Rent Growth Slows to 1.9% in February; 39% of Listings Offer Concessions
Zillow Observed Rent Index shows U.S. asking rents rose just 1.9% in February to $1,895 with 39.2% of rentals offering concessions, driven by apartment completions and accidental landlords boosting vacancy. Single-family rent growth slowed to 2.6%, marking the weakest annual increase since at least 2015.
1. National Rent Growth Trends
In February, U.S. asking rents climbed 1.9% year over year to reach $1,895, the slowest annual pace since December 2020. Single-family rent growth decelerated to 2.6%, the weakest gain in Zillow’s records dating back to 2015.
2. Supply Expansion and Landlords
A boom in multifamily construction pushed vacancy rates higher and slowed apartment rent growth to 1.4% annually. Nearly 40% of homeowners unable to sell have become 'accidental landlords,' adding single-family homes to the rental pool and increasing vacancy pressures.
3. Impact on Zillow's Rental Marketplace
Elevated vacancies and concessions in 39.2% of listings are boosting renter leverage, likely driving higher listing volumes on Zillow’s platform. Increased incentives may pressure average listing fees but could strengthen user engagement and long-term rental market activity.