Renters are beginning to catch a break.
A new forecast from Zillow shows that affordability has improved to its best level since August 2021, with the typical household now spending 26.4% of income on rent — down from pandemic-era peaks — and relief expected to continue through 2026.
The typical U.S. asking rent in January was $1,895, essentially flat from December and up just 2% year-over-year, marking the slowest annual rent growth since December 2020.
For apartment renters, the picture is even brighter: multifamily rents rose only 1.4% annually, and affordability has improved beyond pre-pandemic levels, with median-income households now spending 24.3% of income on a typical apartment compared to 25% in February 2020.
Looking ahead, Zillow forecasts multifamily rents to remain essentially flat through year-end, declining 0.2% annually by December 2026, while single-family rents are projected to rise just 1.1% — a sharp slowdown from recent years.
"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."
The shift is driven largely by supply. Although apartment construction peaked in summer 2024, newly completed buildings continue to add to the rental stock. At the same time, a cooling labor market has kept vacancy rates elevated, giving renters more negotiating leverage for renewals and new leases.
Nearly 40% of rental listings on Zillow in January included at least one concession — such as a free month of rent or reduced deposit — just below the record high of 41.1% set last January. That elevated share underscores how property managers are competing aggressively for tenants in a looser market.
Single-family rents have been rising faster than apartment rents in recent years due to less robust construction activity and sustained demand as homeownership flows remained subdued.
Still, Zillow's forecast calls for single-family rent growth to cool further, with the typical single-family rent up 2.7% year-over-year in January and projected to moderate to 1.1% annual growth by December 2026.
