Rent Affordability Hits Four-Year High

(2/20/26) A new forecast by Zillow brings good news for prospective renters: Multifamily rents are expected to remain mostly flat through the end of 2026, as higher vacancy rates and new apartment supply improve the bargaining position of renters.

The typical U.S. asking rent in January 2026 was $1,895, according to Zillow, essentially unchanged from December and up 2% from a year earlier. That’s the slowest annual rent growth since December 2020.

Apartment rents rose just 1.4% from a year ago, making apartments more affordable. And affordability overall is improving, with the typical household now spending about 26.4% of their income on rent – the lowest share since August 2021.

"Renters are operating in a very different environment than they were just a few years ago," said Orphe Divounguy, senior economist at Zillow. "When supply expands and vacancies rise, property managers have to adjust on both price and terms. Concessions are near record highs, keeping rent growth modest and creating meaningful opportunities for renters."

Much of the shift is due to newly completed apartment buildings, which have increased the number of available units. The competition among landlords has given prospective renters more bargaining power for both new leases and renewals.