Nearly 3 in 4 rental listings are considered affordable, the highest for May in years (May Rent Report)
Key findings:
- 74% of rental listings on Zillow in May were affordable to a median-income household, the highest share ever recorded for this time of year, according to a new Zillow analysis.
- The share of listings priced below $1,000 per month is up to 8.8%, also the highest for any May since 2022.
- Nine out of 10 rentals are affordable in Raleigh, Austin, Louisville and Salt Lake City.
In May, 74% of rental listings were affordable to a median-income household, the highest share for the month since at least 2021 as a record wave of apartment construction continues to ripple through the market.
After setting records during the pandemic, rent price growth has cooled since 2022, in large part due to a multifamily construction boom that reached a 50-year high in 2024. Builders reacted to strong housing demand during the pandemic and took advantage of borrowing costs that were still low. More apartments mean more options and less competition for any single unit, slowing rent growth and allowing incomes to catch up. The typical rent nationwide is up just 2% from a year ago, or $39 per month, according to the Zillow® May Rental Report.
That figure of 74% of affordable rental listings is the highest for any May in Zillow’s data, which dates to 2021. This means a median-income household would spend no more than 30% of its income on nearly 3 out of 4 available rentals, within the generally accepted threshold for affordable housing. While income growth is doing a lot of the work to boost this number, the share of rentals on Zillow listed for less than $1,000 per month climbed to 8.8%, also the highest for any May since 2022 — a sign that more units at the lower end of the market are becoming available.
The gains are most pronounced in the multifamily rental segment, where 79.4% of May listings on Zillow were affordable to a median-income household, up from 75.5% a year ago. Single-family rentals are also seeing a rising share of affordable homes, perhaps surprising because those rents have generally grown faster in recent years, in part because of increased demand from households priced out of buying their first home. Nearly half of single-family listings on Zillow (47.3%) were affordable in May, up from 44.9% at this time last year.
Raleigh is the most affordable major metro for rentals, with 94.8% of listings affordable to a median-income household in May. Austin (91%), Louisville (90.5%), Salt Lake City (90.2%) and Portland (89.3%) round out the top five. Looking at the change since last year, Tampa (61.4% of rentals affordable, up from 51.6% a year ago) and Orlando (69.5% affordable, up from 61.3%) have seen the biggest surge of affordable homes. Renters in Oklahoma City will find the highest share of rentals for under $1,000, at 29.8%, followed by Memphis (26.4%) and Cleveland (22.5%).
Not every market is becoming more affordable; the share of affordable rental listings fell from last year in seven major metros. Pittsburgh renters saw the biggest drop, down to 77.6% of affordable listings compared to 80.3% a year ago. In San Francisco, where rents are up 7.1% annually, the fastest pace among major markets, the share of affordable listings fell from 69.8% last May to 68.4% this year.
The picture for renters nationwide is even better than the headline rent makes it appear: Nearly 40% of rental listings on Zillow offered a concession in May (39.6%), essentially flat from April and up from 35.1% a year ago.
| Metro Area* | Typical Rent (Zillow Observed Rent Index) | Typical Rent, Annual Change | Share of Listings Affordable to a Median-Income Household | Share of Listings Under $1,000 | Share of Listings Offering a Concession |
| United States | $1,951 | 2.0% | 74.1% | 8.8% | 39.6% |
| New York, NY | $3,503 | 4.5% | 33.4% | 0.6% | 17.5% |
| Los Angeles, CA | $2,909 | 1.4% | 43.6% | 0.8% | 32.2% |
| Chicago, IL | $2,266 | 5.4% | 62.4% | 2.2% | 20.6% |
| Dallas, TX | $1,678 | -0.1% | 86.8% | 8.0% | 63.4% |
| Houston, TX | $1,639 | -0.6% | 80.7% | 14.3% | 53.8% |
| Washington, DC | $2,416 | 0.0% | 84.8% | 0.7% | 56.5% |
| Philadelphia, PA | $1,914 | 3.5% | 76.8% | 3.6% | 33.2% |
| Miami, FL | $2,693 | 1.1% | 25.6% | 0.4% | 28.1% |
| Atlanta, GA | $1,840 | 1.5% | 85.0% | 3.2% | 58.8% |
| Boston, MA | $3,211 | 2.5% | 50.2% | 0.4% | 29.8% |
| Phoenix, AZ | $1,742 | -0.3% | 83.1% | 7.3% | 59.8% |
| San Francisco, CA | $3,258 | 7.1% | 68.4% | 0.9% | 26.7% |
| Riverside, CA | $2,519 | 2.2% | 49.9% | 2.7% | 29.0% |
| Detroit, MI | $1,500 | 2.9% | 82.8% | 14.0% | 24.0% |
| Seattle, WA | $2,232 | 1.4% | 82.5% | 2.5% | 53.1% |
| Minneapolis, MN | $1,721 | 3.6% | 89.0% | 5.8% | 40.8% |
| San Diego, CA | $2,951 | 1.6% | 50.7% | 0.4% | 37.8% |
| Tampa, FL | $2,018 | -1.0% | 61.4% | 1.5% | 50.5% |
| Denver, CO | $1,910 | -1.5% | 87.8% | 4.9% | 65.8% |
| Baltimore, MD | $1,919 | 2.0% | 85.8% | 4.9% | 39.0% |
| St. Louis, MO | $1,451 | 3.8% | 86.9% | 18.0% | 26.3% |
| Orlando, FL | $1,977 | 0.4% | 69.5% | 1.7% | 54.8% |
| Charlotte, NC | $1,740 | 0.5% | 83.7% | 4.1% | 65.3% |
| San Antonio, TX | $1,404 | -1.8% | 89.0% | 21.8% | 56.6% |
| Portland, OR | $1,797 | 0.6% | 89.3% | 2.2% | 48.2% |
| Sacramento, CA | $2,283 | 1.9% | 76.3% | 2.1% | 30.7% |
| Pittsburgh, PA | $1,527 | 4.0% | 77.6% | 16.6% | 25.8% |
| Cincinnati, OH | $1,575 | 3.2% | 83.9% | 15.3% | 29.7% |
| Austin, TX | $1,635 | -2.2% | 91.0% | 11.9% | 64.7% |
| Las Vegas, NV | $1,737 | 0.1% | 78.5% | 6.4% | 53.0% |
| Kansas City, MO | $1,548 | 3.5% | 86.6% | 12.5% | 33.6% |
| Columbus, OH | $1,524 | 1.5% | 88.0% | 9.6% | 50.6% |
| Indianapolis, IN | $1,553 | 2.4% | 86.7% | 12.2% | 48.7% |
| Cleveland, OH | $1,461 | 3.9% | 77.5% | 22.5% | 23.6% |
| San Jose, CA | $3,625 | 5.5% | 76.9% | 0.4% | 29.5% |
| Nashville, TN | $1,798 | 0.1% | 78.6% | 2.8% | 64.7% |
| Virginia Beach, VA | $1,862 | 5.8% | 78.0% | 2.8% | 25.2% |
| Providence, RI | $2,163 | 3.7% | 53.1% | 2.6% | 12.8% |
| Jacksonville, FL | $1,701 | 0.9% | 82.6% | 6.4% | 48.4% |
| Milwaukee, WI | $1,538 | 3.9% | 74.8% | 12.2% | 20.9% |
| Oklahoma City, OK | $1,399 | 2.8% | 88.7% | 29.8% | 31.4% |
| Raleigh, NC | $1,694 | 0.0% | 94.8% | 3.1% | 62.7% |
| Memphis, TN | $1,441 | 0.9% | 81.5% | 26.4% | 41.7% |
| Richmond, VA | $1,763 | 3.3% | 81.3% | 3.3% | 48.1% |
| Louisville, KY | $1,385 | 2.6% | 90.5% | 20.1% | 42.0% |
| New Orleans, LA | $1,622 | 0.4% | 59.6% | 10.8% | 19.3% |
| Salt Lake City, UT | $1,641 | 0.4% | 90.2% | 5.7% | 63.4% |
| Hartford, CT | $1,975 | 3.0% | 77.1% | 1.9% | 22.1% |
| Buffalo, NY | $1,444 | 3.3% | 75.1% | 11.3% | 9.6% |
| Birmingham, AL | $1,448 | 1.2% | 85.5% | 19.9% | 39.2% |
*Table ordered by market size
Rents
- The typical asking rent is $1,951 in May, up 0.5% month-over-month. The pre-pandemic average month-over-month change for this time of year is 0.7%.
- Since the beginning of the pandemic, rents have increased by 37.5%.
- Rents are now 2% up from last year.
- Rents fell, on a monthly basis, in 1 major metro area – Birmingham (-0.1%).
- Rents are up from year-ago levels in 42 of the 50 largest metro areas. Annual rent increases are highest in San Francisco (7.1%), Virginia Beach (5.8%), San Jose (5.5%), Chicago (5.4%), and New York (4.5%).
Single-Family Rents
- The typical asking rent for single-family homes is $2,291 in May, up 0.5% month-over-month. Since the beginning of the pandemic, single-family rents have increased by 46.3%.
- Single-family rents are now up 2.8% from last year.
- Single-family rents fell, on a monthly basis, in 1 major metro area – Milwaukee (-0.2%).
- Single-family rents are up from year-ago levels in all 50 of the largest metro areas. Annual single-family rent increases are highest in Providence (6%), Buffalo (5.6%), Milwaukee (5.5%), San Jose (5.3%), and Virginia Beach (4.8%).
Multifamily Rents
- The typical asking rent for multifamily homes is $1,783 in May, up 0.5% month-over-month. Since the beginning of the pandemic, multifamily rents have increased by 29.2%.
- Multifamily rents are now up 1.3% from last year.
- Multifamily rents fell, on a monthly basis, in 2 major metro areas. The largest monthly drops in multifamily rents are in Birmingham (-0.4%) and San Antonio (-0.2%).
- Multifamily rents are up from year-ago levels in 32 of the 50 largest metro areas. Annual multifamily rent increases are highest in San Francisco (7.2%), Virginia Beach (5.9%), San Jose (5.3%), Chicago (5.3%), and New York (4.4%).
Rent Concessions
- 39.6% of rentals on Zillow offered concessions in May.
- The share of rental listings offering concessions decreased by 0.2ppts month-over-month in May.
- The share of rental listings offering concessions increased by 4.4ppts from last year.
- The share of rentals with concessions is lower, on a monthly basis, in 33 major metro areas. The largest monthly drops in the share of rentals with concessions are in Virginia Beach (-5.5ppts), Birmingham (-4.5ppts), San Jose (-3ppts), Cleveland (-2.8ppts), and Hartford (-2.8ppts).
- The share of rentals with concessions is higher, on a monthly basis, in 17 major metro areas. The largest monthly increases in the share of rentals with concessions are in Columbus (3.4ppts), Nashville (2.1ppts), Houston (2ppts), Minneapolis (1.7ppts), and Baltimore (1.3ppts).
- Rent concessions are up from year-ago levels in 44 of the 50 largest metro areas. The annual increase in share of rental listings with concessions is highest in Columbus (16.5ppts), Birmingham (12.7ppts), Indianapolis (11ppts), Memphis (10.9ppts), and Las Vegas (9.8ppts).
Rent Affordability
- The median household would spend 26.9% of its income on a new rental in May.
- Rent affordability was flat month-over-month in May. The pre-pandemic share of median household income spent on rent was 26.2%.
- Rent affordability is now 0.3ppts down from last year.
- The most affordable metro areas for rents are Salt Lake City (18.5%), Austin (18.7%), Raleigh (18.7%), Minneapolis (19.9%), and Denver (20.0%).
- The least affordable metro areas for rents are New York (39.8%), Miami (37.6%), Los Angeles (34.0%), Riverside (31.2%), and Boston (30.6%).
- Income needed to afford rent increased by 1.9% year-over-year in May to $78,035. Since pre-pandemic, the income needed to afford rent has increased by 35.9%.
The post Nearly 3 in 4 rental listings are considered affordable, the highest for May in years (May Rent Report) appeared first on Zillow Research.
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