US Asking Rents Post Slowest Annual Growth Since 2020

On Wednesday, Zillow reported that the typical US asking rent rose 1.8% year-over-year in March to $1,910, marking the slowest annual pace since 2020. Single-family rents increased 2.5% to $2,225—the weakest growth on record in Zillow’s data series—while multifamily rents rose 1.3% to $1,757.

Zillow said rent growth across both segments is now running below income growth, easing financial pressure that built up during the pandemic-era surge. The share of median household income spent on rent declined to 26.5%, down slightly from a year earlier and approaching the pre-pandemic level of 25.8%. Still, households must earn about $76,400 annually to comfortably afford the typical rental, roughly 35% more than before the pandemic.

At the same time, affordability constraints in the for-sale market are pushing some prospective first-time buyers toward renting. Zillow found that nearly 1 in 13 shoppers considering a home purchase are also browsing rentals, with monthly ownership costs averaging about $415 more than renting for comparable homes.

In remarks accompanying the release, Zillow Senior Economist Dr. Kara Ng said:

“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. 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.”