Rent affordability hits four-year high, with further relief ahead
Zillow (NYSE:Z) projects easing rent pressures in 2026 as supply and vacancies lift renter bargaining power.
Rhea-AI Summary
Zillow (NYSE:Z) projects easing rent pressures in 2026 as supply and vacancies lift renter bargaining power. The typical U.S. asking rent was $1,895 in January, up 2% year-over-year, while renter affordability improved to 26.4% of median income, the lowest share since August 2021.
Zillow forecasts single-family rents +1.1% and multifamily rents -0.2% by December 2026, with concessions near record highs supporting subdued rent growth.
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Details
News Market Reaction – Z
In the Feb 18 session, Z gained 2.30%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
- Typical U.S. asking rent
- $1,895
- January, Zillow Observed Rent Index
- Rent-to-income share
- 26.4%
- Typical household share of income spent on rent
- Single-family rent forecast
- 1.1%
- Projected annual increase by December 2026
- Multifamily rent forecast
- -0.2%
- Projected annual change by December 2026
- Apartment rent YoY change
- 1.4%
- Year-over-year apartment rent increase
- Apartment affordability
- 24.3%
- Median-income share spent on typical apartment rent
- U.S. listings with concessions
- 38.8%
- Share of rental listings on Zillow offering a concession
- New York typical rent
- $3,232
- Zillow Observed Rent Index, New York metro
Historical Context
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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 technical
concessions financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
New Zillow forecast projects more breathing room for renters in 2026
- Rents are holding steady, with the typical asking rent at
$1,895 0.1% ) and up2% year over year. - Affordability is improving, with the typical household now spending
26.4% of income on rent — the lowest share since August 2021. - Zillow forecasts single-family rents to rise
1.1% at the end of 2026, while multifamily rents remain relatively flat (-0.2% ) as elevated vacancies and new supply continue to weigh on prices.
The typical
Multifamily renters are seeing even more improvement. Apartment rents rose just
"Renters are operating in a very different environment than they were just a few years ago," said Orphe Divounguy, senior economist at Zillow. "When supply expands and vacancies rise, property managers have to adjust on both price and terms. Concessions are near record highs, keeping rent growth modest and creating meaningful opportunities for renters."
Much of the shift comes down to supply. Although the flow of newly completed apartment buildings peaked in the summer of 2024, more buildings are still being added to the stock of available rental units. At the same time, a cooling labor market is helping keep the number of vacancies elevated. With more options available, renters now have more negotiating power for renewals and new leases than they have had in a long time.
Flexibility in lease terms is another sign of the shift. In January, just below
Single-family rents have been rising faster than apartment rents for several years, largely because the single-family construction boom was less pronounced. At the same time, demand for single-family rental housing remained high as flows into homeownership stayed somewhat subdued.
Even so, Zillow's forecast calls for single-family rents to cool further in 2026. In January, the typical single-family rent was up
Metro Area | Typical Rent, | Typical Rent, | Typical Rent, | Renter | Share of Rental |
0.1 % | 2.0 % | 26.4 % | 38.8 % | ||
-0.1 % | 4.3 % | 36.9 % | 19.2 % | ||
0.1 % | 1.6 % | 34.0 % | 29.5 % | ||
0.5 % | 5.4 % | 26.4 % | 23.1 % | ||
-0.1 % | 0.3 % | 20.0 % | 61.8 % | ||
-0.1 % | 0.0 % | 22.6 % | 48.7 % | ||
0.1 % | 0.4 % | 21.1 % | 55.6 % | ||
0.1 % | 2.9 % | 23.2 % | 31.6 % | ||
0.0 % | 0.5 % | 37.2 % | 27.6 % | ||
0.1 % | 2.1 % | 22.3 % | 56.1 % | ||
0.5 % | 1.8 % | 29.4 % | 33.1 % | ||
0.1 % | -0.6 % | 21.7 % | 58.0 % | ||
0.4 % | 5.8 % | 25.6 % | 31.6 % | ||
0.2 % | 1.8 % | 30.8 % | 28.4 % | ||
0.2 % | 2.8 % | 21.8 % | 28.6 % | ||
-0.1 % | 2.2 % | 22.2 % | 53.1 % | ||
0.1 % | 4.2 % | 19.4 % | 39.8 % | ||
0.1 % | 1.3 % | 29.8 % | 37.2 % | ||
-0.1 % | -1.2 % | 28.8 % | 49.5 % | ||
-0.1 % | -1.1 % | 19.4 % | 67.9 % | ||
0.4 % | 2.6 % | 21.5 % | 38.2 % | ||
0.3 % | 3.6 % | 19.7 % | 22.5 % | ||
0.2 % | 0.5 % | 26.9 % | 51.7 % | ||
0.0 % | 0.7 % | 22.5 % | 61.6 % | ||
0.0 % | -1.2 % | 20.1 % | 54.3 % | ||
-0.2 % | 0.9 % | 20.4 % | 48.4 % | ||
-0.2 % | 1.9 % | 25.3 % | 31.8 % | ||
0.4 % | 4.1 % | 21.2 % | 27.4 % | ||
0.4 % | 2.7 % | 21.3 % | 22.8 % | ||
0.0 % | -2.6 % | 17.9 % | 62.9 % | ||
0.0 % | 0.1 % | 24.5 % | 51.7 % | ||
0.2 % | 3.8 % | 19.8 % | 34.3 % | ||
-0.3 % | 1.6 % | 19.9 % | 46.3 % | ||
0.2 % | 3.2 % | 21.7 % | 41.4 % | ||
0.6 % | 4.2 % | 22.6 % | 27.9 % | ||
0.3 % | 5.1 % | 23.1 % | 39.3 % | ||
-0.1 % | 0.4 % | 22.8 % | 62.1 % | ||
0.4 % | 5.4 % | 24.8 % | 28.3 % | ||
0.1 % | 4.5 % | 29.0 % | 12.6 % | ||
-0.1 % | 0.2 % | 23.1 % | 46.3 % | ||
0.2 % | 3.9 % | 21.4 % | 29.8 % | ||
0.1 % | 2.7 % | 20.9 % | 28.8 % | ||
0.1 % | 0.2 % | 18.5 % | 63.5 % | ||
-0.1 % | 1.7 % | 23.7 % | 36.7 % | ||
0.5 % | 3.5 % | 22.6 % | 43.8 % | ||
0.2 % | 2.2 % | 20.8 % | 36.9 % | ||
0.3 % | 0.4 % | 28.7 % | 18.4 % | ||
-1.1 % | -0.3 % | 17.9 % | 67.3 % | ||
0.0 % | 3.1 % | 22.6 % | 23.4 % | ||
0.6 % | 3.4 % | 21.6 % | 8.5 % | ||
-0.1 % | 1.9 % | 20.9 % | 40.9 % |
*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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