Builders have finally done it. They've caught up to renters faster than your cousin catches up to pyramid schemes. For the first time in four years, affordability is (gasp) improving. Rents are cooling, freebies are flowing, and landlords are suddenly acting like that ex who swore they’d never text you again.

Story: After years of renters clutching calculators and crying into their lease renewals, rental affordability has hit its best since 2021. A typical rental now eats up 28.4% of the median household income, down slightly from last year and dipping below that dreaded “one-third of your paycheck” rule. Builders deserve the credit (or blame): 2024 saw more multifamily completions than any year since 1974, and all that new inventory has finally taken the heat off. Feeling the competition, landlords are piling on concessions like Oprah at a giveaway show. Nearly 37% of rentals on Zillow now come with some kind of incentive.

So What? For investors and property managers, this is the first real shift in years where power tilts (even slightly) back toward tenants. The construction surge (especially across the South and Sunbelt) has created pockets of affordability that could slow rent inflation and, in some cases, pressure owners to trim pricing or sweeten deals. Brace for more “what’s your best offer?” emails. If you’re still buying, it’s time to hunt markets where supply has over-delivered, think Austin, Denver, or Phoenix, before prices adjust.

What’s Next? Expect concessions to keep climbing into winter as the leasing season chills. Rent growth could flatten further, and by early 2026, we might see landlords trading those freebies for real price cuts. But don’t expect a full-on renter’s paradise; high mortgage rates and construction slowdowns could still tighten things back up later next year.

Source: Zillow

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