Incomes are finally pulling ahead of rents in much of the country, but renters are still paying a bigger share of their paychecks for housing than they did before the pandemic. That tension between slowing rent growth, rising incomes and still‑elevated costs defines the latest rental affordability picture, according to Zillow’s October 2025 rent report.
Zillow reports that national rent growth continued to cool more than usual for October, with typical asking rents up 2.3% year-over-year while median household incomes are estimated to have risen 4%. In 37 of the 50 largest U.S. metros, incomes increased faster than rents over the past year, helping ease pressure on some renters.
Those gains come after several years of steep rent increases that have reshaped household budgets. Zillow estimates that a new renter household earning the median income would have to spend 27.2% of its revenue on the typical rent as of October, up from 26.3% before the pandemic, a share that had been relatively stable in the pre‑pandemic years.
Affordability has improved most in metros, where rents are now falling year-over-year. According to Zillow, typical asking rents are down 3.1% in Austin, 2.1% in Denver, 0.8% in San Antonio and 0.7% in Phoenix compared with a year earlier, helping narrow the gap between what households earn and what they pay for housing.
Even some markets that are still seeing positive rent growth have become more affordable as incomes outpace rents. Zillow notes that in places like San Jose, where typical asking rents are up but income growth is stronger, renters are seeing a bit more breathing room.
Despite the recent slowdown, national rents remain far above pre‑pandemic levels. Zillow reports that the typical asking rent across the United States is now $1,949, a 35.6% jump since before the pandemic.
That increase has outstripped broader inflation. According to the Bureau of Labor Statistics, it took $1.26 in September 2025 to match the buying power of $1.00 in September 2019, reflecting a 26% rise in overall living costs over that period, well below cumulative rent growth.
Not all renters are seeing conditions improve. Zillow finds that in 12 of the 50 largest metros, rents grew faster than median incomes in the past year.
That group includes high-cost hubs such as New York, San Francisco and Chicago, as well as relatively more affordable markets like St. Louis, Milwaukee and Cleveland, where rent growth has still outstripped gains in local incomes. For renters in these metros, the gap between paychecks and rent checks continues to widen.
Rising vacancies from a wave of new multifamily construction are prompting landlords to lean more on concessions to fill units. Zillow reports that nearly 39% of all rentals listed on its platform offered some kind of concession in October—such as weeks of free rent or waived fees—an all‑time high share for the month and up 110 basis points from a year earlier.
In 14 metros, more than half of rental listings included a concession. Those markets included Dallas (60.5%), Washington, D.C. (56.5%), Atlanta (56%), Phoenix (57.0%), Seattle (54.3%), Denver (67.5%), Orlando (51.7%), Charlotte (62.5%), San Antonio (54.4%), Austin (62.0%), Las Vegas (51.3%), Nashville (63.0%), Raleigh (63.7%) and Salt Lake City (61%).
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.