Renters see $2,300 in savings as rent growth cools to 2020 levels
FILE-Image of a house for rent in Washington, D.C. (Photo by Aaron Schwartz/Xinhua via Getty Images)
Renters are feeling a bit of relief in their wallets with rises in income eclipsing higher rent prices, placing an additional $193 in the household’s pocket monthly, which is also $2,318 in savings annually.
A new Zillow rental market report examining rental costs for March determined that the typical asking rent was $1,910 in March, a 1.8% year over year, representing the slowest annual pace since 2020. Single-family rents spiked 2.5% year over year to $2,225, which was also the slowest annual growth ever recorded by Zillow, while multifamily rents climbed 1.3% to $1,757.
Renters monthly savings by city
Which cities are renters seeing the most savings?
Local perspective:
Rent savings vary nationwide depending on the housing market. Zillow reported that renters in Austin are experiencing the largest annual gains, with about $3,182 more in savings compared to 2025 after factoring in income growth and rent declines. And renters in Tampa are close behind at $3,110 in annual savings, followed by Denver at $3,002.
Moreover, Los Angeles renters are saving about $2,438 more annually, while renters In San Francisco experienced more modest savings at $458 per year.
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According to Zillow, the amount of income a household spends on typical rent has improved to 26.5%, which is a slight decline from 2025 and approaching the pre-pandemic level of 25.8%. However, to comfortably afford typical rent prices, the household income should be $76,400 annually.
Rent affordability in the U.S.
Big picture view:
Zillow noted that the most affordable U.S. cities for rents are Austin (18.1%), Salt Lake City (18.2%), Raleigh (18.4%), Minneapolis (19.5%), and Denver (19.5%).
Meanwhile, the least affordable cities for renters are New York (38.0%), Miami (37.4%), Los Angeles (33.9%), Riverside (31.0%), and Boston (30.1%).
RELATED: Rent prices falling in most U.S. cities, report finds
The report added that the typical asking rent for multifamily homes was $1,757 in March, an 0.6% rise month-over-month. Since the beginning of the pandemic, multifamily rents have increased by 28%.
Furthermore, income needed to afford rent rose by 1.7% year-over-year in March to $76,417. Before the pandemic, the income required to afford rent spiked by 35.4%.
The Source: Information for this story was provided by a Zillow report evaluating rental prices nationwide. This story was reported from Washington, D.C.