Rent Growth Eases, Creating Favorable Conditions for Renters
According to Zillow’s latest rental market report, a shift is occurring in the rental landscape, as subdued rent growth and unprecedented concessions from landlords are making it a more favorable time for renters. Those in the rental market may find themselves in a transformational period, much like the seasons reflected in nature, where change often brings renewal and hope.
In September, national rent growth for multifamily units eased to just 1.7 percent year-over-year, marking the second-lowest annual growth since 2021. With the increasing competition among landlords, a record 37.3 percent of rentals on Zillow now feature concessions such as free months of rent or complimentary parking. This represents a notable rise from just 14.4 percent in 2019, illustrating a significant uplift in landlord incentives.
This improved rental environment follows an unprecedented surge in housing demand during the pandemic. Builders completed more multifamily units in 2024 than any other year in half a century, particularly in the South, where fewer zoning restrictions facilitated faster construction. "Markets that built more, and faster, are seeing that investment pay off," said Orphe Divounguy, senior economist at Zillow. “It’s a reminder that housing costs can be tamed when policy allows supply to keep up with demand.”
Indeed, the parable of the Good Samaritan (Luke 10:25-37) encourages us to care for our neighbors—creating an environment where everyone can flourish is an endeavor that resonates with this principle.
Rent affordability has improved over the past year in 38 of the 50 largest U.S. metropolitan areas. Cities like Denver, Austin, and Miami have witnessed particularly significant benefits. Notably, apartment rents are declining most sharply in Austin (-4.7 percent), Denver (-3.4 percent), and San Antonio (-2.3 percent). However, areas with stricter building regulations continue to experience higher rent growth, as seen in Chicago, which leads the nation at 6 percent growth.
Even single-family rentals, previously a stronghold, are experiencing slowing growth. September recorded the smallest annual increase since 2016, at just 3.2 percent. As we look towards the future, the trend of rental concessions is set to continue—typically peaking during the winter months. With a weakening labor market also impacting residential mobility, the broader economic landscape offers a unique opportunity for renters.
Reflecting on Matthew 7:7, “Ask, and it will be given to you; seek, and you will find; knock, and it will be opened to you,” we are reminded to seek out the opportunities available in our current circumstances.
In a rapidly changing world, this period can serve as an encouraging reminder that even in times of uncertainty, new avenues for growth and stability may arise. It invites us to cultivate patience and discernment as we navigate our paths—both in housing and beyond. As you consider your own journey, think of how these principles can apply, fostering hope and community in the spirit of compassion and understanding.
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