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    Single-family rents reach record high, 20% above apartments

    Finance news

    It costs about $350 more each month to rent a single-family home 

    • Rents for single-family homes are up 41% over pre-pandemic norms; multifamily rents have risen 26% in that time. 
    • Concessions are being offered on two out of every five rental properties on Zillow, another record. 
    • For-sale inventory continues to recover, but is still 25% below pre-pandemic norms. 

    , /PRNewswire/ — Rented single-family homes are the housing market’s big standout right now, with costs 20% higher than that of a typical multifamily apartment, according to the latest market report1 from Zillow®. That’s the largest difference ever recorded by Zillow.

    While stubbornly high mortgage rates are keeping a lid on buyer demand and home value growth, and a response from builders has kept multifamily rent growth stable for many months, rents for detached single-family homes continue to accelerate. 

    “Right now, more multifamily units are hitting the market than at any time in the past 50 years, but detached homes aren’t seeing the same surge in construction,” said Skylar Olsen, Zillow chief economist. “We’ve also got the large millennial generation wanting to move into a larger space. High and unpredictable mortgage rates and hefty down payments are pushing some to rent that lifestyle instead of buying it. Similarly discouraged, some homeowners may return to the market and sell to capitalize on record prices, rather than continue to wait for lower rates.”

    Looking at annual growth, rents for detached homes are up 4.4% — on par with their trajectory before the pandemic — while apartment rents are growing at a relatively stable 2.4% annually, a bit lower than the mid-3% growth seen in 2018 and 2019. Meanwhile, home value appreciation for owned homes has settled to 2.6% year over year, compared to 5.2% in December 2019.

    Single-family rents are up 41% since before the pandemic, compared to 26% on multifamily rents. Single-family rentals hold a 59% price premium over multifamily units in Salt Lake City, the largest difference among the 50 largest U.S. metros. Detroit has the smallest delta percentage at 9%, and Pittsburgh — where single-family construction has boomed over the past five years — had a low 14% difference. 

    Rents are sticky, but concessions keep rising
    Despite the general surge in apartment construction, rents on the multifamily side are proving to be sticky. Annual rent growth has been relatively stable, in the mid-2% range, over the past year. 

    Property managers are instead increasingly turning to concessions to lure in tenants. These deal sweeteners, such as months of free rent or free parking, are now offered on 41% of all rental listings on Zillow, another record high. Zillow’s Rental Market Report has additional data and details. 

    Millennials — the largest U.S. generation — are renting longer before buying a home. Zillow’s latest Consumer Housing Trends Report found renters’ median age to be 42 in 2024, up from 33 just three years prior.  

    Buy side: Inventory recovery continues
    Inventory continues to trend closer to long-term norms from before the pandemic. The number of homes on the market nationwide in December was just under 1 million — more than in any December since 2019. Inventory is now 25% below 2018–2019 averages for this time of year, far from the 37% shortfall of January 2024 or the record deficit of 51% seen in February 2022. More choices for buyers means less competition over the newly listed homes and softer price growth ahead. 

    With any luck, the recent momentum of sellers returning to the housing market — some likely doubting that mortgage rates will drop anytime soon to improve their own buying situation — will continue to recover in the new year. 

    Now, 10 of the 50 largest major metros have more homes on the market than at this time of year before the pandemic. Those metros are concentrated in Florida, Texas and the South, where builders have been better able to keep up with demand, though Denver is in the mix, too. 

    Those considering buying a home in 2025 should make sure their credit is in good shape now and start taking steps to improve their score, if possible. What to expect in the market for 2025 and how to prepare financially for a home purchase is covered in this free webinar from Zillow.

    Metro Area*

    Single-
    Family Zillow
    Observed
    Rent Index
    (ZORI),
    Smoothed 

    Multifamily
    ZORI,
    Smoothed

    Single-
    Family ZORI
    Price
    Premium
    Over
    Multifamily

    Share of
    Rentals
    Offering
    Concessions

    For-Sale
    Inventory
    Versus
    2018–2019
    Averages

    Zillow
    Market
    Heat
    Index,
    Market
    Favors:

    United States

    $2,174

    $1,812

    20 %

    41 %

    -25 %

    Neutral

    New York, NY

    $3,674

    $3,108

    18 %

    23 %

    -56 %

    Strong seller

    Los Angeles, CA

    $4,181

    $2,690

    55 %

    37 %

    -26 %

    Seller

    Chicago, IL

    $2,317

    $1,907

    21 %

    34 %

    -49 %

    Seller

    Dallas, TX

    $2,323

    $1,532

    52 %

    59 %

    2 %

    Neutral

    Houston, TX

    $2,114

    $1,448

    46 %

    48 %

    1 %

    Neutral

    Washington, DC

    $2,987

    $2,262

    32 %

    58 %

    -39 %

    Seller

    Philadelphia, PA

    $2,118

    $1,769

    20 %

    36 %

    -46 %

    Seller

    Miami, FL

    $3,425

    $2,484

    38 %

    23 %

    -4 %

    Buyer

    Atlanta, GA

    $2,151

    $1,668

    29 %

    56 %

    -3 %

    Buyer

    Boston, MA

    $3,736

    $2,975

    26 %

    31 %

    -46 %

    Strong seller

    Phoenix, AZ

    $2,254

    $1,539

    46 %

    57 %

    -8 %

    Neutral

    San Francisco, CA

    $3,931

    $2,763

    42 %

    46 %

    -3 %

    Strong seller

    Riverside, CA

    $3,001

    $2,301

    30 %

    29 %

    -25 %

    Seller

    Detroit, MI

    $1,488

    $1,367

    9 %

    27 %

    -34 %

    Neutral

    Seattle, WA

    $3,125

    $2,081

    50 %

    56 %

    -23 %

    Seller

    Minneapolis, MN

    $2,303

    $1,535

    50 %

    56 %

    -27 %

    Seller

    San Diego, CA

    $3,976

    $2,725

    46 %

    43 %

    -33 %

    Seller

    Tampa, FL

    $2,356

    $1,839

    28 %

    42 %

    7 %

    Buyer

    Denver, CO

    $2,835

    $1,790

    58 %

    66 %

    4 %

    Neutral

    Baltimore, MD

    $2,209

    $1,742

    27 %

    42 %

    -47 %

    Seller

    St. Louis, MO

    $1,506

    $1,241

    21 %

    29 %

    -44 %

    Seller

    Orlando, FL

    $2,403

    $1,784

    35 %

    49 %

    17 %

    Neutral

    Charlotte, NC

    $2,045

    $1,592

    28 %

    60 %

    18 %

    Neutral

    San Antonio, TX

    $1,827

    $1,277

    43 %

    53 %

    23 %

    Buyer

    Portland, OR

    $2,608

    $1,690

    54 %

    54 %

    -19 %

    Seller

    Sacramento, CA

    $2,683

    $1,984

    35 %

    38 %

    -30 %

    Seller

    Pittsburgh, PA

    $1,577

    $1,381

    14 %

    32 %

    -32 %

    Buyer

    Cincinnati, OH

    $1,968

    $1,354

    45 %

    24 %

    -33 %

    Neutral

    Austin, TX

    $2,269

    $1,512

    50 %

    61 %

    34 %

    Neutral

    Las Vegas, NV

    $2,172

    $1,525

    42 %

    42 %

    -18 %

    Neutral

    Kansas City, MO

    $1,601

    $1,312

    22 %

    39 %

    -36 %

    Neutral

    Columbus, OH

    $1,866

    $1,327

    41 %

    38 %

    -20 %

    Neutral

    Indianapolis, IN

    $1,714

    $1,341

    28 %

    46 %

    -16 %

    Buyer

    Cleveland, OH

    $1,509

    $1,184

    27 %

    26 %

    -53 %

    Seller

    San Jose, CA

    $4,259

    $3,038

    40 %

    58 %

    -35 %

    Strong seller

    Nashville, TN

    $2,258

    $1,671

    35 %

    60 %

    -11 %

    Neutral

    Virginia Beach, VA

    $2,059

    $1,535

    34 %

    33 %

    -43 %

    Seller

    Providence, RI

    $2,964

    $1,927

    54 %

    16 %

    -62 %

    Seller

    Jacksonville, FL

    $1,957

    $1,503

    30 %

    49 %

    14 %

    Buyer

    Milwaukee, WI

    $1,536

    $1,275

    20 %

    37 %

    -27 %

    Neutral

    Oklahoma City, OK

    $1,466

    $1,105

    33 %

    30 %

    -3 %

    Neutral

    Raleigh, NC

    $2,061

    $1,494

    38 %

    65 %

    -13 %

    Neutral

    Memphis, TN

    $1,573

    $1,199

    31 %

    32 %

    -1 %

    Buyer

    Richmond, VA

    $2,037

    $1,558

    31 %

    49 %

    -43 %

    Seller

    Louisville, KY

    $1,588

    $1,266

    25 %

    42 %

    -27 %

    Buyer

    New Orleans, LA

    $1,830

    $1,456

    26 %

    13 %

    61 %

    Buyer

    Salt Lake City, UT

    $2,426

    $1,530

    59 %

    62 %

    -5 %

    Seller

    Hartford, CT

    $2,541

    $1,768

    44 %

    29 %

    -69 %

    Strong seller

    Buffalo, NY

    $1,684

    $1,262

    33 %

    -46 %

    Strong seller

    Birmingham, AL

    $1,464

    $1,225

    20 %

    31 %

    -14 %

    Neutral

    *Table ordered by market size 

    1 The Zillow® market report is a monthly overview of the national and local real estate markets. The report is compiled by Zillow Research. For more information, visit zillow.com/research.

    About Zillow Group:
    Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people. As the most visited real estate website in the United States, Zillow and its affiliates help people find and get the home they want by connecting them with digital solutions, dedicated partners and agents, and easier buying, selling, financing, and renting experiences. 

    Zillow Group’s affiliates, subsidiaries and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans℠, Zillow Rentals®, Trulia®, Out East®, StreetEasy®, HotPads®, ShowingTime+℠, Spruce®, and Follow Up Boss®. 

    All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2025 MFTB Holdco, Inc., a Zillow affiliate.

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    SOURCE Zillow

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