Rents Pull Back and Concessions Rise, Offering Renters Winter Leverage (November Rental Report)
Key Takeaways:
- Rents dipped slightly in November: The typical asking rent is now $1,925, down 0.3% from last month.
- Largest monthly rent declines: Denver (-1%), Washington D.C. (-0.7%), Austin (-0.7%), Salt Lake City (-0.7%) and Nashville (-0.7%). Over the last 12 months, rents have fallen most in Austin (-3%), Denver (-1.8%), San Antonio (-2.3%), Phoenix (-1.3%), and New Orleans (-1.2%).
- Deals remain common: Nearly two in every five listings included a concession, illustrating the bargaining power that renters have in today’s market.
According to Zillow’s November Rental Report, rents edged down as the usual winter slowdown took hold. The typical U.S. asking rent fell 0.3% from October to $1,925. This decline mirrors patterns seen in prior years. Cooler weather and fewer moves typically ease pressure on rents, contributing to the seasonal dip.
Over the past year, the rental market has moved firmly in favor of renters. New supply and lower churn have contributed to a calmer pace of rent changes across many metros. Rent growth is now somewhat lower than before the pandemic. Before the pandemic, annual rent growth for a single family rental averaged roughly 4.3% while annual rent growth for a multifamily rental was roughly 3.6%. Over the past year, rent growth was just 3% and 1.5% for single-family and multifamily rentals, respectively.
Apartment renters continue to benefit from the multifamily construction boom. New buildings scheduled for 2025 are still considerably higher than the recent historical average, which keeps many major metros well-supplied with available units. That supply is driving sharper rent drops in several Sun Belt and Mountain West markets — including Austin (-3%), Denver (-1.8%) and San Antonio (-2.3%) — and encouraging property managers to lean more heavily on retention efforts such as renewal discounts, reduced fees and flexible lease terms to keep current renters in place.
Incentives have become increasingly common as vacancy rates remain elevated. Nearly two in five listings now include a concession (39.3%), highlighting that renters have more negotiating power. The share of rentals with a concession is the highest for any November since Zillow began tracking this metric.
While rent growth has cooled, rents for single-family homes have held firmer than for multifamily rentals. This is partly supported by aging renter demographics and households seeking more space but priced out of the for-sale housing market. In addition, multifamily construction far outpaced the increase in single-family construction during the pandemic.
Rent growth is expected to stay muted through winter as leasing activity slows and incentives remain common. Zillow forecasts rent growth to ease further in 2026. Single-family rents are expected to rise by just 1.6% compared to a 1% decline for multifamily rents.
Rents
- The typical asking rent is $1,925 in November, down 0.3% month-over-month. The pre-pandemic average month-over-month change for this time of year is 0%.
- Since the beginning of the pandemic, rents have increased by 35.2%.
- Rents are now 2.2% up from last year.
- Rents fell, on a monthly basis, in 43 major metro areas. The largest monthly drops are in Denver (-1%), Washington D.C. (-0.7%), Austin (-0.7%), Salt Lake City (-0.7%), and Nashville (-0.7%).
- Rents are up from year-ago levels in 45 of the 50 largest metro areas. Annual rent increases are highest in San Francisco (5.8%), Chicago (5.5%), Providence (5.4%), Cleveland (4.9%), and New York (4.9%).
Single-Family Rents
- The typical asking rent for single-family homes is $2,203 in November, down 0.1% month-over-month. Since the beginning of the pandemic, single-family rents have increased by 43.7%.
- Single-family rents are now up 3% from last year.
- Single-family rents fell, on a monthly basis, in 36 major metro areas. The largest monthly drops in single-family rents are in Portland (-0.9%), Nashville (-0.9%), Seattle (-0.6%), Louisville (-0.6%), and Hartford (-0.6%).
- Single-family rents are up from year-ago levels in all of the largest metro areas. Annual single-family rent increases are highest in Cleveland (6.3%), Providence (5.9%), Milwaukee (5.7%), Indianapolis (5.5%), and Kansas City (5.1%).
Multifamily Rents
- The typical asking rent for multifamily homes is $1,757 in November, down 0.4% month-over-month. Since the beginning of the pandemic, multifamily rents have increased by 27.1%.
- Multifamily rents are now up 1.5% from last year.
- Multifamily rents fell, on a monthly basis, in 44 major metro areas. The largest monthly drops in multifamily rents are in Denver (-1.1%), Raleigh (-1%), Salt Lake City (-0.9%), Washington D.C. (-0.8%), and Charlotte (-0.8%).
- 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 (5.6%), Chicago (5.6%), Providence (5.4%), Virginia Beach (5%), and New York (4.8%).
Rent Concessions
- 39.3% of rentals on Zillow offered concessions in November.
- The share of rental listings offering concessions increased by 0.6ppts month-over-month in November.
- The share of rental listings offering concessions increased by 0.8ppts from last year.
- The share of rentals with concessions is lower, on a monthly basis, in 13 major metro areas. The largest monthly drops in the share of rentals with concessions are in Memphis (-8.7ppts), Las Vegas (-1.5ppts), New Orleans (-1.1ppts), Virginia Beach (-1ppts), and Minneapolis (-1ppts).
- The share of rentals with concessions is higher, on a monthly basis, in 37 major metro areas. The largest monthly increases in the share of rentals with concessions are in Salt Lake City (3.5ppts), St. Louis (3ppts), Columbus (2.5ppts), Raleigh (2.3ppts), and Cincinnati (2.2ppts).
- Rent concessions are up from year-ago levels in 36 of the 50 largest metro areas. The annual increase in share of rental listings with concessions is highest in Columbus (12.3ppts), Las Vegas (11ppts), Tampa (9.1ppts), Salt Lake City (8.9ppts), and New Orleans (7.8ppts).
Rent Affordability
- The median household would spend 26.7% of their income on a new rental in November.
- Rent affordability decreased by 0.1ppts month-over-month in November. The pre-pandemic share of median household income spent on rent was 26%.
- Rent affordability is now 0.5ppts down from last year.
- The most affordable metro areas for rents are Austin (18.2%), Salt Lake City (18.2%), Raleigh (18.7%), St. Louis (19.6%), and Minneapolis (19.8%).
- The least affordable metro areas for rents are New York (37.6%), Miami (37.4%), Los Angeles (34.2%), Riverside (31.3%), and San Diego (30.4%).
- Income needed to afford rent increased by 2.3% year-over-year in November to $77,011. Since pre-pandemic, the income needed to afford rent has increased by 35.2%.