While America’s rental market remained relatively favorable to renters, apartment availability may tighten in the coming months as the wave of multi-unit-home construction is receding, according to a July 23 report from Zillow.
Nationwide, the median rent inched up 2.2 percent to $1,965 year over year in June, the report said.
Rent growth strengthened over the past three months, with April, May, and June posting stronger month-over-month gains than the same period in 2025.
At the same time, 39.7 percent of listings on Zillow offered a concession for apartment seekers, up from 35.2 percent a year ago.
The report indicates new construction, particularly in southern and western regions, has added a wealth of multifamily inventory over the past few years, giving renters more choices on where to live.
“Housing supply remains the most direct long-term lever for keeping rents in check, and markets that invested in new housing are rewarding renters with more choices, better concessions, and more competitive pricing,” the report states.
However, the report notes that the high cost of buying a home is keeping many in the rental market longer.
As a result, single-family rents grew by three percent year-over-year to $2,320 in June—almost double the 1.5 percent increase for multifamily units, at $1,789.
Meanwhile, the report indicates that building completions slipped during the second quarter, while the net absorption rate continued to advance.
“With demand holding steady and the flow of new apartments slowing, conditions are expected to tighten gradually across the country,” the report notes.
A June 2026 report from the National Association of Home Builders (NAHB) confirmed that overall housing starts dropped by 15.4 percent in May, and the multifamily sector alone plummeted by 40.2 percent.
This sector, which includes apartment buildings and condos, recorded 295,000 units—down by 14.2 percent from May 2025.
NAHB also noted that single-family home building slipped in May due to higher interest rates, rising construction costs, and labor shortages.
“The decline in housing starts aligns with NAHB’s latest builder survey, which showed builder sentiment weakening further in June,” NAHB chairman Bill Owens said in the report.
“Builders are offering incentives and cutting prices, but difficult market conditions are still limiting sustained momentum for new construction.”
Zillow’s analysis found that regions that fell short on new housing development are already experiencing declining rental affordability.
In already tight markets such as San Francisco, rents continued to rise by 8.2 percent year-over-year with a typical monthly rent of $3,301, requiring a household income of $132,059.
The City by the Bay now leads the nation in rent growth.
Looking ahead, rent growth is expected to remain moderate, with Zillow predicting that single-family rents will rise 3.1 percent and multifamily rents by 2 percent for the remainder of the year.
For renters, it said the incentives currently available—such as a move-in discount, free month’s rent, waived fees, free parking or other perks—are unlikely to disappear overnight.
But as new supply is absorbed, conditions could begin to tighten.
