US Single-Family Rents Surge 51% Since 2020, Gap with Multifamily Hits Record 26.7%

The gap between asking rents for single-family homes and multifamily units in the US has widened to a record 26.7% in March, according to the Zillow Observed Rent Index (ZORI). Since January 2020, mid-tier single-family rents have surged 51%, while multifamily rents rose 32%. Year-over-year, multifamily rents increased just 1.0% in March and were flat month-to-month for the eighth consecutive month, while single-family rents rose 2.4% and continued ticking higher. The divergence is most extreme in Denver (71% gap), Los Angeles (66%), Dallas-Fort Worth (54%), and Phoenix (51%). In contrast, the gap is narrow in New York City (13%), Chicago (17%), and Boston (20%). There are about 50 million rental units in the US, with 15 million single-family rentals (SFRs), 82% owned by mom-and-pop landlords. Invitation Homes, a major single-family landlord, reported renewal rents up 3.7% year-over-year but new-lease rents down 3.0%, indicating softening demand for new leases. Multifamily rents face downward pressure from new supply, while single-family rents ease only gradually. The data covers 14 major metropolitan areas and is seasonally adjusted.