Summer 2026's hottest rental market? Zillow says Providence

Zillow (Z) named Providence the hottest U.S. rental market for summer 2026, ahead of New York and San Francisco.

Rhea-AI Summary

Zillow (Z) named Providence the hottest U.S. rental market for summer 2026, ahead of New York and San Francisco. These markets pair fast rent growth with low vacancies and relatively few concessions.

Providence rents are up 5% year over year to $2,154, with only 12.9% of property managers offering concessions and a 5.1% vacancy forecast. New York shows 4.5% annual rent growth, a typical rent of $3,406, and historically tight inventory, while San Francisco records 5.4% rent growth and a 4.3% vacancy forecast.

Argus May 18 session

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News Market Reaction – Z

On May 18, the day this news came out, Z closed 1.30% below the previous close.

Data tracked by StockTitan Argus for the May 18 session.

Market Context

This announcement underscores Zillow’s insight into tight rental markets, highlighting strong demand...

Analysis

This announcement underscores Zillow’s insight into tight rental markets, highlighting strong demand and limited concessions in places like Providence, New York, and San Francisco. Recent earnings showed revenue of $708M, up 18% year over year, and prior reports emphasized bifurcated for-sale conditions. Investors may watch how persistent rental strength influences Zillow’s Rentals segment performance and whether new tools such as AI-driven search deepen renter engagement over time.

Key Figures

Providence concessions share: 12.9% Providence rent growth: 5% Providence typical rent: $2,154 +5 more

Providence concessions share

12.9%

Share of property managers offering concessions in Providence, 2026 ranking

Providence rent growth

5%

Year-over-year rent increase in Providence

Providence typical rent

$2,154

Monthly rent level (ZORI) in Providence

Income to afford Providence

$86,000

Annual income needed to afford typical Providence rent

New York rent growth

4.5%

Annual rent growth in New York metro

New York typical rent

$3,406

Monthly rent level (ZORI) in New York metro

San Francisco rent growth

5.4%

Annual rent growth in San Francisco

San Francisco vacancy forecast

4.3%

Forecast vacancy rate over next year vs 7.3% nationally

Historical Context

5 past events · Latest: May 14

5 events

1. May 14

   Housing research report

   24h Move

   -3.0%

   Study highlighting billions in seller losses from dual agency and off‑MLS sales.

2. May 06

   Q1 2026 earnings

   24h Move

   -1.9%

   Revenue of $708M, up 18% YoY, with positive net income and EBITDA margins.

3. May 06

   Market conditions report

   24h Move

   +2.3%

   April report showing rising inventory, stable sales, and easing monthly payments.

4. May 05

   Platform collaboration

   24h Move

   +2.3%

   Preview listings partnership with Realtor.com to extend pre‑market visibility.

5. Apr 23

   Speed-of-sale analysis

   24h Move

   -3.3%

   Report showing bifurcated housing market where many homes linger on the market.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

concessions, Zillow Observed Rent Index (ZORI)

2 terms

concessions financial

"Zillow's analysis highlights regions where rents climb fast, vacancies are low, and property managers rarely offer concessions"

Concessions are deliberate incentives or compromises offered by a seller, issuer, or underwriter—such as price discounts, extra shares, fee reductions, or other sweeteners—to make an investment or transaction more attractive. Like a store marking down an item to entice buyers, concessions matter to investors because they lower expected returns or signal weaker demand, changing the true cost, value and risk of the deal.

Zillow Observed Rent Index (ZORI) technical

"Vacancy rate forecast | Zillow Observed Rent Index (ZORI)"

The Zillow Observed Rent Index (ZORI) is a regularly updated measure of rent changes based on actual rental listings and transactions gathered from a large online housing platform. It shows how asking and achieved rents are rising or falling across cities and regions. Investors use it like a thermometer for the rental market: shifts in ZORI signal potential impacts on property owners’ income, housing-related companies, consumer spending, and inflation expectations.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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The Northeast and coastal California claim the top spots on Zillow's hottest rental markets list

• Providence comes in at No. 1 on Zillow's list of the hottest rental markets of 2026, where 12.9% of property managers offer concessions, the lowest share in the top 10.
• The New York metro area lands at No. 2, where annual rent growth is 4.5% and the typical asking rent of $3,406 a month ranks among the highest in the country.
• New rental construction hasn't kept pace with demand in some parts of the country, putting upward pressure on rents across the hottest markets.

SEATTLE, May 18, 2026 /PRNewswire/ -- Providence is turning up the heat this summer. The Rhode Island capital tops Zillow's hottest rental markets list, edging out New York and San Francisco for the No. 1 spot. For renters in these markets, competition is fierce.

"In Zillow's hottest rental markets, the math is simple: More people want to live there than there are homes to rent — whether for access to amenities, strong job markets or family ties, renters are competing over a limited supply," said Kara Ng, senior economist at Zillow®. "The U.S. built more new units in 2024 than any year in the past half-century, but that boom largely bypassed the Northeast and coastal California, which is exactly why rental competition there is so intense. Markets that missed out on the list aren't necessarily lacking demand; they just did a better job bringing new supply online."

Zillow's analysis highlights regions where rents climb fast, vacancies are low, and property managers rarely offer concessions, such as free rent or waived fees. That stands in contrast to Sun Belt markets like Austin, Tampa and Phoenix, where a wave of new rental construction has kept rent growth in check.

Zillow's top 10 hottest rental markets for summer 2026

1. Providence
2. New York
3. San Francisco
4. Hartford
5. Los Angeles
6. Chicago
7. Boston
8. Milwaukee
9. Virginia Beach
10. San Jose

No. 1 – Providence: Providence is no stranger to the spotlight. Known as the "Creative Capital," it ranked fourth on Zillow's hottest for-sale markets list earlier this year, and that momentum has carried directly into rentals. Rents are up 5% year over year, and with just 12.9% of property managers offering concessions — the lowest share in the top 10 — renters find little room to negotiate. The typical rent is $2,154 a month, and renters need to earn about $86,000 a year to comfortably afford it.

No. 2 – New York: Long regarded as one of the most competitive rental markets in the country, the broader metro continues to attract strong demand with 4.5% annual rent growth and a typical rent of $3,406 a month, nearly $1,500 more than the typical U.S. rent. Within the city itself, conditions are even more intense. According to StreetEasy®, inventory across the five boroughs fell 7% from a year ago, and the median asking rent climbed to $4,120, the highest in StreetEasy history. Manhattan has logged 26 consecutive months of declining inventory, the longest streak on record.

"While new construction has been increasing in the outer boroughs in recent years, it hasn't been enough to offset the continuous decline of available rentals in Manhattan," said StreetEasy Senior Economist Kenny Lee. "Fewer available rentals and rapidly rising rents have incentivized renters to stay put, which has kept the city's vacancy rate at a record-low level. New York City renters should expect competitive conditions to continue for the foreseeable future as the city continues to dig itself out from decades of underbuilding."

No. 3 – San Francisco: Long synonymous with innovation and the tech industry, the city draws a steady stream of renters attracted to its job market. Rent growth sits at 5.4% annually — the second-highest on the list — and only 4.3% of units are forecasted to sit vacant over the next year, compared to 7.3% nationally.

How renters should handle hot markets

On-time rent payments, through Zillow's rent reporting or CreditClimb, can help build credit and strengthen a rental application. In the hottest markets, listings move quickly, so setting up saved searches with instant alerts and being ready to apply immediately gives renters a critical edge.

Zillow connects renters to apartments, single-family homes and rooms for rent all in one place. With Zillow's AI mode, renters can search smarter, get instant answers about listings and find a home that fits their needs and budget faster than ever.

Hottest market ranking	Metropolitan area	Annual rent growth	Share of concessions	Vacancy rate forecast	Zillow Observed Rent Index (ZORI)
1	Providence, RI	5 %	12.9 %	5.1 %	$2,154
2	New York, NY	4.5 %	17.8 %	4.3 %	$3,406
3	San Francisco, CA	5.4 %	33.2 %	4.3 %	$3,206
4	Hartford, CT	3.9 %	22.3 %	4.3 %	$1,940
5	Los Angeles, CA	2.4 %	29.4 %	4.5 %	$2,892
6	Chicago, IL	5.7 %	22.4 %	5.3 %	$2,219
7	Boston, MA	2.5 %	29.7 %	6.3 %	$3,184
8	Milwaukee, WI	4.1 %	27.5 %	3.8 %	$1,540
9	Virginia Beach, VA	4.8 %	28.8 %	4.1 %	$1,843
10	San Jose, CA	4.1 %	40.3 %	4.9 %	$3,534

Forward-looking statements

This press release includes forward-looking statements about future housing market conditions, mortgage rates, rental trends and other economic factors. These statements are based on current expectations and assumptions, which are subject to change. Actual outcomes may differ materially due to changes in economic and market conditions. Forward-looking statements speak only as of the date of this release, and Zillow Group undertakes no obligation to update them.

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

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Zillow (Z) announce about Providence’s rental market for summer 2026?

Zillow (Z) ranked Providence as the hottest U.S. rental market for summer 2026. According to Zillow, Providence rents are up 5% year over year to $2,154, with only 12.9% of property managers offering concessions and a 5.1% vacancy forecast, signaling tight conditions.

Which cities are in Zillow (Z) top 10 hottest rental markets for 2026?

Zillow’s 2026 list is led by Providence, followed by New York and San Francisco. According to Zillow, the top 10 also includes Hartford, Los Angeles, Chicago, Boston, Milwaukee, Virginia Beach, and San Jose, reflecting strong demand and limited vacancies in these metros.

How high are typical rents and rent growth in New York according to Zillow (Z)?

Zillow reports the New York metro’s typical rent at $3,406 per month, with 4.5% annual rent growth. According to Zillow and StreetEasy, city inventory fell 7% year over year, median asking rent reached $4,120, and Manhattan has seen 26 consecutive months of declining inventory.

How does new rental construction affect Zillow’s 2026 hottest rental markets?

New construction has lagged demand in the Northeast and coastal California, contributing to tight 2026 rental markets. According to Zillow, many new units built in 2024 bypassed these regions, unlike Sun Belt metros where added supply, such as in Austin or Phoenix, has helped restrain rent growth.

What vacancy and concession trends define Zillow’s hottest rental markets of 2026?

Zillow’s hottest markets combine low forecasted vacancies with relatively few concessions from property managers. According to Zillow, Providence’s vacancy forecast is 5.1% with 12.9% concessions, while New York and San Francisco each show 4.3% vacancy forecasts, indicating strong renter competition and limited negotiating leverage.

What tools does Zillow (Z) recommend renters use in these hot 2026 markets?

Zillow recommends on-time rent reporting and fast, alert-driven searching to compete in hot markets. According to Zillow, tools like rent reporting, CreditClimb, saved searches with instant alerts, and AI-powered listing Q&A can help renters act quickly and strengthen their rental applications.