Rent Growth Slows to 1.9%, Giving Renters More Leverage
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 19 2026
0mins
Should l Buy Z?
Source: PRnewswire
- Slowdown in Rent Growth: In February 2026, national rents increased by only 1.9% year-over-year, marking the slowest growth since December 2020, indicating a recalibration in the rental market that enhances renters' negotiating power.
- Impact of Supply Glut: A surge in apartment construction has led to higher vacancy rates, causing multifamily rent growth to slow to 1.4% annually, down from nearly 16% at the peak in 2022, reflecting a shift in market supply-demand dynamics.
- Improved Affordability: With median household incomes growing slightly faster than rents, renters now spend 26.3% of their income on rent, although an annual income of about $76,000 is still needed to comfortably afford typical rents, indicating ongoing pressures in the rental market.
- Diverse Market Performance: Among the 50 largest markets, 34 saw a deceleration in annual rent increases, with eight markets experiencing year-over-year rent declines, highlighting varying local market conditions that may provide renters with greater leverage in negotiations.
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Analyst Views on Z
Wall Street analysts forecast Z stock price to rise
8 Analyst Rating
3 Buy
5 Hold
0 Sell
Moderate Buy
Current: 40.490
Low
70.00
Averages
87.40
High
100.00
Current: 40.490
Low
70.00
Averages
87.40
High
100.00
About Z
Zillow Group, Inc. helps people find and get the home they want by connecting them with digital solutions, dedicated partners and agents, and buying, selling, financing, and renting experiences. The Company’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. It helps renters, buyers, sellers, and real estate professionals across all their residential real estate needs through its housing super app, which serves as an ecosystem of connected solutions for the tasks and services related to moving. It provides integrated transaction experience for movers through Zillow, its network of partners, its affiliated brands, and through a comprehensive suite of marketing software and technology solutions for the real estate industry, including ShowingTime+, Follow Up Boss and Spruce. It offers multifamily property managers a variety of advertising products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
First-Time Homebuyers Find Opportunities in Sun Belt and Midwest
- Market Analysis: Zillow's latest analysis identifies Jacksonville, Birmingham, and San Antonio as top markets for first-time buyers in 2026, where improved affordability and increased inventory are expected to significantly reduce competition, thus providing better purchasing opportunities.
- Reduced Rent Burden: In Jacksonville, typical rent consumes 23.1% of household income, while Birmingham and San Antonio are at 21.1% and 20.2%, respectively; these lower rent burdens facilitate savings for down payments, enhancing the willingness to buy among first-time buyers.
- Inventory Recovery: The rapid recovery of inventory in southern markets has brought housing supply closer to pre-pandemic levels, although overall inventory remains 20% below pre-pandemic norms, the relative improvement offers first-time buyers more choices.
- Economic Environment Changes: Despite rising mortgage rates impacting affordability, the overall improvement in economic conditions and rising incomes have made the home-buying outlook for first-time buyers better than last year, indicating a gradual market recovery.
See More
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- Rate Decline Trend: According to Zillow data, the 30-year fixed mortgage rate has dropped to 6.22%, down a surprising quarter point since last weekend, indicating market support for homebuyers and potentially stimulating a rebound in home sales.
- Short-Term Rate Changes: The 15-year fixed mortgage rate has also decreased by 18 basis points to 5.72%, increasing the appeal of shorter-term loans, which may encourage more borrowers to consider shorter terms to save on interest payments.
- Diverse Loan Options: Current mortgage products include a 30-year VA loan rate at 5.90% and a 15-year VA loan rate at 5.56%, with these declining rates providing more options for borrowers with varying needs, enhancing market flexibility.
- Refinance Rate Overview: The 30-year refinance rate stands at 6.43%, slightly higher than purchase loan rates, and while refinance rates are typically higher, borrowers can still secure lower rates by improving their credit scores, thereby reducing long-term financial burdens.
See More
Slight Changes in Mortgage Rates Today
- Mortgage Rate Changes: According to Zillow, the 30-year fixed mortgage rate increased by one basis point to 6.30%, while the 15-year rate decreased by six basis points to 5.67%, indicating slight market fluctuations, although rates remain above a three-year low.
- Refinance Rate Overview: The current 30-year fixed refinance rate stands at 6.42%, with the 20-year at 7.00% and the 15-year at 5.87%, reflecting competitive dynamics in the refinance market that may influence borrower decisions.
- Economic Impact Factors: Mortgage rates are influenced by economic conditions, rising when the economy is strong to temper spending and falling during downturns to stimulate borrowing, making this dynamic crucial for homebuyers and investors.
- Loan Choice Analysis: Both 30-year and 15-year fixed mortgages have their pros and cons, with the former offering lower monthly payments but higher long-term interest, while the latter has lower rates but higher monthly payments, requiring borrowers to make informed decisions based on their financial situations.
See More
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- Mortgage Rate Decline: According to Zillow, the average 30-year fixed mortgage rate has decreased to 6.36%, down 11 basis points from last week, indicating market sensitivity to rates which may stimulate homebuying demand.
- Refinance Rate Overview: The 30-year refinance rate stands at 6.43%, slightly higher than purchase rates, reflecting competitive pressure in the refinancing market that may lead borrowers to consider more cost-effective options.
- Loan Type Comparison: The 15-year fixed mortgage rate is at 5.81%, which, while resulting in higher monthly payments, can save borrowers significant interest over time, encouraging a preference for shorter-term loans to reduce total interest costs.
- Market Outlook Predictions: According to MBA forecasts, the 30-year mortgage rate is expected to hover around 6.30% through 2026, reflecting a cautiously optimistic market sentiment regarding future rate trends, which could influence homebuyer decisions.
See More
Median-Income Households Gain Home Buying Power in the U.S.
- Increased Buying Power: A recent Zillow study reveals that median-income households in the U.S. can now afford homes priced at $331,483, reflecting a $30,302 increase from last year's $301,181, indicating a significant boost in purchasing power and hinting at greater market stability.
- Signs of Market Stabilization: With median-income households able to make a 20% down payment on a $331,483 home and mortgage rates declining, the market appears to be stabilizing, potentially providing favorable conditions for future real estate investments.
- City-Specific Affordability Trends: In Los Angeles, the affordable home price for median-income households is projected to reach $421,030 in 2026, up 10.9% from $379,754 in 2025, indicating a continued upward trend in housing prices in the region.
- National Trends in Affordability: Across 30 major cities, many show improved affordability for median-income households, such as San Francisco, where the affordable price increased from $525,449 to $581,564, a rise of 10.7%, suggesting a nationwide enhancement in buying capacity.
See More
Mortgage Rates Hit Highest Level Since September
- Mortgage Rate Surge: Zillow reports that the average 30-year fixed mortgage rate has reached 6.47%, the highest since late September, indicating market expectations for rising future rates, which may lead to increased borrowing costs for homebuyers.
- Refinance Rate Trends: The current 30-year refinance rate stands at 6.60%, slightly higher than purchase loan rates, reflecting pressure in the refinance market that may prompt borrowers to make quicker loan decisions to avoid higher rates.
- Short vs. Long Term Loans: The rates for 30-year and 15-year fixed mortgages are 6.47% and 5.90%, respectively; while the 15-year loan offers a lower rate, it comes with higher monthly payments, requiring borrowers to balance short-term and long-term financial goals when selecting the right loan type.
- Market Expectations and Outlook: According to MBA forecasts, the 30-year mortgage rate is expected to remain around 6.10% through the end of 2026, with Fannie Mae predicting rates near 6% for the year, suggesting a cautiously optimistic outlook on future rate stability in the market.
See More
First-Time Homebuyers Find Opportunities in Sun Belt and Midwest
- Market Analysis: Zillow's latest analysis identifies Jacksonville, Birmingham, and San Antonio as top markets for first-time buyers in 2026, where improved affordability and increased inventory are expected to significantly reduce competition, thus providing better purchasing opportunities.
- Reduced Rent Burden: In Jacksonville, typical rent consumes 23.1% of household income, while Birmingham and San Antonio are at 21.1% and 20.2%, respectively; these lower rent burdens facilitate savings for down payments, enhancing the willingness to buy among first-time buyers.
- Inventory Recovery: The rapid recovery of inventory in southern markets has brought housing supply closer to pre-pandemic levels, although overall inventory remains 20% below pre-pandemic norms, the relative improvement offers first-time buyers more choices.
- Economic Environment Changes: Despite rising mortgage rates impacting affordability, the overall improvement in economic conditions and rising incomes have made the home-buying outlook for first-time buyers better than last year, indicating a gradual market recovery.
See More
Mortgage Rates Decline for Five Consecutive Days
- Rate Decline Trend: According to Zillow data, the 30-year fixed mortgage rate has dropped to 6.22%, down a surprising quarter point since last weekend, indicating market support for homebuyers and potentially stimulating a rebound in home sales.
- Short-Term Rate Changes: The 15-year fixed mortgage rate has also decreased by 18 basis points to 5.72%, increasing the appeal of shorter-term loans, which may encourage more borrowers to consider shorter terms to save on interest payments.
- Diverse Loan Options: Current mortgage products include a 30-year VA loan rate at 5.90% and a 15-year VA loan rate at 5.56%, with these declining rates providing more options for borrowers with varying needs, enhancing market flexibility.
- Refinance Rate Overview: The 30-year refinance rate stands at 6.43%, slightly higher than purchase loan rates, and while refinance rates are typically higher, borrowers can still secure lower rates by improving their credit scores, thereby reducing long-term financial burdens.
See More
Slight Changes in Mortgage Rates Today
- Mortgage Rate Changes: According to Zillow, the 30-year fixed mortgage rate increased by one basis point to 6.30%, while the 15-year rate decreased by six basis points to 5.67%, indicating slight market fluctuations, although rates remain above a three-year low.
- Refinance Rate Overview: The current 30-year fixed refinance rate stands at 6.42%, with the 20-year at 7.00% and the 15-year at 5.87%, reflecting competitive dynamics in the refinance market that may influence borrower decisions.
- Economic Impact Factors: Mortgage rates are influenced by economic conditions, rising when the economy is strong to temper spending and falling during downturns to stimulate borrowing, making this dynamic crucial for homebuyers and investors.
- Loan Choice Analysis: Both 30-year and 15-year fixed mortgages have their pros and cons, with the former offering lower monthly payments but higher long-term interest, while the latter has lower rates but higher monthly payments, requiring borrowers to make informed decisions based on their financial situations.
See More
Mortgage Rates Ease Lower Amid Market Trends
- Mortgage Rate Decline: According to Zillow, the average 30-year fixed mortgage rate has decreased to 6.36%, down 11 basis points from last week, indicating market sensitivity to rates which may stimulate homebuying demand.
- Refinance Rate Overview: The 30-year refinance rate stands at 6.43%, slightly higher than purchase rates, reflecting competitive pressure in the refinancing market that may lead borrowers to consider more cost-effective options.
- Loan Type Comparison: The 15-year fixed mortgage rate is at 5.81%, which, while resulting in higher monthly payments, can save borrowers significant interest over time, encouraging a preference for shorter-term loans to reduce total interest costs.
- Market Outlook Predictions: According to MBA forecasts, the 30-year mortgage rate is expected to hover around 6.30% through 2026, reflecting a cautiously optimistic market sentiment regarding future rate trends, which could influence homebuyer decisions.
See More
Median-Income Households Gain Home Buying Power in the U.S.
- Increased Buying Power: A recent Zillow study reveals that median-income households in the U.S. can now afford homes priced at $331,483, reflecting a $30,302 increase from last year's $301,181, indicating a significant boost in purchasing power and hinting at greater market stability.
- Signs of Market Stabilization: With median-income households able to make a 20% down payment on a $331,483 home and mortgage rates declining, the market appears to be stabilizing, potentially providing favorable conditions for future real estate investments.
- City-Specific Affordability Trends: In Los Angeles, the affordable home price for median-income households is projected to reach $421,030 in 2026, up 10.9% from $379,754 in 2025, indicating a continued upward trend in housing prices in the region.
- National Trends in Affordability: Across 30 major cities, many show improved affordability for median-income households, such as San Francisco, where the affordable price increased from $525,449 to $581,564, a rise of 10.7%, suggesting a nationwide enhancement in buying capacity.
See More
Mortgage Rates Hit Highest Level Since September
- Mortgage Rate Surge: Zillow reports that the average 30-year fixed mortgage rate has reached 6.47%, the highest since late September, indicating market expectations for rising future rates, which may lead to increased borrowing costs for homebuyers.
- Refinance Rate Trends: The current 30-year refinance rate stands at 6.60%, slightly higher than purchase loan rates, reflecting pressure in the refinance market that may prompt borrowers to make quicker loan decisions to avoid higher rates.
- Short vs. Long Term Loans: The rates for 30-year and 15-year fixed mortgages are 6.47% and 5.90%, respectively; while the 15-year loan offers a lower rate, it comes with higher monthly payments, requiring borrowers to balance short-term and long-term financial goals when selecting the right loan type.
- Market Expectations and Outlook: According to MBA forecasts, the 30-year mortgage rate is expected to remain around 6.10% through the end of 2026, with Fannie Mae predicting rates near 6% for the year, suggesting a cautiously optimistic outlook on future rate stability in the market.
See More
