According to the February 2018 Zillow Real Estate Market Report, residential median rents across the US are accelerating at the fastest pace in 21 months. Over the past year, the median rent in the US rose by 2.8% to a Zillow Rent Index (ZRI) of $1,445.

The fastest appreciating rental markets are along the West Coast in Sacramento, Calif., Riverside, Calif., and Seattle. This is the seventh month in a row that Sacramento has topped the list of markets with the fastest rental growth. Median rent in Sacramento rose more than 8% since last February to a ZRI of $1,849. Minneapolis and Atlanta are also among the fastest-appreciating rental markets, both up by around 4.5% over the past year.

“Rental appreciation slowed between 2015 and mid-2017, but is once again picking up steam, reaccelerating over the past nine months,” said Zillow senior economist Aaron Terrazas. “For-sale inventory is tight, and with home prices continuing their rapid climb, it's becoming more and more difficult for renters to become owners, forcing them to rent longer than they otherwise would have.

“Were it not for strong new apartment construction over the past half-decade, rental appreciation would be even stronger than it is now.”