10 hottest rental housing markets in the US this summer

• Providence, Rhode Island tops the list with 5% annual rent growth and a 5.1% vacancy rate forecast, while typical rents (ZORI) reach $2,154
• New York City, San Francisco, and San Jose command the highest rents at $3,406, $3,206, and $3,534 respectively, with low vacancy rates between 4.3% and 4.9%
• Chicago shows the strongest rent growth at 5.7% annually, while Milwaukee has the tightest market with just a 3.8% vacancy rate forecast

Summary: Top 10 U.S. Rental Housing Markets for Summer 2026

A new Zillow report identifies the hottest U.S. rental markets for summer 2026, with demand significantly outpacing supply, particularly in the Northeast and coastal California.

Key Markets and Data:

Top Three Markets:

1. Providence, RI - 5% annual rent growth, 5.1% vacancy rate, $2,154 median rent (ZORI)
2. New York, NY - 4.5% growth, 4.3% vacancy, $3,406 median rent
3. San Francisco, CA - 5.4% growth, 4.3% vacancy, $3,206 median rent

Other Notable Markets:

• San Jose, CA commands the highest median rent at $3,534
• Chicago, IL shows strongest rent growth at 5.7%
• Milwaukee, WI has the tightest market with 3.8% vacancy rate
• Boston, MA ($3,184), Los Angeles, CA ($2,892), Hartford, CT ($1,940), Virginia Beach, VA ($1,843) round out the top 10

Market Dynamics:

Supply Constraints: The U.S. built more housing units in 2024 than any year in the past 50 years, but this construction boom largely bypassed the Northeast and coastal California, creating intense rental competition in these regions.

Regional Patterns: Seven of the ten hottest markets are in the Northeast or California, with only Chicago, Milwaukee, and Virginia Beach breaking the geographic concentration.

Investment Implications:

Kara Ng, Zillow's senior economist, notes that markets absent from the list aren't lacking demand—they simply succeeded in bringing new supply online. This suggests continued pricing power for landlords and REITs with exposure to Northeast and coastal California markets, while highlighting supply-demand imbalances affecting housing affordability nationwide.