SEATTLE, WA — U.S. rent growth slowed to 1.9% year over year in February as rising housing supply increased competition among landlords, according to Zillow’s latest Rental Market Report.
The typical asking rent reached $1,895, based on the Zillow Observed Rent Index, marking the slowest annual growth rate since December 2020.
Zillow said the slowdown is driven in part by an increase in apartment construction, which has raised vacancy rates and reduced multifamily rent growth to 1.4% annually, down from nearly 16% in 2022.
Additional supply has also come from homeowners renting out properties after being unable to sell, adding more single-family homes to the rental market.
Single-family rents rose 2.6% year over year in February, the slowest pace recorded by Zillow since it began tracking the data in 2015.
“Renters are gaining leverage, and that advantage is expected to continue as new supply comes online,” said Orphe Divounguy, senior economist at Zillow.
Nearly 40% of rental listings on Zillow included concessions in February, such as free rent or waived fees, reflecting increased competition among landlords.
Affordability has improved slightly as incomes have grown faster than rents, with renter households now spending 26.3% of income on rent, down from a year earlier.
However, a household still needs to earn about $76,000 annually to afford the typical rent, roughly 35% higher than before the COVID-19 pandemic, according to Zillow.
Rental trends varied by market, with rents declining year over year in eight of the 50 largest U.S. metro areas, including Austin, San Antonio, Tampa and Denver.
Other markets saw stronger growth, led by San Francisco at 6.3%, followed by Virginia Beach at 5.7% and Chicago at 5.5%.
Zillow reported that vacancy rates remained highest in markets such as Austin, San Antonio, Jacksonville and Tampa, while Hartford, Boston, Denver, San Jose and Providence recorded the lowest vacancy levels.
The company projects modest rent growth through 2026, with single-family rents expected to rise 1.8% and multifamily rents 0.9% by the end of the year.
The full report is available at https://www.zillow.com/research/february-2026-rent-report-36167/.
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