New apartment supply and rise of 'accidental landlords' help cool rent growth nationwide
Zillow (NYSE: Z) reports U.S. asking rent growth slowed to 1.9% year‑over‑year in February, the slowest pace since December 2020, with the typical asking rent at $1,895.
Rhea-AI Summary
Zillow (NYSE: Z) reports U.S. asking rent growth slowed to 1.9% year‑over‑year in February, the slowest pace since December 2020, with the typical asking rent at $1,895. Nearly 39.2% of listings offered concessions as rising apartment completions and “accidental landlords” expand supply.
Multifamily rent growth eased to 1.4% annually from peaks near 16% in 2022; Zillow forecasts modest 2026 gains: single‑family +1.8% and multifamily +0.9% by December 2026.
Positive
- National rent growth slowed to 1.9% YoY, easing price pressure
- 39.2% of listings offered concessions, indicating stronger renter bargaining power
- Typical asking rent reported at $1,895, a clear market benchmark
Negative
- Multifamily rent growth down to 1.4% annually, sharply below 2022 peak (~16%)
- Household needs about $76,000 annually to afford the typical rent, 35% higher than pre-pandemic
- Several large metros show year‑over‑year rent declines (Austin -2.4%, San Antonio -1.6%, Tampa -1.4%, Denver -1.0%)
Details
News Market Reaction – Z
On Mar 19, the day this news came out, Z closed 1.58% below the previous close.
Data tracked by StockTitan Argus for the Mar 19 session.
Key Figures
- U.S. rent YoY growth
- 1.9%
- Year-over-year increase in typical U.S. asking rent, February
- Typical U.S. rent
- $1,895
- Zillow Observed Rent Index, United States, February
- Listings with concessions
- 39.2%
- Share of U.S. rental listings on Zillow offering a concession
- Income needed for typical rent
- $76,000
- Annual household income needed to comfortably afford typical U.S. rent
- Rent share of income
- 26.3%
- Share of median renter household income spent on typical U.S. rent
- San Francisco rent YoY
- 6.3%
- Year-over-year rent increase, San Francisco metro
- Single-family rent forecast
- 1.8%
- Projected single-family rent growth by December 2026
- Today’s volume
- 5,742,039 shares
- Z trading volume vs 20-day average 4,646,646 shares
Historical Context
-
Introduced Zillow Preview pre-market listings with partner brokerages and incentives.
-
Reported rise in accidental landlords and expanded single-family rental supply.
-
Authorized additional $1.25B share repurchase, lifting remaining buyback capacity.
-
February market report showing modest home value gains and better affordability.
-
Announced AI Summit for Investors to showcase AI-enabled transaction platform.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
zillow observed rent index (zori) technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Rent growth slows to
- The year-over-year increase in the typical
U.S. asking rent eased to1.9% in February, according to the Zillow Observed Rent Index. - Nearly
40% of rental listings on Zillow offered concessions, such as free rent or waived fees, in February. - While affordability is improving, a household needs to earn about
$76,000 $20 K
The moderation is being driven by expanding supply. A boom in apartment construction has pushed vacancy rates higher and slowed multifamily rent growth to
Cooling conditions in the for-sale market are also contributing to rental supply. Late last year, a near-record number of homeowners who were unable to sell chose to rent out their properties instead. These "accidental landlords" are adding single-family homes to the rental pool. Single-family rents rose
"Renters are gaining leverage, and that advantage is expected to continue as new supply comes online," said Orphe Divounguy, senior economist at Zillow®. "An increase in both apartment buildings and single-family rentals means landlords must continue to compete more on price and incentives."
Affordability improves, but pressures persist
As incomes have grown slightly faster than rents over the past year, affordability for new renters has modestly improved. A renter household that earns the median household income now spends
The good news for renters: More rental options have boosted bargaining power and helped cool rent growth. Concessions remain common as well, with
Local markets move at different speeds
In February, the pace of annual rent increases decelerated in 34 markets when compared to the previous month.
Rents fell on a year-over-year basis in eight of the 50 largest
Among the 50 largest markets,
What's ahead
Rent growth is projected to remain modest in 2026, with single-family rents forecast to rise
For renters, more supply may mean greater negotiating power. Zillow connects renters to apartments, single-family homes and rooms for rent — all in one place — and the rent affordability calculator helps ensure the match fits the budget. For property managers, it means pricing competitively and utilizing the right tools to make their listings stand out.
Metro Area | Typical Rent, | Typical Rent, | Typical Rent, | Renter | Share of Rental |
0.4 % | 1.9 % | 26.3 % | 39.2 % | ||
0.5 % | 4.2 % | 37.1 % | 19.0 % | ||
0.2 % | 1.1 % | 33.9 % | 30.0 % | ||
0.9 % | 5.5 % | 26.8 % | 22.0 % | ||
0.3 % | 0.2 % | 19.9 % | 61.8 % | ||
-0.1 % | -0.4 % | 22.7 % | 51.1 % | ||
0.5 % | 0.2 % | 21.1 % | 56.1 % | ||
0.6 % | 3.1 % | 23.3 % | 32.9 % | ||
0.2 % | 0.5 % | 37.3 % | 27.9 % | ||
0.2 % | 1.6 % | 22.3 % | 56.2 % | ||
0.6 % | 1.9 % | 29.7 % | 32.1 % | ||
0.4 % | -0.7 % | 21.8 % | 57.6 % | ||
1.1 % | 6.3 % | 25.9 % | 30.4 % | ||
0.4 % | 1.7 % | 30.9 % | 28.1 % | ||
0.2 % | 2.4 % | 21.8 % | 27.0 % | ||
0.2 % | 1.8 % | 22.2 % | 53.9 % | ||
0.6 % | 4.0 % | 19.4 % | 40.7 % | ||
0.5 % | 1.6 % | 29.8 % | 36.5 % | ||
0.3 % | -1.4 % | 28.6 % | 49.9 % | ||
0.3 % | -1.0 % | 19.4 % | 68.6 % | ||
0.3 % | 2.5 % | 21.5 % | 39.3 % | ||
0.2 % | 3.5 % | 19.5 % | 26.4 % | ||
0.3 % | 0.2 % | 27.0 % | 51.1 % | ||
0.3 % | 0.5 % | 22.6 % | 64.1 % | ||
0.2 % | -1.6 % | 20.2 % | 54.8 % | ||
0.3 % | 0.9 % | 20.4 % | 49.6 % | ||
0.2 % | 2.1 % | 25.4 % | 31.6 % | ||
0.2 % | 3.8 % | 21.1 % | 26.9 % | ||
0.7 % | 3.5 % | 21.5 % | 24.2 % | ||
0.5 % | -2.4 % | 17.9 % | 63.6 % | ||
0.4 % | -0.1 % | 24.5 % | 52.9 % | ||
0.4 % | 3.5 % | 20.1 % | 37.1 % | ||
0.5 % | 1.7 % | 20.3 % | 45.3 % | ||
0.1 % | 2.6 % | 21.3 % | 44.2 % | ||
0.8 % | 5.0 % | 22.6 % | 27.8 % | ||
0.7 % | 5.1 % | 23.2 % | 34.6 % | ||
0.2 % | 0.2 % | 22.8 % | 62.1 % | ||
0.5 % | 5.7 % | 24.6 % | 27.6 % | ||
0.7 % | 4.8 % | 29.1 % | 13.2 % | ||
0.5 % | 0.7 % | 23.1 % | 47.3 % | ||
0.2 % | 3.5 % | 21.8 % | 29.5 % | ||
0.4 % | 2.6 % | 21.1 % | 29.7 % | ||
0.4 % | 0.2 % | 18.4 % | 62.8 % | ||
-0.2 % | 1.2 % | 23.8 % | 38.8 % | ||
0.7 % | 3.9 % | 22.8 % | 45.7 % | ||
0.0 % | 1.9 % | 20.9 % | 41.1 % | ||
0.3 % | 0.2 % | 28.8 % | 16.1 % | ||
0.1 % | -0.7 % | 18.1 % | 67.6 % | ||
-0.1 % | 2.5 % | 22.8 % | 24.1 % | ||
0.5 % | 3.6 % | 21.7 % | 9.5 % | ||
0.2 % | 1.6 % | 21.1 % | 40.8 % |
*Table ordered by market size
About Zillow Group:
Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people.
As the most visited real estate app and website in
Zillow's ecosystem spans the entire home journey — from dreaming and shopping to renting, buying, selling and financing.
Zillow Group's affiliates, subsidiaries and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans®, Zillow Rentals®, Zillow® New Construction, Trulia®, StreetEasy®, Out East®, HotPads®, Follow Up Boss®, ShowingTime®, dotloop® and Zillow® Closing.
All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2026 MFTB Holdco, Inc., a Zillow affiliate.
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SOURCE Zillow
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