Rental Affordability Reaches Four-Year High, Zillow Reports

(10/17/25)  If you’re in the market for an apartment, there’s (finally) some good news for you.

According to Zillow, rental affordability is better than it’s been in four years. Thanks to a surge of demand for housing during the pandemic, builders responded and finished more multifamily units in 2024 than any year in a half-century. While that is not necessarily good news for apartment owners, who are facing an oversupply of available apartments and increased competition for tenants in many markets, that same oversupply has led to a cooling of rent growth and an increase in concessions as landlords struggle to fill available units – which is great news for renters.

In fact, Zillow reported that landlords were offering concessions – such as free months or rent or free parking – on 37.3% of rentals listed on Zillow, a record high for September.

Apartment rents are falling the fastest year-over-year in Austin (-4.7%), Denver (-3.4%), San Antonio (-2.3%), Phoenix (-2.2%) and Orlando (-0.8%). Conversely, higher rent growth is centered in areas with stricter building regulations and in high-demand, relatively affordable areas, led by Chicago (6%), San Francisco (5.6%), New York (5.3%), Providence, R.I. (4.8%) and Cleveland (4.2%).

The best advice for prospective renters: Shop around, and don’t be afraid to negotiate. A landlord might be willing to forego a month or two of rent in order to lock in a tenant with a good job and credit history.