Rental market demand rises as elevated home buying costs persist

Elevated borrowing costs are prompting housing market shoppers to opt for rentals as home purchasing payments outpace rental costs. Zillow Research reported that its rental demand index rose 19.2 percent year over year in September 2026. Data from Zillow Research shows that typical rent reached $1,932 per month, marking a 2.7 percent increase from a year earlier, while typical new buyer monthly payments increased 5 percent to $3,037. [1]

National tracking reveals differing rental metrics across property types. Realtor.com Research reported that median asking rent for zero to two-bedroom properties across the 50 largest metropolitan areas fell 0.4 percent year over year to $1,694, representing a 38th consecutive annual decline. [2]

Regional activity showed strength in specific markets during September. The Commercial Observer reported that apartment leasing activity in Brooklyn rose 10 percent year over year to 1,407 signed leases, marking its strongest September performance since 2020 according to data from the Corcoran Group. [5]

Broader economic factors continue to influence housing market dynamics and policy decisions. Realtor.com Research reported that the September consumer price index rose to 3.7 percent, with core inflation moving to 2.6 percent. Additionally, Realtor.com reported that independent reporting found workforce reductions at the Department of Housing and Urban Development created program delays. [6][7]