A surge in apartment construction is improving rental affordability across much of the United States, with nearly three-quarters of rental listings now affordable to median-income households, according to a new Zillow analysis.
The share of affordable rental listings reached 74% in May, the highest level recorded for that month since Zillow began tracking the metric in 2021. The increase comes as rent growth remains subdued following a multifamily construction boom that peaked in 2024.
The findings suggest that years of elevated apartment development are beginning to ease pressure on renters by increasing housing options and reducing competition for available units.
The typical U.S. rent rose 2% from a year earlier, or about $39 per month, according to Zillow’s May Rental Report.
The share of rental listings priced below $1,000 per month also increased to 8.8%, the highest level for any May since 2022, indicating growing availability of lower-cost units.
“More supply on the market means more choices, and more choices mean landlords have to compete on price and incentives,” Zillow Senior Economist Kara Ng stated. “The combination of cooling rents and rising incomes has quietly moved the affordability needle in a meaningful way.”
Affordability gains were most pronounced in the apartment sector.
Nearly 79.4% of multifamily rental listings were affordable to median-income households in May, up from 75.5% a year earlier. Single-family rental affordability also improved, with 47.3% of listings considered affordable, compared with 44.9% in May 2025.
Among major metropolitan areas, Raleigh ranked as the most affordable rental market, with 94.8% of listings affordable to median-income households. Austin, Louisville, Salt Lake City, and Portland rounded out the top five.
Tampa and Orlando posted the largest year-over-year affordability gains, while Oklahoma City had the highest share of listings priced below $1,000 per month at 29.8%.
Not all markets improved.
The share of affordable rental listings declined in seven major metro areas. Pittsburgh recorded the largest drop, while San Francisco saw affordability weaken as rents increased 7.1% from a year earlier, the fastest annual gain among major markets.
The report also found that concessions remain common. Nearly 40% of rental listings on Zillow offered incentives in May, up from 35.1% a year earlier.
Ng cautioned that the recent gains may not continue indefinitely as apartment construction slows.
“The open question is how long it lasts,” she stated. “The construction boom that drove affordability gains has slowed, and rent growth could firm up again in the months ahead.”
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