Zillow Reveals Where Prices Are Falling & Where You Can Still Rent for Under $1,000
After years of sky-high rent increases, renters across America are finally catching a break. According to Zillow’s new rental market report, affordability is the best it’s been in four years, with rent growth slowing and landlords offering record numbers of incentives.
The typical rent in the U.S. is now $1,979, consuming 28.4% of the median household income. That’s down slightly from last year, and signals that renters may be regaining some breathing room.
“Markets that built more, and faster, are seeing that investment pay off,” said Orphe Divounguy, Zillow Senior Economist. “More renters can comfortably afford an apartment now, proof that housing costs can be tamed when supply keeps up with demand.”
Record Apartment Construction Is Cooling Rents
The construction boom that began during the pandemic is paying dividends. Builders completed more multifamily apartments in 2024 than in any year in the past 50 years, helping to balance supply and demand.
That surge, especially across the South and Midwest, has created competition, and renters are the winners.
Zillow found that 37.3% of all rental listings now offer concessions such as a free month of rent or free parking, the highest share ever recorded.
U.S. Cities Where Rent Prices Are Dropping Fastest
Zillow’s Observed Rent Index (ZORI) shows the slowest rent growth since 2021, with multifamily rents up just 1.7% year over year. Even single-family rents, which surged after the pandemic, rose only 3.2%, the smallest gain on record.
These cities saw the most significant rent declines in 2025:
- Austin, TX: -4.7%
- Denver, CO: -3.4%
- San Antonio, TX: -2.3%
- Phoenix, AZ: -2.2%
- Orlando, FL: -0.8%
Meanwhile, rents are still climbing in markets with tighter supply and strong job growth:
- Chicago, IL: +6.0%
- San Francisco, CA: +5.6%
- New York, NY: +5.3%
- Providence, RI: +4.8%
- Cleveland, OH: +4.2%
| Metro | Typical Rent (ZORI) | YoY Change | % of Median Income |
|---|
| United States | $1,979 | +2.3% | 28.4% |
| New York, NY | $3,512 | +5.2% | 40.6% |
| Los Angeles, CA | $2,954 | +2.4% | 35.5% |
| Chicago, IL | $2,113 | +6.0% | 26.8% |
| Houston, TX | $1,675 | +1.7% | 23.4% |
| Miami, FL | $2,679 | +0.8% | 38.6% |
| Austin, TX | $1,616 | -3.3% | 18.2% |
| Denver, CO | $1,949 | -2.1% | 20.9% |
(Source: Zillow Observed Rent Index, September 2025)
Best U.S. Cities for Affordable Rent in 2025
Even as national rents hover around $2,000, there are still metro areas where apartments under $1,000 are surprisingly common. Zillow’s analysis of the 100 largest U.S. cities found 13 markets where at least one-third of apartments list below $1,000 per month.
Top 5 Most Affordable U.S. Rental Markets
- Wichita, KS – 54% of listings under $1,000
- McAllen, TX – 50%
- Little Rock, AR – 49%
- Toledo, OH – 46%
- Oklahoma City, OK – 42%
In contrast, renters in Boston, Miami, and Washington, D.C. will struggle to find any listings below that price; fewer than 2% of apartments in those cities fit the bill.
“Moving to a more affordable area can really boost long-term financial health,” said Kara Ng, Zillow Senior Economist. “And in pricier cities, renting a room has become one of the few ways to keep housing costs manageable.”
See also: 10 Affordable U.S. Cities to Live Alone in 2026
“House Hacking” and Room Rentals Are Trending
As affordability challenges linger, more Americans are getting creative with how they rent — or how they earn from their homes.
Zillow’s data shows the median rent for a room is $1,000 or less in 86 of the 100 largest U.S. metros, including traditionally expensive ones like Seattle and Los Angeles.
California leads the room-rental movement, with 8 of the top 14 metros for shared housing located in the state.
Zillow’s surveys reveal this trend extends to homeowners, too:
- 32% of recent buyers said the ability to rent out their home was very or extremely important.
- 28% said “house hacking” (renting part of their home while living in it) was a major factor in their decision.
Building Credit While Paying Rent
For renters hoping to transition into homeownership, saving for a down payment is just one hurdle. Building credit is another.
Zillow now allows renters who pay through its app to report on-time rent payments to credit bureaus for free, helping them strengthen credit histories and eventually qualify for mortgages. More than 141,000 renters have already opted in.
Starting this November, a partnership with Esusu will let even more renters report payments for a small annual fee, even if they don’t use the Zillow app to pay.
The Bottom Line: Relief (and Opportunity)
For the first time in years, renters have a reason to feel hopeful. With more apartments on the market, record-high concessions, and pockets of true affordability across the South and Midwest, 2025 is shaping up to be a better year for renters.
Whether you’re searching for an affordable apartment under $1,000, exploring room rentals in California, or planning your first home purchase, Zillow’s data shows that the market is finally starting to turn in renters’ favor.