For the first time in years, American renters are seeing their incomes rise faster than the cost of renting, according to new data from Zillow. The shift marks a small but notable turn in the nation's ongoing housing affordability crisis, though experts caution that the relief is far from a full recovery.
Zillow's March rental report shows the typical asking rent stood at $1,910, up just 1.8% from a year earlier—the slowest annual increase since 2020. Meanwhile, income growth has accelerated, leaving the typical household with an extra $193 per month, or roughly $2,300 annually, after accounting for rent costs.
“This moment of relief doesn’t erase the affordability challenges that built up over time, but it does give renters more flexibility than they’ve had in years,” said Kara Ng, a senior economist at Zillow.
Construction Boom in Texas and Florida Eases Rents
The softening rental market is most pronounced in Sun Belt states that have seen a surge in housing construction. Austin, Texas, emerged as the most affordable major metro for renters, with rents down 2.3% year-over-year. Renters there now have about $3,180 more per year after income growth. Tampa, Florida, followed closely, with an annual gain of $3,110.
Texas and Florida have led the nation in new housing construction in recent years, adding supply that has helped cool rent growth. That trend is also pushing landlords to offer concessions—nearly 40% of Zillow listings in March featured discounted rent or waived fees, tying the record for the month. In Denver, 69% of listings offered concessions; in Salt Lake City, 66%; and in Austin, 65%.
Even with the national slowdown, rents are still climbing in many major cities. San Francisco saw the steepest year-over-year increase at 6.4%, followed by Virginia Beach, Virginia (6.0%), and Chicago (5.6%). Overall, rents were higher than a year ago in 37 of the 50 largest metropolitan areas.
Since the pandemic began, rents have surged 36% nationally, with single-family rents rising even more—up 45%. While affordability is improving, it remains worse than before the pandemic. The share of income the median household spends on typical rent eased to 26.5% in March, still above the pre-pandemic level of 25.8%.
Zillow's data provides a snapshot of a market that is slowly rebalancing, but the long-term picture remains challenging. For renters, the newfound breathing room is welcome, but it doesn't undo years of rapid price increases. As media credibility remains a hot topic, this report offers a rare positive economic signal.
Meanwhile, broader economic headwinds persist. The U.S. economy stalled in late 2025, with GDP growth slashed to 0.5% amid a government shutdown and the Iran conflict. And North American job market confidence has plummeted as employment growth slows, adding pressure on renters who rely on steady paychecks.
The list of metros where asking rents have declined over the past year includes Austin (-2.3%), Tampa (-1.6%), San Antonio (-1.6%), Denver (-1.2%), Houston (-0.9%), Phoenix (-0.8%), Salt Lake City (-0.6%), Las Vegas (-0.4%), Nashville (-0.2%), Dallas (-0.1%), and Washington, D.C. (-0.1%).
