Why Renters Are Finally Catching a Break and What It Means for Your Next Move

For the past few years, renting has felt like an uphill battle. Every lease renewal came with that familiar knot in your stomach, the one that appears right before you open the email and see how much higher your rent will be. For many of us, it’s been a cycle of stretching paychecks, comparing apartments, and wondering if homeownership would ever feel possible.

But this year, something different is happening. According to Zillow, rental affordability has reached its best point since 2021. The typical rent now takes up about 28 percent of the median household income. That’s the first time in years it has fallen below the old “one-third of your paycheck” rule that so many renters use as a guide. It’s not a full-blown renter’s paradise, but it is the first real relief we’ve seen in a long time.

So, what’s driving the shift? A surge in new construction.

Developers across the country have been busy. In 2024, more multifamily buildings were completed than in any year since the 1970s. With more apartments available, renters finally have options again. Landlords are starting to compete for tenants, which means more deals and incentives are showing up. Almost 40 percent of listings on Zillow now offer something extra, such as a free month of rent, a lower deposit, or a move-in credit. Landlords are realizing they have to give a little to keep their units full.

For renters, this change means one thing: you have leverage again. If your lease is ending soon, take the time to explore your options. You can ask about renewal incentives, request a rent adjustment, or look for newer properties that are offering better terms. After years of limited choices, you deserve to see what’s available and make decisions that truly work for your budget.

Beyond short-term savings, this shift is also an opportunity to think about your next financial move. The same markets seeing a rise in rental construction—places like Atlanta, Charlotte, Austin, and Phoenix—are also showing early signs of balance in the homebuying market. When supply increases, prices tend to stabilize. That could create openings for first-time buyers who have been waiting for the right time to step in.

Even if you’re not ready to buy immediately, now is the perfect time to start preparing. Review your credit report and correct any errors. Focus on improving your credit score. Revisit your budget to see how much you can realistically save toward a down payment. The goal is not to rush into homeownership but to position yourself for success when the right opportunity comes.

Lower rent offers a bit of breathing room, but renting will never create the kind of long-term wealth and stability that ownership provides. This current shift in the market is a reminder to use this time strategically. Relief at the rental level is good, but the real freedom comes when you own the roof over your head.

If you’ve been dreaming about turning your rent payment into a mortgage, my 12 Steps to Homeowner program can help you get there. It’s designed for women of color who are ready to build wealth and stability through real estate. Inside the program, I walk you through everything from improving your credit and finding the right lender to calculating what you can afford and navigating the buying process with confidence.

The market is changing. The question is whether you’ll be ready to make your move when opportunity meets preparation.

She Builds Equity is a platform that helps women of color build wealth, confidence, and community through homeownership and real estate investing.