Rents Reach $1,962, Rising at the Fastest Pace in Over a Year (July Rent Report)

The typical U.S. asking rent reached $1,962 in July, up 2.3% year over year and the fastest annual increase in more than a year. Rental demand remains strong as the supply of new apartments begins to narrow, although 39.8% of Zillow rental listings still offered concessions. Renting also remains more accessible than buying: households need about $78,488 in annual income to afford the typical rental compared with nearly $99,800 to afford a typical mortgage payment.

With high homeownership costs keeping would-be buyers in the rental market, sellers have opportunities to approach apartment communities, property management companies, real estate agents, moving companies, renters insurance providers, furniture stores, home décor retailers and storage facilities. Apartment communities in competitive markets may have an especially strong reason to advertise as they promote concessions and other incentives designed to attract renters.