Renters in the U.S. are expected to experience some relief from rising prices this year, as the pace of rent growth is projected to slow. According to an analysis by Zillow, multifamily rental prices are anticipated to remain relatively flat through the end of 2026, with a slight decline of 0.2%. In contrast, single-family rents are expected to rise at an annual rate of 1.1% by December 2026, a marked slowdown compared to previous years.
As of January, the typical asking rent was reported at $1,895, reflecting only a 0.1% increase from December and a 2% increase from the previous year. This represents the slowest annual rent growth since December 2020, following a period of significant increases during the pandemic. For multifamily homes, rents have increased by just 1.4% year-over-year.
The slowdown in rent growth has contributed to an increase in affordability metrics. A median income household now spends approximately 24.3% of its income on typical apartment rent, a slight reduction from 25% in February 2020. Another measure indicates that the typical household is allocating 26.4% of its income to rent, the lowest percentage since August 2021.
Metro areas such as Miami, New York City, and Los Angeles report higher-than-average rental burdens, while cities like St. Louis, Minneapolis, Denver, Austin, and Salt Lake City show better affordability for renters. Zillow's analysis suggests that as rental supply increases and vacancy rates rise, property managers are adjusting pricing and lease terms, leading to more concessions for renters, such as reduced deposits or free rent months, enhancing their negotiating position.