Incomes Rise Faster Than Rents in 37 US Metros (October Rent Report)
As rent growth slowed this year, U.S. incomes grew 1.7% faster than asking rents
Key Takeaways:
- The 12 metros where rents continue to outpace incomes include large markets like New York, San Francisco and Chicago, as well as affordable midwest markets like St. Louis, Milwaukee and Cleveland.
- Nearly 2 in 5 rentals on Zillow offered a concession in October to remain competitive and attract new tenants. Rental concessions have become the norm in 14 metros across the country.
- A new renter household earning the median household income would need to spend 27.2% of their income to afford the typical rent – up from 26.3% before the pandemic.
Across the country, rent growth continued to slow beyond seasonal norms in October, allowing incomes to make progress. Nationally, the median household income is estimated to have increased 4% from last year, while the typical asking rent increased just 2.3%. In 37 of the 50 largest metros, median household incomes have increased faster than rents in the past year.
Affordability is improving most significantly in markets where rents have fallen from year-ago levels, including Austin (where the typical asking rent is down 3.1% annually), Denver (-2.1%), San Antonio (-0.8%) and Phoenix (-0.7%). Though incomes have understandably outpaced rents in markets where rent growth has turned negative, affordability improvements have even reached metros where rent growth remains strong. In San Jose, where rents are up 3.8% from last year, income growth has continued to outperform the increase in rent by 1%.
While affordability has made strides this year, affordability remains a greater challenge for renters today than before the pandemic. As of October, a new renter household earning the median income would need to spend 27.2% of their income to afford the typical rent. Meanwhile, before the pandemic, this measure of affordability was more than a full percentage point lower (26.3%) – a rate that remained relatively consistent over the pre-pandemic period.
Though rent growth has softened significantly this year, the typical asking rent across the country sits at $1,949, up 35.6% since before the pandemic. In 12 metros – including New York, San Francisco and Chicago, as well as more affordable markets like St. Louis, Milwaukee and Cleveland – rents continued to grow at rates greater than median incomes.
Concessions help bridge the affordability gap
As a result of an increase in rental vacancies as more new multifamily construction joins the market, the share of rentals on Zillow offering a concession – such as weeks of free rent or waived fees – crept even higher as property managers competed to attract new tenants. Nearly 39% of all rentals on Zillow offered a freebie in October – an all-time high for the month.
Concessions are increasingly becoming the norm in some markets thanks to surges in new multifamily buildings joining the market – and existing rental operators are finding that they must offer them, too, in order to compete. There were 14 metros across the country where more than half of rentals offered a concession, including Denver (67.5%), Washington, D.C. (56.5%), Seattle (54.3%) and Orlando (51.7%).
A more promising market in 2026
As the weather turns colder, demand for rentals generally slows. With even fewer renters on the market, rent growth will likely continue to soften and concessions may move even higher as this year comes to a close. However, multifamily completions have already peaked, resulting in a slowdown in the number of apartment units coming on the market. While multifamily rents are expected to fall further, rents could find a bottom in 2026.
| Region | Typical Asking Rent | Rent Growth | Income Growth | Delta Between Income & Rent Growth | Concessions |
| United States | $1,949.00 | 2.3% | 4.0% | 1.7% | 38.7% |
| New York, NY | $3,398.00 | 5.3% | 3.8% | -1.5% | 18.1% |
| Los Angeles, CA | $2,925.00 | 2.4% | 4.0% | 1.6% | 29.3% |
| Chicago, IL | $2,077.00 | 5.8% | 3.7% | -2.1% | 24.4% |
| Dallas, TX | $1,678.00 | 0.0% | 4.0% | 4.0% | 60.5% |
| Houston, TX | $1,646.00 | 0.2% | 3.9% | 3.7% | 48.7% |
| Washington, DC | $2,381.00 | 1.0% | 3.8% | 2.8% | 56.5% |
| Philadelphia, PA | $1,877.00 | 3.4% | 3.9% | 0.5% | 31.3% |
| Miami, FL | $2,668.00 | 0.7% | 4.0% | 3.3% | 27.1% |
| Atlanta, GA | $1,860.00 | 2.6% | 3.9% | 1.3% | 56.0% |
| Boston, MA | $2,917.00 | 3.0% | 3.8% | 0.8% | 32.9% |
| Phoenix, AZ | $1,763.00 | -0.7% | 3.9% | 4.6% | 57.0% |
| San Francisco, CA | $3,128.00 | 6.0% | 4.2% | -1.8% | 34.5% |
| Riverside, CA | $2,521.00 | 2.0% | 3.9% | 1.9% | 29.2% |
| Detroit, MI | $1,492.00 | 2.7% | 3.8% | 1.1% | 27.4% |
| Seattle, WA | $2,224.00 | 2.7% | 3.9% | 1.2% | 54.3% |
| Minneapolis, MN | $1,706.00 | 4.0% | 3.8% | -0.2% | 44.0% |
| San Diego, CA | $2,987.00 | 1.8% | 4.2% | 2.4% | 37.1% |
| Tampa, FL | $2,024.00 | 1.1% | 4.0% | 2.9% | 49.4% |
| Denver, CO | $1,921.00 | -2.1% | 3.9% | 6.0% | 67.5% |
| Baltimore, MD | $1,921.00 | 2.8% | 3.8% | 1.0% | 40.4% |
| St. Louis, MO | $1,401.00 | 4.1% | 3.7% | -0.4% | 21.3% |
| Orlando, FL | $1,975.00 | 0.5% | 3.9% | 3.4% | 51.7% |
| Charlotte, NC | $1,760.00 | 1.4% | 4.0% | 2.6% | 62.5% |
| San Antonio, TX | $1,406.00 | -0.8% | 3.9% | 4.7% | 54.4% |
| Portland, OR | $1,838.00 | 1.1% | 4.1% | 3.0% | 46.6% |
| Sacramento, CA | $2,288.00 | 1.9% | 4.0% | 2.1% | 33.2% |
| Pittsburgh, PA | $1,467.00 | 3.6% | 4.2% | 0.6% | 24.1% |
| Cincinnati, OH | $1,558.00 | 3.3% | 3.8% | 0.5% | 22.2% |
| Austin, TX | $1,601.00 | -3.1% | 3.7% | 6.8% | 62.0% |
| Las Vegas, NV | $1,744.00 | 0.4% | 3.8% | 3.4% | 51.3% |
| Kansas City, MO | $1,482.00 | 4.4% | 3.9% | -0.6% | 31.3% |
| Columbus, OH | $1,547.00 | 3.1% | 4.1% | 1.0% | 46.0% |
| Indianapolis, IN | $1,494.00 | 3.8% | 3.3% | -0.5% | 42.2% |
| Cleveland, OH | $1,393.00 | 5.4% | 4.0% | -1.4% | 25.9% |
| San Jose, CA | $3,449.00 | 3.8% | 4.8% | 1.0% | 45.2% |
| Nashville, TN | $1,801.00 | 0.8% | 3.7% | 2.9% | 63.0% |
| Virginia Beach, VA | $1,811.00 | 4.6% | 3.9% | -0.7% | 33.1% |
| Providence, RI | $2,141.00 | 5.1% | 3.5% | -1.6% | 15.1% |
| Jacksonville, FL | $1,680.00 | 1.0% | 3.8% | 2.8% | 48.3% |
| Milwaukee, WI | $1,427.00 | 4.5% | 3.7% | -0.8% | 32.4% |
| Oklahoma City, OK | $1,355.00 | 3.0% | 4.1% | 1.0% | 29.9% |
| Raleigh, NC | $1,703.00 | 0.7% | 3.7% | 3.0% | 63.7% |
| Memphis, TN | $1,452.00 | 2.0% | 3.8% | 1.8% | 41.7% |
| Richmond, VA | $1,692.00 | 3.8% | 3.8% | 0.0% | 49.2% |
| Louisville, KY | $1,351.00 | 2.4% | 3.6% | 1.2% | 36.5% |
| New Orleans, LA | $1,621.00 | 0.2% | 3.8% | 3.6% | 18.7% |
| Salt Lake City, UT | $1,647.00 | 0.5% | 3.8% | 3.4% | 61.0% |
| Hartford, CT | $1,886.00 | 3.7% | 3.6% | -0.1% | 24.1% |
| Buffalo, NY | $1,375.00 | 2.9% | 3.8% | 0.9% | 7.2% |
| Birmingham, AL | $1,375.00 | 2.2% | 4.2% | 2.0% | 37.2% |
Rents
- The typical asking rent is $1,949 in October, down 0.2% month-over-month. The pre-pandemic average month-over-month change for this time of year is -0.1%.
- Since the beginning of the pandemic, rents have increased by 35.6%.
- Rents are now up 2.3% from last year.
- Rents fell, on a monthly basis, in 39 major metro areas. The largest monthly drops are in Denver (-1%), San Antonio (-0.8%), Austin (-0.7%), Richmond (-0.6%), and Washington (-0.6%).
- Rents are up from year-ago levels in 46 of the 50 largest metro areas. Annual rent increases are highest in San Francisco (6%), Chicago (5.8%), Cleveland (5.4%), New York (5.3%), and Providence (5.1%).
Single-Family Rents
- The typical asking rent for single-family homes is $2,227 in October, unchanged from September. Since the beginning of the pandemic, single-family rents have increased by 43.9%.
- Single-family rents are now up 3.1% from last year.
- Single-family rents fell, on a monthly basis, in 33 major metro areas. The largest monthly drops in single-family rents are in Buffalo (-0.6%), Hartford (-0.5%), Milwaukee (-0.5%), Richmond (-0.4%), and Washington (-0.4%).
- Single-family rents are up from year-ago levels in 50 of the 50 largest metro areas. Annual single-family rent increases are highest in Cleveland (6.3%), Indianapolis (5.7%), Providence (5.5%), Kansas City (5.4%), and St. Louis (5.2%).
Multifamily Rents
- The typical asking rent for multifamily homes is $1,779 in October, down 0.3% month-over-month. Since the beginning of the pandemic, multifamily rents have increased by 27.6%.
- Multifamily rents are now up 1.6% from last year.
- Multifamily rents fell, on a monthly basis, in 41 major metro areas. The largest monthly drops in multifamily rents are in Denver (-1.2%), Tampa (-0.9%), Richmond (-0.9%), San Antonio (-0.8%), and Austin (-0.8%).
- Multifamily rents are up from year-ago levels in 35 of the 50 largest metro areas. Annual multifamily rent increases are highest in San Francisco (5.9%), Chicago (5.8%), New York (5.3%), Providence (5.1%), and Cleveland (4.5%).
Rent Concessions
- 38.7% of rentals on Zillow offered concessions in October.
- The share of rental listings offering concessions increased by 1.4ppts month-over-month in October.
- The share of rental listings offering concessions increased by 1.1ppts from last year.
- The share of rentals with concessions is lower, on a monthly basis, in 7 major metro areas. The largest monthly drops in the share of rentals with concessions are in Louisville (-2.6ppts), Kansas City (-1.4ppts), San Diego (-0.4ppts), Hartford (-0.4ppts), and Pittsburgh (-0.3ppts).
- The share of rentals with concessions is higher, on a monthly basis, in 43 major metro areas. The largest monthly increases in the share of rentals with concessions are in Memphis (4.1ppts), Columbus (3.3ppts), Virginia Beach (3.3ppts), Detroit (3.3ppts), and Seattle (3.2ppts).
- Rent concessions are up from year-ago levels in 32 of the 50 largest metro areas. The annual increase in share of rental listings with concessions is highest in Memphis (13.9ppts), Las Vegas (11.2ppts), Houston (9.7ppts), Denver (9.4ppts), and Orlando (8.8ppts).
Rent Affordability
- The median household would spend 27.2% of their income on a new rental in October.
- Rent affordability decreased by 0.1ppts month-over-month in October. The pre-pandemic share of median household income spent on rent was 26.3%.
- Rent affordability is now -0.4ppts [up/down] from last year.
- The most affordable metro areas for rents are Austin (18.4%), Salt Lake City (18.7%), Raleigh (19.0%), St. Louis (19.7%), and Minneapolis (20.0%).
- The least affordable metro areas for rents are New York (38.9%), Miami (37.6%), Los Angeles (34.6%), Riverside (31.6%), and San Diego (31.0%).
- Income needed to afford rent increased by 2.5% year-over-year in October to $77,948. Since pre-pandemic, the income needed to afford rent has increased by 35.2%.
