U.S. rental affordability rises as apartment construction surge eases market

A Zillow analysis shows that 74% of rental listings were affordable to median‑income households in May, the highest share for that month since the firm began tracking the metric in 2021. The improvement follows a multifamily construction boom that peaked in 2024 and lifted the nationwide supply of apartments.

Rent growth remains modest, with the typical U.S. rent up only 2% year‑over‑year – about $39 per month. Listings priced below $1,000 a month climbed to 8.8%, also a May high since 2022. In the multifamily segment, 79.4% of listings were affordable, up from 75.5% a year earlier, while single‑family rentals saw affordability rise to 47.3% from 44.9%.

Among metros, Raleigh led with 94.8% of listings affordable, followed by Austin, Louisville, Salt Lake City and Portland. Tampa and Orlando posted the biggest year‑over‑year gains, whereas Pittsburgh recorded the largest decline and San Francisco saw rents jump 7.1%, the fastest rise among major markets. Nearly 40% of listings offered concessions, up from 35.1% a year earlier. Zillow senior economist Kara Ng warned that the construction boom is slowing and rent growth could firm again in coming months.