Rental Affordability Has Improved for Many U.S. Renters
A new index shows that 11 cities have moved into affordable territory as a surge in new apartment construction slows rent growth.
Updated on Sept. 28, 2026 in Apartments
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Nationwide, the number of cities deemed unaffordable for average earners fell to 30 as increased supply and softer demand eased pressures. Solo renters across the country now need $150 less per month in earnings than they did one year ago.
Why it matters
A recent surge of newly completed apartment units has helped moderate rent growth, providing some financial relief to households. These conditions are now being tested as the pace of new construction starts has reached its lowest quarterly total since 2011.
Solo renters need to earn $150 less per month than one year ago to maintain a 30% housing expense ratio. In high-cost hubs like New York City, however, a typical $3,840 monthly studio rent still requires a $153,600 annual income.
The players
The Economist
An international publication that produces indices tracking economic trends and housing costs.
The details
The index calculates affordability based on the standard benchmark that a household should spend no more than 30% of their gross income on housing. Market dynamics have shifted as developers added 695,000 apartments in 2024 and 531,000 in 2025, which helped inventory meet demand. Landlords are responding to this increased competition by offering incentives such as waived fees or free months of rent to attract tenants.
Timeline
2024: The U.S. added 695,000 new apartments.
2025: The U.S. added 531,000 new apartments.
September 2026: The Economist released the latest index report.
Money Landscape
The current rental market is in a period of cooling after a supply-driven dip in growth. The slowdown in new construction starts reaching 2011-era lows marks a potential departure from the recent trend of expanding inventory.
Renters in cities that recently transitioned to affordability may have more leverage when negotiating lease renewals or choosing a new unit. If you are shopping for an apartment, prioritize listings offering concessions like free months to lower your effective monthly cost.
The takeaway
While rental affordability has improved for many households, the sharp decline in new project starts suggests the period of rapid supply growth may be ending. Consider reviewing your housing budget against the 30% rule and consult a financial professional if you are planning a move.
Further reading
Learn more about navigating the current Apartments market and what to look for in your next lease.
Source note: This article includes information reported by New York Post.
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