Rents near $2,000, rising at the fastest pace in over a year
Rhea-AI Summary
Zillow (NASDAQ:Z) reports that the typical U.S. asking rent, measured by the Zillow Observed Rent Index (ZORI), reached $1,962 in July, up 2.3% year over year, the fastest annual pace in more than a year. About 39.8% of rentals listed on Zillow offered a concession, up from 35.9% a year earlier, reflecting lingering effects of a recent apartment construction surge even as multifamily permitting has fallen 31% from its 2022 peak.
According to Zillow, a household now needs $78,488 in annual income to comfortably afford the typical U.S. rental, versus nearly $99,800 to afford a typical mortgage payment, a gap of more than $21,000. Single-family rents rose 3% to $2,314, outpacing multifamily rent growth of 1.7% to $1,786. Markets with less new construction, such as San Francisco (9.7% rent growth, $3,372) and San Jose (7%, $3,782), are seeing faster rent increases and fewer deals, while high-supply markets like Charlotte, Denver and Dallas show concession rates above 65%.
Positive
- None.
Negative
- None.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Rents are rising and demand is strong, but property managers aren't rushing to cut concessions
- The Zillow Observed Rent Index (ZORI) shows the typical
U.S . asking rent rose to$1,962 2.3% annually — the fastest pace in more than a year. 39.8% of rentals on Zillow offered a concession in July, up from35.9% a year ago.- A household needs
$78,488 U.S . rental, compared to nearly$99,800 $21,000
What has changed isn't demand; it's supply. The historically large number of new apartments that hit the market over the past couple of years increased supply and gave renters room to negotiate. As that pipeline narrows, the market is gradually tightening — multifamily permits in the second quarter were
"Renters have benefited from one of the most favorable supply surges in decades," said Mischa Fisher, chief economist at Zillow. "But nationally, we're approaching an inflection point. The supply tailwind is fading, rent growth is picking back up, and concession rates that have been climbing for two years are expected to start easing."
Why concessions are holding and what it means
The
Elevated cost of homeownership keeps rental demand strong
The typical
Single-family rent growth outpaces apartments
Single-family rents rose
Zillow forecasts multifamily rents to rise around
Metro | Typical Rent, | Rent Year over | Concession Share | Renter |
2.3 % | 39.8 % | 26.8 % | ||
4.5 % | 17.5 % | 40.9 % | ||
1.5 % | 31.2 % | 34.1 % | ||
5.1 % | 23.7 % | 27.9 % | ||
0.1 % | 65.6 % | 20.0 % | ||
0.0 % | 55.7 % | 22.8 % | ||
0.4 % | 54.0 % | 21.9 % | ||
3.4 % | 31.3 % | 23.7 % | ||
1.4 % | 28.6 % | 37.1 % | ||
2.1 % | 58.4 % | 22.5 % | ||
2.6 % | 28.4 % | 29.9 % | ||
0.3 % | 61.3 % | 21.5 % | ||
9.7 % | 24.8 % | 27.9 % | ||
2.5 % | 30.1 % | 31.4 % | ||
3.6 % | 24.1 % | 22.5 % | ||
1.4 % | 52.5 % | 22.9 % | ||
3.5 % | 40.5 % | 19.8 % | ||
1.8 % | 37.6 % | 30.7 % | ||
-0.5 % | 51.7 % | 28.7 % | ||
-0.9 % | 67.2 % | 20.0 % | ||
2.5 % | 39.4 % | 22.1 % | ||
4.3 % | 29.2 % | 19.9 % | ||
0.6 % | 55.2 % | 27.1 % | ||
0.6 % | 68.1 % | 22.7 % | ||
-1.8 % | 56.8 % | 20.4 % | ||
0.3 % | 47.7 % | 20.4 % | ||
1.7 % | 32.8 % | 26.0 % | ||
3.4 % | 25.4 % | 21.6 % | ||
2.7 % | 33.5 % | 21.4 % | ||
-0.9 % | 65.1 % | 18.7 % | ||
0.2 % | 57.9 % | 24.4 % | ||
3.7 % | 35.1 % | 20.6 % | ||
1.9 % | 47.9 % | 20.4 % | ||
2.7 % | 50.0 % | 22.2 % | ||
4.3 % | 24.7 % | 23.6 % | ||
7.0 % | 22.2 % | 25.5 % | ||
0.6 % | 63.0 % | 23.0 % | ||
5.9 % | 18.9 % | 25.5 % | ||
3.6 % | 11.4 % | 30.1 % | ||
1.4 % | 50.2 % | 23.5 % | ||
4.7 % | 19.7 % | 22.3 % | ||
2.4 % | 30.2 % | 21.2 % | ||
0.5 % | 65.4 % | 18.4 % | ||
1.2 % | 40.3 % | 23.5 % | ||
2.7 % | 47.8 % | 23.8 % | ||
1.8 % | 43.3 % | 20.5 % | ||
1.2 % | 23.0 % | 28.9 % | ||
0.5 % | 66.5 % | 18.4 % | ||
2.8 % | 21.4 % | 24.1 % | ||
3.3 % | 8.2 % | 22.6 % | ||
1.4 % | 39.9 % | 21.6 % |
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.
(ZFIN)
View original content to download multimedia:https://www.prnewswire.com/news-releases/rents-near-2-000--rising-at-the-fastest-pace-in-over-a-year-302853543.html
SOURCE Zillow