US Rents Rise 2.7% as Renting Beats Buying on Cost
The typical US rent rose 2.7% year on year to $1,932 in September, the biggest annual gain since April 2025, according to Zillow. Annual rent growth has picked up every month since April, and it is broad-based, covering both apartments and single-family rentals.
Renting versus buying
Zillow's affordability measure shows the gap clearly:
- Buying: a median-income household would spend 34.3% of income on the typical mortgage payment, including estimates for taxes, maintenance and insurance
- Renting: the same household would spend 26.3% on typical rent
That is a gap of 8 percentage points. Zillow's chief economist Mischa Fisher said buyers on the margin are finding the monthly saving from renting too good to pass up, even if they still want to own eventually. He called the strength in rents more surprising than the slowdown in sales.
Landlords still offering deals
About 39.6% of Zillow rental listings offered a concession in September, up from 37.4% a year earlier. Rents are rising, but tenants still have some bargaining room.
Where rents are rising fastest
- San Francisco: +11.8%, to $3,445
- San Jose: +8.3%, to $3,812
- Virginia Beach: +7.1%
- Milwaukee: +5.1%
- New York: +4.2%, to $3,546
Rents were flat in Denver and edged down in San Antonio.
What to watch
If mortgage rates stay near 7.4%, more households may stay in rentals longer, which can keep upward pressure on rents even as home sales weaken.