74% of May Rentals Affordable; $1,000 Listings Hit 8.8%
Z•74% of rental listings in May were affordable to a median-income household, the highest share for that month since 2021. Listings priced under $1,000 rose to 8.8%, the most for any May since 2022, driven by a wave of apartment completions and cooling rent growth.
1. Record May Affordability
May listings reflected unprecedented affordability, with 74% of rentals accessible to a median-income household, the highest May share since 2021. Typical rent climbed just 2% year-over-year, or $39 per month, while 39.6% of listings offered concessions.
2. Supply Surge Cools Rents
A surge of apartment completions drove this affordability, as multifamily construction reached a 50-year peak in 2024. Increased supply eased competition for units, slowing rent growth compared with the post-pandemic boom.
3. Metro Market Breakdowns
Top rental affordability markets included Raleigh (94.8% accessible), Austin (91%), Louisville (90.5%) and Salt Lake City (90.2%), while Oklahoma City led listings under $1,000 at 29.8%. Pittsburgh and San Francisco saw affordability dip year-over-year.
4. Outlook and Risks
With construction momentum slowing, rent growth could firm, challenging current levels. Monitoring new building starts and income trends will be key to tracking future affordability shifts.
