- Incomes are outpacing rents in 37 of the 50 largest US metros, according to Zillow’s October 2025 report, signaling improved rental affordability in much of the country.
- Despite the shift, the average US renter still spends 27.2% of income on rent—up from 26.3% before the pandemic.
- Rents have dropped in cities like Austin, Denver, and Phoenix, but remain significantly higher than pre-pandemic levels nationwide.
- A record 39% of listings on Zillow offered concessions in October, showing how landlords are responding to rising vacancies from new multifamily supply.
Signs of Relief: Incomes Outpace Rents
According to Zillow’s latest rental report, rent growth is slowing nationwide, with typical asking rents rising just 2.3% year-over-year in October—modestly compared to previous years. In contrast, median household incomes are estimated to have risen 4%, offering some breathing room for renters in the majority of major metros.
Globe St reports that this marks a shift from earlier years in the pandemic era, when rent increases consistently outpaced wage growth and forced households to devote a greater share of income to housing.
Still Paying More Than Before
While the pace of rent hikes has slowed, affordability hasn’t returned to pre-COVID norms. Renters earning the median income now spend 27.2% of it on rent, up from 26.3% before the pandemic. That marginal increase reflects years of rent growth that have yet to fully unwind—even as incomes begin to catch up.
Nationally, the typical rent sits at $1,949, up 35.6% from pre-pandemic levels. That far exceeds general inflation, which rose by 26% over the same period, per Bureau of Labor Statistics data.
Where Renters Are Gaining Ground
Affordability has improved the most in cities where rents are falling. Austin, Denver, San Antonio, and Phoenix have all seen year-over-year declines in asking rents, ranging from -0.7% to -3.1%. Incomes in these metros have grown at a faster clip, closing the affordability gap.
Even in markets like San Jose, where rents are still rising, stronger income growth is helping renters keep pace.
And Where They’re Still Struggling
In 12 of the 50 largest US metros, rents are climbing faster than incomes—putting additional pressure on renters. That list includes high-cost coastal markets like New York, San Francisco, and Chicago, along with more affordable cities like St. Louis, Milwaukee, and Cleveland.
For renters in these areas, housing costs continue to outpace wage growth, straining household budgets.
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Landlords Lean on Concessions
With a surge of new multifamily supply hitting the market, landlords are increasingly using incentives to attract tenants. Nearly 39% of rentals listed on Zillow in October offered concessions such as free rent or waived fees—the highest share ever recorded for that month.
In some metros, more than half of listings came with a concession, a reflection of the growing impact of nationwide supply increases on landlord strategies.
Why It Matters
The gap between rent growth and income growth is beginning to narrow—but hasn’t fully closed. Developers, landlords, and policymakers alike are watching these shifts closely as affordability remains a defining challenge for renters nationwide.
What’s Next
With more multifamily completions expected in the coming quarters, rent pressure may continue to ease in certain markets. However, high baseline rents and uneven income gains mean affordability challenges will persist—particularly in coastal and slow-growth metros.
