• The typical U.S. asking rent was $1,910 in March, up 1.8% year over year, according to the Zillow Observed Rent Index (ZORI). That is the slowest annual pace since 2020.
• Single-family rents rose 2.5% annually to $2,225, the slowest growth ever recorded in Zillow’s series. Multifamily rents rose 1.3% to $1,757.
• Renters are saving more than $3,000 a year in Austin ($3,182), Tampa ($3,110) and Denver ($3,002).

Renters are breathing easier with income growth outpacing rent hikes, putting an extra $193 back in the typical household’s pocket each month. That’s $2,318 more a year for groceries and gas — or a head start on a down payment.

The typical asking rent rose just 1.8% year over year to $1,910, the slowest annual pace since 2020. Single-family rents climbed 2.5% year over year to $2,225, the slowest annual growth ever recorded in Zillow’s data series, while multifamily rents rose 1.3% to $1,757. 

Across both segments, rent growth is running below income growth, easing the financial pressure renters have faced since the pandemic-era surge.

The savings are being felt across the country, though the amount varies by market. Renters in Austin are seeing the biggest annual gains, with roughly $3,182 more compared to a year ago after factoring in income growth and rent declines. Tampa renters are close behind at $3,110 annually, followed by Denver at $3,002. 

Even in higher-cost markets, renters are coming out ahead: Los Angeles renters have about $2,438 more per year in their pockets. In San Francisco, where rents have risen sharply, the gain is more modest at $458 annually.

Affordability is beginning to recover and move closer to historical norms. The share of income the median household spends on typical rent has eased to 26.5%, down slightly from a year ago and nearing the pre-pandemic level of 25.8%. Still, a household needs to earn roughly $76,400 a year to comfortably afford the typical rental, 35% more than what was required before the pandemic. 

At the same time, affordability challenges in the for-sale market are pushing some would-be first-time buyers to consider rentals. New Zillow research shows nearly 1 in 13 for-sale shoppers are also browsing rentals, and for the homes these dual shoppers are considering, owning costs about $415 more per month than renting. For households weighing their options, renting often offers the more affordable and flexible path.

Two in 5 rental listings on Zillow offered concessions in March — things such as free rent or waived fees — tying 2025 for the highest share ever recorded for the month. With incomes rising and more supply in the market than renters have seen in years, they have more options and more power at the negotiating table.

Rents

• The typical asking rent is $1,910 in March, up 0.6% month-over-month. The pre-pandemic average month-over-month change for this time of year is 0.7%.
• Since the beginning of the pandemic, rents have increased by 36.2%.
• Rents are now 1.8% upfrom last year.
• Rents are up from year-ago levels in 37 of the 50 largest metro areas. Annual rent increases are highest in San Francisco (6.4%), Virginia Beach (6%), Chicago (5.6%), Providence (4.9%), and San Jose (4.8%).

Single-Family Rents

• The typical asking rent for single-family homes is $2,225 in March, up 0.5% month-over-month. Since the beginning of the pandemic, single-family rents have increased by 44.9%.
• Single-family rents are now up 2.5% from last year.
• Single-family rents fell, on a monthly basis, in 3 major metro areas. The largest monthly drops in single-family rents are in Baltimore (-0.2%), Richmond (-0.1%) and Minneapolis (-0.1%).
• 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 Providence (7.3%), Milwaukee (5.8%), Boston (5.6%), Buffalo (5.3%), and Cleveland (5%).

Multifamily Rents

• The typical asking rent for multifamily homes is $1,757 in March, up 0.6% month-over-month. Since the beginning of the pandemic, multifamily rents have increased by 28%.
• Multifamily rents are now up 1.3% from last year.
• Multifamily rents are up from year-ago levels in 33 of the 50 largest metro areas. Annual multifamily rent increases are highest in Virginia Beach (6.5%), San Francisco (6.1%), Chicago (5.5%), San Jose (4.8%), and Providence (4.6%).

Rent Concessions

• 39.8% of rentals on Zillow offered concessions in March.
• The share of rental listings offering concessions increased by 0.6ppts month-over-month in March.
• The share of rental listings offering concessions ia flat compared to last year.
• The share of rentals with concessions is lower, on a monthly basis, in 17 major metro areas. The largest monthly drops in the share of rentals with concessions are in Milwaukee (-2.9ppts), San Francisco (-2.3ppts), Salt Lake City (-1.7ppts), Minneapolis (-1ppts), and Kansas City (-0.8ppts).
• The share of rentals with concessions is higher, on a monthly basis, in 33 major metro areas. The largest monthly increases in the share of rentals with concessions are in Indianapolis (4.3ppts), New Orleans (3.8ppts), Memphis (3.7ppts), Virginia Beach (2.7ppts), and San Antonio (2.6ppts).
• Rent concessions are up from year-ago levels in 30 of the 50 largest metro areas. The annual increase in share of rental listings with concessions is highest in Tampa (12ppts), Birmingham (8.9ppts), Las Vegas (8.5ppts), Boston (7.5ppts), and Columbus (7.4ppts).

Rent Affordability

• The median household would spend 26.5% of their income on a new rental in March.
• Rent affordability is flat month-over-month in March. The pre-pandemic share of median household income spent on rent was 25.8%.
• Rent affordability is now 0.4ppts down from last year.
• The most affordable metro areas for rents are Austin (18.1%), Salt Lake City (18.2%), Raleigh (18.4%), Minneapolis (19.5%), and Denver (19.5%).
• The least affordable metro areas for rents are New York (38.0%), Miami (37.4%), Los Angeles (33.9%), Riverside (31.0%), and Boston (30.1%).

• Income needed to afford rent increased by 1.7% year-over-year in March to $76,417. Since pre-pandemic, the income needed to afford rent has increased by 35.4%.

*Table ordered by market size