Rental Market Heats Up as Peak Leasing Season Kicks Off

If you’re looking for a rental, now is the time to act. According to new data from Zillow Rentals, the first week of June marks the busiest time of year for apartment searches, rental applications, and property inquiries surpassing all other weeks in the past two years.

“Summer is always an active season for renters, but it’s also when we see the highest number of new listings hit the market,” said Emily McDonald, a rental trends expert at Zillow. “Knowing when demand peaks can give renters an edge. Those who plan early can snap up the best deals and potentially score move-in incentives before they disappear.”

Record-Breaking Rental Activity in 2025

So far, 2025 is shaping up to be the strongest rental season in recent years. Zillow reports that activity on its platform has already outpaced 2023 and 2024, with more views, lease signings, and applications than ever before.

The surge in demand reflects a broader trend: more people are renting than ever. A record 46 million households now rent, and renters are nearly four times more likely to move than homeowners, according to the U.S. Census Bureau.

This spike in activity is also being supported by a historic supply increase. Zillow now lists more than two million active rental units nationwide a new high. This includes everything from apartments and condos to single-family rentals.

In part, this is thanks to a construction boom in 2024, which delivered the largest volume of new rental housing since the 1970s. But while inventory is up, the wave of generous move-in offers is beginning to taper off.

Zillow’s latest Rental Market Report found that rent concessions things like free rent for a month or waived deposits were included in less than 35% of listings in April, down from nearly 40% in March. This decline suggests that landlords are starting to pull back on giveaways as the competition for rentals heats up.

Concessions May Have Peaked

Earlier this year, landlords were offering more perks than usual to attract tenants. In February 2025, around 41% of listings included incentives, similar to January’s numbers. But that trend has now stabilized, and the data hints that January may have been the peak of the concession wave.

As leasing season kicks into high gear, landlords appear less eager to offer discounts, especially in fast-moving markets where demand already outpaces supply.

Affordability Still a Challenge for Many Renters

Even as more options hit the market, many renters are still struggling with affordability.

Mortgage rates remain high, pushing many would-be homebuyers back into the rental pool. As of May 29, 2025, Freddie Mac reported the average 30-year fixed mortgage rate at 6.89%, slightly up from the previous week but lower than this time last year, when it stood at 7.03%.

Meanwhile, home prices continue to rise. Zillow’s national home value index now places the average U.S. home at $367,711, reflecting a 1.4% increase over the past year.

And rents? They’re up too by a lot.

Since April 2020, the average rent for a typical U.S. apartment has risen 28.7%, reaching $1,858. For single-family rentals, the jump is even more dramatic: a 42.9% increase, now averaging $2,256.

In comparison, median household income has only grown by 22.5% in that same time, now sitting at around $82,000. This mismatch between income and rent growth means more households are becoming financially stretched.

Rent Burden Still Pressing in Major Cities

The 30% affordability threshold is a critical benchmark spending more than that on rent is generally considered financially burdensome.

Right now, a typical renter earning the median income spends 29.6% of their income on rent, just below that line.

However, in cities like San Jose, New York, Boston, San Francisco, Los Angeles, San Diego, Miami, and Riverside, renters must earn six-figure incomes to stay under the 30% mark. In many of these markets, monthly rents exceed the national average of $2,024 by hundreds of dollars.

Final Thoughts

The rental market is undeniably heating up as we head into summer. Demand is high, inventory is strong, and activity is already surpassing records from previous years. But while options may be abundant, affordability remains a concern, especially in major metropolitan areas.

For renters, this is the moment to act quickly, do the homework, and lock in deals before competition intensifies further. And for landlords, the peak leasing season offers a unique opportunity but incentives may no longer be needed to close the deal. For more information about Financing Visit Nadlan Capital Group.