Summer 2026's hottest rental market? Zillow says Providence

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.

News Market Reaction – ZG

-1.18%

-1.18% Session close to close

In the May 18 session, ZG declined 1.18%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement underscores Zillow’s role as a rental-market bellwether, highlighting strong deman...

Analysis

This announcement underscores Zillow’s role as a rental-market bellwether, highlighting strong demand in Providence, New York, and San Francisco, with rents rising up to 5.7% in some top markets and vacancy forecasts as low as 3.8%. For Zillow, these dynamics reinforce the relevance of its rentals platform and data products. Recent news flow has combined market analytics, product collaborations, and solid Q1 2026 financials, so investors may watch how sustained rental tightness supports engagement and monetization across its ecosystem.

Key Figures

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

8 metrics

Providence concessions share 12.9% Share of property managers offering concessions in Providence, 2026 list

Providence rent growth 5% Year-over-year rent increase in Providence

Providence typical rent $2,154 Monthly rent per Zillow Observed Rent Index for Providence

Income needed Providence $86,000 Annual income to comfortably 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 per Zillow Observed Rent Index for New York

NYC median asking rent $4,120 Median asking rent across New York City per StreetEasy

Manhattan declining inventory streak 26 months Consecutive months of declining rental inventory in Manhattan

Historical Context

5 past events · Latest: May 14 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 14	Market research report	Neutral	-2.6%	Study quantified seller losses from dual-agency and off-MLS home sales.
May 06	Earnings release	Positive	-1.8%	Q1 2026 revenue and profitability improved with strong segment contributions.
May 06	Market report	Neutral	+2.2%	April housing report showed rising inventory and stalled sales on higher rates.
May 05	Product collaboration	Positive	+2.2%	Preview listings partnership with Realtor.com expanded pre-market visibility.
Apr 23	Market analysis	Neutral	-3.4%	Analysis highlighted divergence between fast-selling homes and slower listings.

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

Pattern Detected

Recent Zillow news, including strong Q1 results and product collaborations, has often seen muted or negative next-day reactions, indicating a pattern of cautious trading even on seemingly constructive updates.

Recent Company History

Over the past month, Zillow has released several notable updates. An April report on a two-speed housing market and a May collaboration with Realtor.com on Preview listings both coincided with +2.16% next-day moves, highlighting interest in product and market-analytics news. However, strong Q1 2026 financial results and research on dual-agency costs saw shares slip -1.76% and -2.62%, respectively. Today’s ranking of Providence and other metros as the hottest 2026 rental markets fits the ongoing narrative of Zillow as a key data and demand barometer across U.S. housing and rentals.

Key Terms

vacancy rate forecast, Zillow Observed Rent Index (ZORI), median asking rent, inventory

4 terms

vacancy rate forecast technical

"Hottest market ranking | Metropolitan area | Annual rent growth | Share of concessions | Vacancy rate forecast | Zillow Observed Rent Index (ZORI)"

A vacancy rate forecast is a prediction of the share of rentable space expected to be empty in a property or portfolio over a future period. Like a weather forecast for how many seats will be unoccupied, it matters to investors because higher predicted vacancies signal lower rental income, weaker cash flow and potential drops in property value, while lower forecasts imply steadier earnings and stronger valuations.

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.

median asking rent financial

"the median asking rent climbed to $4,120, the highest in StreetEasy history"

Median asking rent is the middle value of rents landlords are listing for available properties, meaning half of listings ask for more and half ask for less; it uses the midpoint rather than an average to avoid distortion by extremely high or low rents. Investors watch it as a quick snapshot of rental market pricing and demand—like checking the middle price on a shopping list—to gauge income potential, vacancy trends and pressure on rental growth.

inventory technical

"inventory across the five boroughs fell 7% from a year ago"

Inventory is the items a business keeps to sell or use in making products, including raw materials, partly finished goods and finished products ready for customers. For investors it shows how much cash is tied up and how well a company meets demand — like a household pantry where too much food wastes money and too little causes missed meals; shifts in inventory can reveal changes in sales, production efficiency or potential cash strain.

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

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

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.

(ZFIN)

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/summer-2026s-hottest-rental-market-zillow-says-providence-302774149.html

SOURCE Zillow

FAQ

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.