Rent is ticking up, but so are the deals
Rhea-AI Summary
Zillow (NASDAQ:Z) reports that the typical U.S. asking rent reached $1,965 in June, up 2.2% year over year, even as 39.7% of listings on Zillow included a rental concession, up from 35.2% a year earlier. Concessions include offers such as a free month’s rent or waived fees, reducing renters’ effective costs.
According to Zillow, years of robust construction have boosted inventory, especially in Sun Belt markets like Charlotte (67.1% concessions), Denver (65.9%) and Dallas (64.6%), supporting high concession rates and slower rent growth or declines. Rents fell in San Antonio (-1.8%), Austin (-1.7%) and Denver (-1.3%). In tighter markets, rents are rising faster with fewer deals: San Francisco leads with 8.2% annual growth to $3,301 and a 24.9% concession share, while San Jose and Chicago saw rents rise 6.2% and 5.2%, respectively.
Zillow notes single-family rents climbed 3% year over year to $2,320, about double the 1.5% increase for multifamily units, now at $1,789. With building completions slowing and net absorption rising, Zillow expects the rental market to gradually tighten, concession offers to become less common over time, and rent growth for 2026 to remain moderate, with forecast gains of 3.1% for single-family rentals and 2% for multifamily.
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News Market Reaction – Z
In the Jul 23 session, Z declined 5.68%, reflecting a notable negative market reaction. Argus tracked a peak move of +3.7% during that session. Our momentum scanner triggered 5 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
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Although rent growth has accelerated, the share of listings offering an incentive remains elevated
- The typical
U.S . asking rent rose to$1,965 2.2% annually, according to the Zillow Observed Rent Index. 39.7% of rentals on Zillow offered a concession in June, up from35.2% a year ago.- Sun Belt renters have more options and more deals than the rest of the country, the direct result of a years-long building boom.
A concession is a move-in discount, commonly a free month's rent, waived fees or free parking. For renters who land a freebie, the real cost of renting can be softer than the asking price suggests. The
The backdrop is a rental market that has added significant new inventory over the past few years, giving renters more choices. Meanwhile, the cost of buying a home remains high, keeping many in the rental market longer. That combination is driving both trends: enough demand to keep absorption elevated and sufficient supply to keep the rental vacancy rate elevated.
"The payoff from the construction boom is showing up clearly for renters right now," said Orphe Divounguy, senior economist at Zillow. "Supply is the most direct lever to keep rents in check over the long term. Markets that invested in new housing are rewarding renters with more choices, more concessions and more competitive pricing. Renters in areas that did not are feeling it, as rents continue to increase fast and affordability is slow to improve."
The rental market is expected to tighten
Rent growth has been consistent this spring: April, May and June all posted stronger month-over-month gains than the same months in 2025.
The rapid climb in the number of available rental units is slowing, in large part because the apartment construction wave that flooded the market is finally receding: building completions fell further in the second quarter, while net absorption continued to increase.
With demand holding steady and the flow of new apartments slowing, conditions are expected to tighten gradually across the country. That means the elevated concession rates renters are seeing today reflect a market still working through its inventory. As that process plays out, deals are expected to become less common even as rent growth stays measured.
Where deals are most common
The markets with the highest concession rates are where the most new apartments were built and where renters have the most options today.
Where the market is tightest, rents are rising fastest.
Single-family rents increase twice as much as apartment rents
Single-family rents rose
Looking ahead, rent growth is expected to remain moderate. Zillow forecasts single-family rents to rise
Metro | Concession | Concession | Typical Rent, | Rent YoY | Income |
39.7 % | 4.5 % | 2.2 % | |||
17.2 % | 1.3 % | 4.5 % | |||
32.5 % | 2.9 % | 1.5 % | |||
23.3 % | 2.6 % | 5.2 % | |||
64.6 % | 9.2 % | 0 % | |||
54.0 % | 7.2 % | -0.1 % | |||
54.8 % | 4.2 % | 0.1 % | |||
31.8 % | 3.0 % | 3.6 % | |||
27.8 % | 2.7 % | 1.2 % | |||
58.2 % | 5.3 % | 1.9 % | |||
29.5 % | 4.8 % | 2.6 % | |||
61.0 % | 6.0 % | 0 % | |||
24.9 % | 8.9 % | 8.2 % | |||
29.9 % | 3.1 % | 2.3 % | |||
25.3 % | 2.8 % | 3.2 % | |||
52.4 % | 6.7 % | 1.4 % | |||
40.0 % | 0.4 % | 3.4 % | |||
37.4 % | 4.1 % | 1.7 % | |||
52.5 % | 11.3 % | -0.7 % | |||
65.9 % | 4.4 % | -1.3 % | |||
37.7 % | 1.0 % | 2.2 % | |||
28.9 % | 6.5 % | 4.0 % | |||
55.2 % | 5.7 % | 0.7 % | |||
67.1 % | 6.0 % | 0.5 % | |||
56.9 % | 6.1 % | -1.8 % | |||
48.0 % | 6.2 % | 0.4 % | |||
31.8 % | 2.8 % | 2.0 % | |||
25.8 % | 5.1 % | 3.6 % | |||
32.6 % | 12.6 % | 2.8 % | |||
64.3 % | 3.6 % | -1.7 % | |||
57.1 % | 15.5 % | 0.3 % | |||
34.8 % | 7.7 % | 3.4 % | |||
48.8 % | 11.0 % | 1.5 % | |||
46.9 % | 9.0 % | 2.5 % | |||
24.7 % | 2.0 % | 4.0 % | |||
23.7 % | -13.2 % | 6.2 % | |||
64.0 % | 6.4 % | 0.4 % | |||
21.8 % | -4.9 % | 5.5 % | |||
11.4 % | -0.1 % | 3.5 % | |||
50.2 % | 3.1 % | 1.2 % | |||
18.3 % | -4.5 % | 4.2 % | |||
29.7 % | 3.3 % | 2.8 % | |||
64.1 % | 4.6 % | 0.3 % | |||
43.3 % | 8.4 % | 0.7 % | |||
47.4 % | 7.7 % | 3.3 % | |||
44.5 % | 11.1 % | 2.3 % | |||
19.3 % | 7.2 % | 0.8 % | |||
64.2 % | 8.2 % | 0.6 % | |||
20.7 % | 0.6 % | 3.1 % | |||
10.1 % | 2.9 % | 3.1 % | |||
39.2 % | 14.8 % | 1.2 % |
*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 the United States, Zillow connects hundreds of millions of consumers with innovative technology, trusted agents and loan officers, and seamless digital solutions. With industry-leading tools and resources, Zillow supercharges real estate professionals so they can grow their businesses and deliver exceptional client experiences. For renters and housing providers, Zillow offers not only a robust marketplace but a set of end-to-end products and services to streamline applications, leases, payments and more.
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