Incomes outpacing rent hikes for first time in years: Zillow

(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

Houston: -0.9 percent

Phoenix: -0.8 percent

Salt Lake City: -0.6 percent

Las Vegas: -0.4 percent

Nashville, Tenn.: -0.2 percent

Washington, D.C.: -0.1 percent

Copyright 2026 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

More Personal Finance News

Two Republicans break with party as GOP defeats budget amendment to lower ...

5 takeaways from first major California governor’s debate after Swalwell exit

Senators to introduce ‘Hot Rotisserie Chicken Act’ for SNAP recipients

Four GOP senators vote against adding Save America Act to budget package

Two GOP senators break ranks on final Senate budget vote

Senate Republicans adopt budget resolution in late-night voting marathon

Trump seeks new course in Iran after ceasefire retreat

House Judiciary Democrats demand Patel take alcohol disorders test following ...

Three GOP senators break with leaders over addressing insurance ...

Trump administration reclassifies state-licensed medical marijuana as less ...

Collins, Sullivan break with Senate GOP leaders on amendment to reverse SNAP ...

DeSantis on Jeffries ‘F around and find out’ remark: ‘I will pay for you ...

Republicans divided on whether to check Trump’s Iran war power as 60-day mark ...

Virginia attorney general pledges to appeal injunction blocking redistricting ...

Judge dismisses Patel defamation lawsuit over ‘nightclubs’ comment on MS NOW

Raskin: Kash Patel ‘on the run now’

RFK Jr. apologizes for comments about Black kids he claims he didn’t say

Johnson faces pressure from all sides as funding to pay DHS workers dwindles

The Hill Podcasts – Morning Report

© The Hill