Personal Finance

Incomes outpacing rent hikes for first time in years: Zillow

Comments:

by Andrew Dorn - 04/23/26 8:49 AM ET

Comments:

Link copied

by Andrew Dorn - 04/23/26 8:49 AM ET

Comments:

Link copied

NOW PLAYING

(NewsNation) — For the first time in years, incomes are rising faster than rent increases nationwide, according to Zillow.

The typical asking rent was $1,910 in March, up 1.8 percent from a year earlier — the slowest annual pace since 2020, the online real estate marketplace said.

With income growth now outpacing rent hikes, Zillow estimates the typical household has about $193 more per month, or roughly $2,300 a year.

“This moment of relief doesn’t erase the affordability challenges that built up over time, but it does give renters more flexibility than they’ve had in years,” Zillow senior economist Kara Ng said.

Austin, Texas, was the most affordable major metro for renters, with typical rents down 2.3 percent in March from the year before. Renters there have about $3,180 more per year after accounting for income growth, according to Zillow, with Tampa, Fla., renters close behind at $3,110 annually.

Part of that reflects a surge in housing construction in Texas and Florida, which have outpaced all other states in recent years, adding to supply.

The softer rental market is also pushing landlords to offer concessions, such as discounted rent or waived fees. Nearly 40 percent of rental listings on Zillow offered concessions in March, tying 2025 for the highest share on record for the month.

In cities like Denver (69 percent), Salt Lake City (66 percent) and Austin (65 percent), the share offering concessions was much higher than the national average.

Meanwhile, other cities are still seeing steep year-over-year rent increases, led by San Francisco (+6.4%), Virginia Beach, Va. (+6.0 percent) and Chicago (+5.6 percent).

Even as rent growth slows, rents are higher than a year ago in 37 of the 50 largest metros, according to Zillow.

Since the start of the pandemic, rents have climbed 36% nationwide, with single-family rents rising even more, up 45 percent.

Affordability is improving but remains worse than before the pandemic. The share of income the median household spends on typical rent eased to 26.5 percent in March, slightly above the pre-pandemic level of 25.8 percent, Zillow said.

Major metros where asking rents have declined over the past year, according to Zillow

- Austin, Texas: -2.3 percent

- Tampa, Fla.: -1.6 percent

- San Antonio, Texas: -1.6 percent

- Denver: -1.2 percent

- Houston: -0.9 percent

- Phoenix: -0.8 percent

- Salt Lake City: -0.6 percent

- Las Vegas: -0.4 percent

- Nashville, Tenn.: -0.2 percent

- Dallas: -0.1 percent

- Washington, D.C.: -0.1 percent

Add as preferred source on Google