National rents cool, Midwest steady

Rents across the U.S. are still rising, but the national cooldown has reached its slowest pace since 2020. (cbsnews.com) Zillow said the typical U.S. rent in March was $1,910, up 1.8% from a year earlier, while single-family rents rose 2.5% and multifamily rents rose 1.3%. Zillow also said that 1.8% annual gain was the slowest since December 2020. (zillow.com) The national cooling is showing up most clearly in high-building Sun Belt markets. Zillow said March rents were down 2.3% from a year earlier in Austin and down 1.6% in both Tampa and San Antonio. (cbsnews.com) Midwestern apartment markets are moving differently. Arbor Realty Trust and Chandan Economics said seven of the top 20 multifamily investment markets in spring 2026 were in the Midwest, with Indianapolis first overall and both Milwaukee and Chicago in the top 10. (arbor.com) Arbor said those Midwest rankings were supported by “stability, affordability, and steady renter demand,” not by the kind of breakneck rent surge that defined the pandemic years. The report said Midwest markets continued to benefit from strong rental affordability, stable labor markets and relatively attractive yields. (arbor.com) Zillow is tying the national slowdown to supply. Its March rental report said rent growth is easing as new apartments come online, vacancies stay higher and landlords have less power to push through big increases. (zillow.com) That helps explain the split between national and Midwest data. In many metros, more new units are keeping rent growth in check, while Chicago-area and other Midwest markets are holding firmer because supply has been tighter and renter demand has stayed steady. (zillow.com) (arbor.com) The market is cooler than it was in 2021 and 2022, but it is not cheap. CBS reported that households still spend a median 26.5% of income on rent, and Zillow said a household now needs about $76,400 a year to comfortably afford the typical U.S. rent. (cbsnews.com) The pandemic run-up still hangs over the market even as monthly increases slow. CBS, citing Zillow, reported that single-family rents have climbed nearly 45% since early 2020 and multifamily rents have risen 28% over the same period. (cbsnews.com) So the headline in spring 2026 is a two-speed rental market: national rent growth is cooling, while parts of the Midwest are still posting the steadier conditions landlords and apartment investors want. (zillow.com) (arbor.com)