Rental demand is up 20% as high lending costs stifle the for-sale market
Zillow's Rental Market Report shows rental demand up 19.2% year over year nationwide, driven by elevated mortgage costs pushing would-be buyers into rentals. Typical rent rose 2.7% to $1,932, while the typical new buyer's monthly payment climbed faster, up 5% to $3,037. Demand strength is concentrated in single-family rentals (up 21.6%) and in Bay Area and Sun Belt metros like San Jose (ZORDI up 82.5%) and San Francisco (66.9%).
Key figures
- Rent yoy
- 2.7%
- Zordi yoy
- 19.2%
- Typical rent
- 1932
- Buyer payment yoy
- 5.0%
- Median rent income share
- 26.3%
- Typical new buyer payment
- 3037
- New homeowner income share
- 41.3%
- Multifamily rental demand yoy
- 10.1%
- Single family rental demand yoy
- 21.6%
AI analysis
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AI-generated analysis of a public disclosure. Not investment advice; verify against the original document.