U.S. Rent Growth Slows to 1.9% with 40% of Listings Offering Concessions
U.S. asking rents rose 1.9% year-over-year in February to $1,895, the slowest pace since December 2020. Nearly 40% of listings offered concessions as 2025-2026 apartment completions and 'accidental landlords' boosted vacancies and tenant bargaining power.
1. Rent Growth Trends
Year-over-year U.S. rent growth decelerated to 1.9% in February, marking the slowest annual increase since December 2020. The typical asking rent stood at $1,895, with multifamily rents up just 1.4% versus nearly 16% in late 2022 and single-family rents climbing 2.6%, the lowest pace on record since 2015.
2. Supply Surge and Landlords
A surge in apartment completions over 2025-2026 has lifted national vacancy rates, while homeowners unable to sell have added single-family homes as rentals, creating a new wave of 'accidental landlords.' With 39.2% of listings offering free rent or waived fees, landlords are increasingly competing on price and incentives to attract tenants.
3. Outlook and Zillow Impact
Rent growth is projected to remain modest through 2026, with forecasts of 1.8% gains for single-family and 0.9% for multifamily units by year-end. Expanded rental inventory and tenant leverage could boost listing volumes and engagement on Zillow’s platform, supporting rental marketplace revenue despite subdued pricing momentum.