Rent affordability hits four-year high, with further relief ahead
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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Key Figures
Market Reality Check
Peers on Argus
Z gained 1.2% with modestly positive moves in peers like ZG (+0.48%) and PINS (+1.14%), while others such as BIDU (-0.1%) and TME (-2.97%) lagged, pointing to a stock-specific reaction.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 11 | Rental burden analysis | Neutral | -16.5% | Highlighted national “singles tax” and multifamily rent affordability trends. |
| Feb 10 | Earnings report | Positive | +0.8% | Reported Q4 and FY2025 revenue growth and a return to profitability. |
| Feb 09 | Home design trends | Neutral | -1.3% | Showed long-term shifts in home design preferences using listing data. |
| Feb 04 | Buyer affordability data | Neutral | -4.1% | Detailed home value softness and improved mortgage payment affordability. |
| Feb 03 | Sports-linked analysis | Neutral | -5.7% | Linked championship winners’ metros to subsequent home value outperformance. |
Recent thematic housing/rental data pieces have often coincided with mild or negative price moves, while earnings drew a small positive reaction.
Over the past few weeks, Zillow has regularly released housing and rental market analyses, including singles’ rent burdens, evolving home design preferences, and improving buyer affordability, alongside its Q4/FY2025 earnings. The earnings report showed higher revenue and profitability and was followed by a modest 0.79% gain. In contrast, several data-heavy research notes on housing trends coincided with single-day declines. Today’s rent affordability forecast continues this pattern of Zillow using proprietary data to highlight rental market conditions.
Market Pulse Summary
This announcement highlights Zillow’s view that rent affordability has improved, with the typical U.S. rent at $1,895 and households spending 26.4% of income on rent. Forecasts for near-flat multifamily rents and modest single-family growth suggest continued relief for renters but a cooler pricing environment. In context of Zillow’s recent stream of housing data releases, investors may watch how rental traffic, conversion, and Rentals segment revenue trends track against these softer rent-growth assumptions.
Key Terms
zillow observed rent index technical
concessions financial
AI-generated analysis. 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
FAQ
What does Zillow forecast for U.S. rent growth in 2026 for single-family and multifamily (Z)?
How much was the typical U.S. asking rent in January 2026 according to Zillow (Z)?
What is renter affordability in the U.S. in January 2026 and how has it changed (Z)?
How common are concessions on rental listings in January 2026 and what does that mean for renters (Z)?
How did apartment (multifamily) rent growth compare to single-family rent growth in early 2026 (Z)?
What should investors in Zillow (Z) watch regarding rent trends and market signals in 2026?
