Single-Family Rents Grow Further Out of Reach

In April, single-family rents grew by 0.5% month-over-month to an average of $2,256, which is 4% higher than a year ago
May 12, 2025
3 min read
134200115 © Andrii Yalanskyi | Dreamstime.com
Model wooden homes sit next to large bag of money, indicating the surge in housing costs
Renters must make an annual salary of $80,000, on average, to comfortably afford the typical rental in the U.S.

The rising cost of living is affecting not just homebuyers but also those who currently rent. As rent increases outpace wage growth across the U.S., renters now need to earn more than $80,000 per year to comfortably afford the average rent, according to recent data from housing market platform Zillow. Five years ago, the average income needed was just $60,000. And in eight major U.S. metros, renters must have a six-figure income to afford rent. 

As of April 2025, the typical asking rent for both single-family (SFR) and multifamily rentals rose, with rent for SFR homes hitting $2,256—a 0.5% increase from the previous month—and $1,858 in April for multifamily home rentals, a 0.6% month-over-month increase. 

Since the beginning of the pandemic, rents for single-family homes have jumped by 42.9% and are 4% higher than they were a year ago. Over the same period, multifamily rents have increased by 28.7%, and are up 2.9% from last year.

Which U.S. metros saw single-family rents increase most dramatically?

Year-over-year, data from Zillow's Rental Market Report for April 2025 show that in 49 of the 50 largest metros, single-family rents are up from a year ago, with the biggest increases occurring in:

  • Cleveland +7.5%
  • Chicago +6.5%
  • Indianapolis +6.5%

Did rents drop in any metros?

However, four major metros did see single-family rents drop, on a monthly basis, most significantly in Providence, R.I. (-0.4%), Los Angeles (-0.4%), and Riverside, Calif. (-0.3%).

What effect do rising rents have on Americans aspiring to own a home?

Unrelentingly high housing costs and rental rates that outpace wage growth mean consumers have little room for other expenses and are find it difficult to save money for a down payment on a future home. Zillow reports that:

A renter making the median income and leasing a typical U.S. rental is just on the right side of the 30% affordability line — the rent burden threshold — spending 29.6% of their income on rent. To stay below that 30% line, renters in San Jose, New York, Boston, San Diego, San Francisco, Los Angeles, Miami and Riverside, California, generally need to earn six figures. The typical rent in these markets is many hundreds of dollars above the national asking rent of $2,024. Read more about ZIllow's report and rent affordability

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