New apartment supply and rise of 'accidental landlords' help cool rent growth nationwide
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%)
News Market Reaction – ZG
In the Mar 19 session, ZG declined 1.79%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 17 | Product launch | Positive | +6.6% | Launch of Zillow Preview pre-market listing option with major brokerage partners. |
| Mar 11 | Market trends update | Positive | +1.5% | Report on rise in unsold homes becoming rentals and geographic trend details. |
| Mar 05 | Share repurchase | Positive | +2.0% | Authorization of additional $1.25B buyback, lifting remaining capacity to about $1.3B. |
| Mar 04 | Housing report | Positive | +1.3% | February market report showing modest home value gains and improved mortgage affordability. |
| Feb 23 | Investor event | Positive | +2.4% | Announcement of AI Summit for investors showcasing integrated AI across real estate journey. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent Zillow news, including product launches, market reports and capital return actions, has consistently been followed by positive price reactions, indicating a pattern of constructive investor response to company and macro-housing updates.
Over the past month, Zillow has released several housing-market data reports and strategic updates. On Feb 23, it announced an AI Summit for investors. On Mar 4 and Mar 11, it highlighted market and “accidental landlord” trends, followed by a major $1.25B buyback authorization on Mar 5. Most recently, on Mar 17 it launched Zillow Preview for pre-market listings. Each event saw a positive next-day move, and today’s national rent report fits this pattern of data-driven updates.
Key Terms
zillow observed rent index (zori) technical
vacancy rates technical
multifamily 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