Zillow: Rental Affordability Reaches Highest May Level Since 2021

Rental affordability across the United States saw a notable increase in May 2026, according to the latest Zillow data. Nearly 74% of rental listings were considered affordable to a median-income household—the highest level recorded for the month since 2021. The improvement comes as a result of a surge in multifamily housing construction and slower rent growth after pandemic-era spikes.

Multifamily Construction Drives Affordability

A major factor in rising affordability has been the record level of apartment construction. Builders responded to strong demand during the pandemic, taking advantage of low borrowing costs, resulting in a wave of new multifamily units. By 2024, apartment construction had reached a 50-year high.

With more rental units available, competition for individual apartments has eased, slowing rent growth and allowing household incomes to better catch up to housing costs.

National Rent Growth Slows

The typical rent nationwide increased just 2% year-over-year, amounting to an additional $39 per month. This slower growth contrasts with the record rent increases experienced during the early 2020s, demonstrating the market’s gradual stabilization.

The share of rentals priced under $1,000 also rose to 8.8%, the highest for any May since 2022, signaling more entry-level options becoming available.

Differences Between Multifamily and Single-Family Rentals

• Multifamily Rentals: 79.4% of listings were affordable in May, up from 75.5% the previous year. Typical monthly rent was $1,783, reflecting a 1.3% increase from 2025.
• Single-Family Rentals: Almost half of single-family homes (47.3%) were affordable, up from 44.9% in May 2025. Monthly rent averaged $2,291, increasing 2.8% year-over-year.

The growth in single-family rental affordability is notable, as these properties have generally experienced faster rent growth due to high demand from households unable to buy their first home.

Most Affordable and Least Affordable Metro Areas

Some metro areas continue to provide better affordability for renters:

• Top Affordable Cities: Raleigh, NC (94.8%), Austin, TX (91%), Louisville, KY (90.5%), Salt Lake City, UT (90.2%), Portland, OR (89.3%)
• Biggest Year-Over-Year Gains: Tampa, FL (up from 51.6% to 61.4%) and Orlando, FL (up from 61.3% to 69.5%)
• Highest Share of <$1,000 Rentals: Oklahoma City (29.8%), Memphis (26.4%), Cleveland (22.5%)

Meanwhile, Pittsburgh experienced the largest drop in affordability, falling from 80.3% to 77.6%, and San Francisco saw the share of affordable listings decline slightly amid high rent growth (+7.1% annually).

Concessions and Market Incentives

Approximately 40% of rental listings offered concessions in May 2026, essentially flat from April but up from 35.1% the previous year. Concessions include incentives such as free months of rent, reduced security deposits, and waived fees, making rentals more accessible.

Monthly Rent Trends

• Single-Family Homes: $2,291 average, up 0.5% month-over-month, 2.8% year-over-year; one metro, Milwaukee, saw a slight decline of 0.2%
• Multifamily Homes: $1,783 average, up 0.5% month-over-month, 1.3% year-over-year; declines observed in Birmingham (-0.4%) and San Antonio (-0.2%)

Across the 50 largest metro areas, rents increased from year-ago levels in the majority of markets, with the fastest growth seen in San Francisco, Virginia Beach, San Jose, Chicago, and New York.

Bottom Line

The U.S. rental market in May 2026 is showing signs of improved affordability, driven by a surge in multifamily construction and slowing rent growth. Nearly three out of four listings are now accessible to median-income households, giving renters more choices and reducing competition for individual units. While some high-cost metros still face pressure, the overall trend suggests a stabilizing rental market. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.