U.S. rental demand increased 19.2% year over year in September 2026 as rising homeownership costs encouraged more prospective buyers to remain in the rental market, according to Zillow's latest Rent Report. Demand for single-family rentals grew particularly strongly, rising 21.6%, compared with a 10.1% increase for multifamily rentals.
The typical U.S. rent reached $1,932 per month, up 2.7% from a year earlier. Single-family rents averaged $2,266, increasing 3.1% annually, while multifamily rents averaged $1,762, up 2.2%. By comparison, the typical monthly payment for a new homebuyer rose 5% to $3,037, making renting a more affordable option for many households.
Rental demand surged in several major markets, led by San Jose, California, where demand increased 82.5%, followed by San Francisco at 66.9%, Austin at 49.3%, Miami at 48.9%, and Phoenix at 43%. However, rent growth remained uneven, with new apartment construction helping moderate increases in some Sun Belt markets.
Affordability continued to favor renters. The median household spent 26.3% of its income on a new rental, compared with 41.3% for a new homeowner. Still, concessions remained common, with 39.6% of rental listings offering incentives in September, up 2.2 percentage points from a year earlier.
For single-family rental and multifamily operators, the report highlights opportunities created by shifting housing demand. While higher homeownership costs are bringing more renters into the market, affordability concerns and widespread concessions reinforce the importance of competitive pricing and market-specific leasing strategies.
Source: Zillow Research
