Renters could see some relief in 2026, as Zillow predicts home values will stay relatively flat next year — easing pressure across the housing market and helping keep rent increases in check.
Rent affordability is expected to continue improving in much of the country after a year where incomes rose faster than rents in nearly four out of five major metro areas.
Rents increased about 1% year over year, while incomes climbed roughly 4% in the D.C. market, according to Zillow.
In October, a median-income household spent 27.2% of income on the typical U.S. rent — the lowest share since August 2021.
The gap between owning and renting is rapidly closing, particularly in D.C., Orphe Divounguy, a senior economist at Zillow, told WTOP. In the D.C. market, that gap has narrowed to about $400 a month.
“The typical rent in the D.C. market, is roughly $2,400 compared to the cost of owning at about $2,800 in November,” Divounguy said. “With the gap closing, more and more renters will probably consider making the leap into buying their first homes.”
A lot of people who are not able to afford to buy a home yet will keep renting as they start families. Divounguy believes that will lead to more and more child-focused amenities such as imagination centers and homework pods.
“Property managers that invest in amenities that are more kid-friendly are going to be able to attract more renters, especially those with families, and keep them,” Divounguy said.
According to the Zillow consumer housing trends report, nearly three in five renters plan to rent for at least the next year. Even if mortgage rates dropped, only 37% said they would buy, which is down from 45% last year.
Renting is becoming a deliberate choice, reducing home-maintenance costs and supporting mobility.
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