Zillow: Rent Growth Slowing

(Image courtesy of Diego F. Parra/pexels.com)

Zillow, Seattle, released a new analysis finding that the typical U.S. asking rent was $1,910 in March. That’s up 1.8% year-over-year, but marks the slowest pace of growth since 2020.

Single-family rents charted a higher growth rate, at 2.5%, to average $2,225, and multifamily rents were up 1.3% to average $1,757.

There’s further good news for renters, too. “For the first time in years, income growth is outpacing rent increases. The typical household has an extra $2,318 a year, enough to cover months of groceries, a full year of phone and internet bills, or make meaningful progress on savings,” Zillow Senior Economist Kara Ng said. “This moment of relief doesn’t erase the affordability challenges that built up over time, but it does give renters more flexibility than they’ve had in years.”

And, some areas are seeing more savings. In Austin, renters will save $3,182 annually compared with a year ago when factoring in both income growth and rental prices. Next is Tampa, Fla., with renters saving $3,110 and Denver, with renters saving $3,002.

On the flip side, San Fransico renters may save only around $458 annually compared with their 2025 status.

The share of income the median household spends on typical rent is now 26.5%, down slightly year-over-year, and near the pre-pandemic 25.8%. But, that also highlights income growth–a household needs to earn about $76,400 a year to afford the typical rental. That’s 35% more than the pre-pandemic income needed.