Zillow Forecasts 1.1% Single-Family Rent Growth as Typical Rent Stays $1,895
Zillow reports typical U.S. asking rent at $1,895 in January, up 2% year-over-year, with households spending 26.4% of income on rent, the lowest since August 2021. Zillow forecasts single-family rents rising 1.1% by December 2026 and multifamily rents falling 0.2% as higher vacancies and new supply boost renter leverage.
1. Zillow January Rent Snapshot
The typical U.S. asking rent stood at $1,895 in January, marking a 0.1% monthly increase and a 2% rise from a year earlier, the slowest annual rent growth since December 2020.
2. Affordability Trends
Renters now spend 26.4% of median household income on rent, the lowest share since August 2021; multifamily renters pay just 24.3% of income, surpassing pre-pandemic affordability levels.
3. 2026 Rent Forecast
Zillow projects single-family rents to climb 1.1% by December 2026 while multifamily rents are set to decline 0.2%, reflecting a sharp moderation in rent growth driven by market conditions.
4. Supply, Vacancies and Concessions Impact
A historic multifamily construction boom and elevated vacancies have strengthened renter negotiating power, with 38.8% of listings offering concessions like free rent or reduced deposits.