This marks the largest gap ever recorded by the platform, with single-family rents now averaging $350 more per month than their multifamily counterparts.
Since pre-pandemic times, single-family rents have surged by 41%, compared to a 26% rise for multifamily units.
Zillow reports that annual growth for detached home rents stands at 4.4%, consistent with pre-pandemic trends, while apartment rents have grown at a slower pace of 2.4%.
“Right now, more multifamily units are hitting the market than at any time in the past 50 years, but detached homes aren’t seeing the same surge in construction,” said Skylar Olsen, Zillow’s chief economist.
“We’ve also got the large millennial generation wanting to move into a larger space. High and unpredictable mortgage rates and hefty down payments are pushing some to rent that lifestyle instead of buying it.”
Salt Lake City tops the charts with single-family rents holding a 59% premium over multifamily units, while Detroit has the smallest gap at just 9%. Cities like Pittsburgh, which have seen a boom in single-family construction, report a modest 14% difference.
Concessions rise despite stable multi-family rents
While multi-family rent growth remains stable at mid-2% annually, property managers are increasingly offering concessions to attract tenants. These incentives, such as free rent or parking, are now included in 41% of rental listings on Zillow, which is a record high.
Zillow found that Millennials, the largest US generation, are renting for longer periods, with the median renter age rising to 42 in 2024 from 33 in 2021. High homeownership costs are delaying purchases for many would-be buyers.
