- Rental market trends reveal renters spent 26.5% of income on rent, the lowest share since August 2021.
- The typical US asking rent dropped 0.2% to $1,901 in December 2025.
- Record-high concessions: 39.5% of listings offered incentives, supporting renter negotiating power.
- Annual rent growth slowed to 2.1% nationally, easing affordability pressures on households.
Affordability Returns to Pre-Pandemic Levels
According to Zillow, renters saw improved affordability at the end of 2025, with the median household spending 26.5% of income on a typical rental. This marks the lowest share since August 2021 and is down from the May 2023 peak of 27.6%. The typical asking rent nationwide fell to $1,901, a 0.2% monthly decline, as rent growth slowed and household incomes continued to rise.
While still above the pre-pandemic average of 25.6%, these rental market trends signal movement toward more balanced conditions. The annual income required for affordable rent rose to $76,020—up 2.2% year-over-year—reflecting a 35% increase since the pandemic began.
Multifamily and Single-Family Rents Diverge
Apartment (multifamily) rents drove much of the affordability improvement. Typical asking rents for apartments fell 0.3% to $1,741. That’s just a 1.5% increase year-over-year. Increased multifamily supply and rising vacancy rates helped ease rents. Sixteen major metros posted annual declines, including Austin, Denver, and Tampa. This trend is further supported by the growing role of concessions in shaping leasing dynamics heading into 2026, particularly in the multifamily sector.
Single-family rents remained more resilient, holding nearly flat at $2,181 and up 2.8% over the previous year. Since the start of the pandemic, single-family asking rents have surged 43.6%, compared to a 26.7% increase for apartment rents, reflecting persistent supply constraints in that asset class.
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Concessions Reach Record Highs
Rental market trends show 39.5% of listings in December offered concessions, such as free months of rent or waived fees. This is the highest share on record and underscores elevated vacancy rates and competition among landlords. The prevalence of incentives amplified renter bargaining power, while also helping keep rents in check.
Concessions rose in 24 of the largest metro areas, with sharpest increases in Pittsburgh, Memphis, and Kansas City. The share of listings with concessions is up year-over-year in 21 major markets.
What’s Next for the Rental Market
Zillow projects rental market trends will remain favorable for tenants into 2026. Multifamily rent growth is expected to remain nearly flat (up just 0.2%), while single-family rents are forecast to rise 1.6%, reflecting ongoing supply and demand dynamics. These slower gains suggest affordability will continue to improve, moving closer to pre-pandemic norms, especially as new supply hits the market.
