A typical rental required 28.4% of the median household income, down from 28.8% a year earlier and below the 30% threshold where housing becomes "a financial burden," the real estate marketplace said in a report.

Rent growth in multifamily units on Zillow eased to 1.7% last month on an annual basis, the second-lowest year-over-year growth seen since 2021.

Builders finished more multifamily units last year than any year since 1974 in response to a surge in housing demand during the coronavirus pandemic, according to Zillow.

"Markets that built more -- and faster -- are seeing that investment pay off, with more renters able to comfortably afford an apartment," Senior Economist Orphe Divounguy said. "It's a reminder that housing costs can be tamed when policy allows supply to keep up with demand."

Rent affordability improved in 38 of the 50 largest US metros, with renters in Denver, Austin, Miami, San Antonio, and Phoenix benefitting the most, according to the report.

Zillow also attributed the slower rent growth to a softening labor market. "New jobs are highly important for residential mobility," the firm said.

Single-family rents rose 3.2% year over year in September, the smallest annual growth in Zillow records, according to the report.

Landlords offered concessions on 37.3% of rentals, which Zillow said was an all-time high for September. The firm expects the concessions to continue to increase.

Price: 72.08, Change: -1.93, Percent Change: -2.61

http://www.mtnewswires.com
Copyright © 2025 MT Newswires. All rights reserved. MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.