Zillow has released its hottest rental markets for summer, with Providence, Rhode Island, topping the list. Its analysis highlights markets in the Northeast, Midwest, and coastal California, where rents are climbing, vacancies are low, and property managers offer few concessions. This is in contrast to high-supply Sun Belt markets like Austin, Texas; Tampa, Florida, and Phoenix, where the influx of new construction has softened rent growth.
“In Zillow’s hottest rental markets, the math is simple: More people want to live there than there are homes to rent—whether for access to amenities, strong job markets, or family ties, renters are competing over a limited supply,” said senior economist Kara Ng. “The United States built more new units in 2024 than any year in the past half-century, but that boom largely bypassed the Northeast and coastal California, which is exactly why rental competition there is so intense. Markets that missed out on the list aren’t necessarily lacking demand; they just did a better job bringing new supply online.”
The top 10 markets include:
- Providence
- New York
- San Francisco
- Hartford, Connecticut
- Los Angeles
- Chicago
- Boston
- Milwaukee
- Virginia Beach, Virginia
- San Jose, California
Providence, known as the “Creative Capital,” has been a popular locale for both renters and buyers, coming in at No. 4 on Zillow’s hottest for-sale markets earlier this year. According to Zillow, rents are up 5% year over year, with the typical rent of $2,154 a month. Only 12.9% of property managers are offering concessions in the market, the lowest share in the top 10.
New York, which has remained one of the most competitive rental markets in the nation, is seeing strong demand with 4.5% annual rent growth and a typical rent of $3,406 a month. Citing StreetEasy’s data, Zillow noted inventory across the five boroughs fell 7% from a year ago. In addition, the vacancy forecast is 4.3%, and the share of concessions is at 17.8%.
“While new construction has been increasing in the outer boroughs in recent years, it hasn’t been enough to offset the continuous decline of available rentals in Manhattan,” noted StreetEasy senior economist Kenny Lee. “Fewer available rentals and rapidly rising rents have incentivized renters to stay put, which has kept the city’s vacancy rate at a record-low level. New York City renters should expect competitive conditions to continue for the foreseeable future as the city continues to dig itself out from decades of underbuilding.”
At No. 3, San Francisco continues to draw renters to its job market. It boasts annual rent growth of 5.4%, the second highest on the list, and a forecast vacancy rate of 4.3%. Concessions are higher in the market, with 33.2% of property managers offering them.