US Rent Growth Slows as Landlord Concessions Rise
Rental affordability reaches four-year high
According to Zillow’s Rental Market Report released Friday, rental affordability in the US has improved to its best level in four years as subdued rent growth and record landlord concessions follow last year’s surge in new apartment completions.
Builders completed more multifamily units in 2024 than in any year in the past half century, Zillow noted.
National rent growth for multifamily units on Zillow slowed to 1.7% year-over-year in September, the second-lowest rate since 2021. A weaker labor market also contributed to cooling rent increases as fewer new jobs limited residential mobility.
Even single-family rentals, which have outperformed apartments in recent years, saw softer growth. September’s 3.2% annual rise marked the smallest increase in Zillow records dating back to 2016.
With rent increases moderating, nationwide affordability has improved: The typical rental now costs 28.4% of median household income, down slightly from 28.8% a year earlier and below the 30% threshold for cost burden.
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