renters with more choices, better concessions, and more competitive pricing. Areas that fell short on development are now seeing the consequences in their rent growth and affordability numbers.

The rental market is expected to tighten

Rent growth has been consistent this spring: April, May and June all posted stronger month-over-month gains than the same months in 2025. 

The rapid climb in the number of available rental units is slowing, in large part because the apartment construction wave that flooded the market is finally receding: building completions fell further in the second quarter, while net absorption continued to increase.

With demand holding steady and the flow of new apartments slowing, conditions are expected to tighten gradually across the country. That means the elevated concession rates renters are seeing today reflect a market still working through its inventory. As that process plays out, deals are expected to become less common even as rent growth stays measured.

Where deals are most common

The markets with the highest concession rates are where the most new apartments were built and where renters have the most options today. Charlotte (67.1%), Denver (65.9%) and Dallas (64.6%) top the list. Rents have declined in San Antonio (-1.8% to $1,416), Austin (-1.7% to $1,653) and Denver (-1.3% to $1,930) over the past year. In these markets, renters are seeing the direct benefit of the new supply that has come online.

Where the market is tightest, rents are rising fastest. San Francisco leads the nation in rent growth, up 8.2% annually to $3,301, with just 24.9% of listings offering a concession. San Jose rents rose 6.2% to $3,729, while Chicago rents climbed 5.2% to $2,275. For renters in these markets, the window to negotiate is considerably narrower.

Single-family rents increase twice as much as apartment rents

Single-family rents rose 3% year over year to $2,320, roughly double the 1.5% gain for multifamily units, now at $1,789. A disproportionately larger increase in the number of apartment units gave renters in that segment more options to choose from, also pulling down rent growth when compared to single-family rentals.

Looking ahead, rent growth is expected to remain moderate. Zillow forecasts single-family rents to rise 3.1%, and multifamily rents to increase 2% for 2026, roughly in line with 2025. For renters, that means the deals available today are unlikely to disappear overnight, but as new supply is absorbed, conditions could begin to gradually tighten.

*Table ordered by market size 

Rents

• The typical asking rent is $1,965 in June, up 0.4% month-over-month. The pre-pandemic average month-over-month change for this time of year is 0.6%.
• Since the beginning of the pandemic, rents have increased by 38%.
• Rents are now 2.2% up from last year.
• Rents fell, on a monthly basis, in 2 major metro areas. The largest monthly drops are in Louisville (-0.1%) and San Antonio (-0.1%).
• Rents are up from year-ago levels in 44 of the 50 largest metro areas. Annual rent increases are highest in San Francisco (8.2%), San Jose (6.2%), Virginia Beach (5.5%), Chicago (5.2%), and New York (4.5%).

Single-Family Rents

• The typical asking rent for single-family homes is $2,320 in June, up 0.4% month-over-month. Since the beginning of the pandemic, single-family rents have increased by 46.7%.
• Single-family rents are now up 3% from last year.
• Single-family rents fell, on a monthly basis, in 1 major metro area: Providence (-1.1%).
• Single-family rents are up from year-ago levels in all 50 of the largest metro areas. Annual single-family rent increases are highest in San Jose (6%), Buffalo (5.1%), Milwaukee (4.9%), Cleveland (4.8%), and San Francisco (4.8%).

Multifamily Rents

• The typical asking rent for multifamily homes is $1,789 in June, up 0.4% month-over-month. Since the beginning of the pandemic, multifamily rents have increased by 29.7%.
• Multifamily rents are now up 1.5% from last year.
• Multifamily rents fell, on a monthly basis, in 4 major metro areas. The largest monthly drops in multifamily rents are in Louisville (-0.2%), San Antonio (-0.2%), Miami (-0.1%), and Tampa (-0.1%).
• Multifamily rents are up from year-ago levels in 33 of the 50 largest metro areas. Annual multifamily rent increases are highest in San Francisco (8.5%), San Jose (6.1%), Virginia Beach (5.7%), Chicago (5.1%), and New York (4.5%).

Rent Concessions

• 39.7% of rentals on Zillow offered concessions in June.
• The share of rental listings offering concessions increased by 0.2ppts month-over-month in June.
• The share of rental listings offering concessions increased by 4.5ppts from last year.
• The share of rentals with concessions is lower, on a monthly basis, in 24 major metro areas. The largest monthly drops in the share of rentals with concessions are in San Jose (-5.8ppts), Virginia Beach (-3.3ppts), Milwaukee (-2.6ppts), Indianapolis (-1.8ppts), and Columbus (-1.8ppts).
• The share of rentals with concessions is higher, on a monthly basis, in 26 major metro areas. The largest monthly increases in the share of rentals with concessions are in Las Vegas (4.1ppts), Cincinnati (2.8ppts), Chicago (2.7ppts), St. Louis (2.7ppts), and Louisville (2.5ppts).
• Rent concessions are up from year-ago levels in 44 of the 50 largest metro areas. The annual increase in share of rental listings with concessions is highest in Las Vegas (15.5ppts), Birmingham (14.8ppts), Cincinnati (12.6ppts), Tampa (11.3ppts), and Louisville (11.1ppts).

Rent Affordability

• The median household would spend 27% of their income on a new rental in June.
• Rent affordability was flat in June. The pre-pandemic share of median household income spent on rent was 26.3%.
• Rent affordability is now -0.2ppts down from last year.
• The most affordable metro areas for rents are Salt Lake City (18.4%), Raleigh (18.6%), Austin (18.8%), Minneapolis (19.9%), and Denver (20.1%).
• The least affordable metro areas for rents are New York (40.5%), Miami (37.5%), Los Angeles (34.1%), Riverside (31.4%), and San Diego (30.7%).
• Income needed to afford rent increased by 2.1% year-over-year in June to $78,600. Since pre-pandemic, the income needed to afford rent has increased by 36.3%.