Housing Market Report for Summer 2026

As summer approaches, Americans are still grappling with a challenging housing market. Recently, a report shed light on the state of rentals across the nation.

According to an analysis from Zillow, the Northeast and California are expected to dominate the list of the hottest rental markets this summer, although there are exceptions. Kara Ng, a senior economist at Zillow, notes, “In the hottest rental markets, the demand far outstrips the available rental homes.” This intense competition is driven by factors like amenities, strong job opportunities, and family connections.

While the U.S. has seen more new developments in 2024 than in the past fifty years, most of this growth has been in areas outside the Northeast and coastal regions, amplifying rental competition there.

Top 10 Hottest Rental Markets

Here’s a summary of the top markets for summer 2026, highlighting annual rent growth and vacancy rates based on Zillow’s Observed Rent Index (ZORI).

Providence, Rhode Island

• Annual rent increase: 5%
• Expected vacancy rate: 5.1%
• ZORI: $2,154

New York, New York

• Annual rent increase: 4.5%
• Expected vacancy rate: 4.3%
• ZORI: $3,406

San Francisco, California

• Annual rent increase: 5.4%
• Expected vacancy rate: 4.3%
• ZORI: $3,206

Hartford, Connecticut

• Annual rent increase: 3.9%
• Expected vacancy rate: 4.3%
• ZORI: $1,940

Los Angeles, California

• Annual rent increase: 2.4%
• Expected vacancy rate: 4.5%
• ZORI: $2,892

Chicago, Illinois

• Annual rent increase: 5.7%
• Expected vacancy rate: 5.3%
• ZORI: $2,219

Boston, Massachusetts

• Annual rent increase: 2.5%
• Expected vacancy rate: 6.3%
• ZORI: $3,184

Milwaukee, Wisconsin

• Annual rent increase: 4.1%
• Expected vacancy rate: 3.8%
• ZORI: $1,540

Virginia Beach, Virginia

• Annual rent increase: 4.8%
• Expected vacancy rate: 4.1%
• ZORI: $1,843

San Jose, California

• Annual rent increase: 4.1%
• Expected vacancy rate: 4.9%
• ZORI: $3,534

This report indicates that the housing market remains dynamic, with varying conditions across regions. It’s worth keeping an eye on how these trends evolve as we head into the summer months.