2026 will be a reckoning year for the rental market as the next 12 months will force rental property operators to rebalance tech, transparency, and affordability to meet a more cautious, value-driven renter.
By Virginia Love
After years of soaring rents and affordability pressures, the rental market is heading for what Virginia Love, a 30-year industry veteran, calls “a reckoning year.”
Income growth has finally surpassed rent growth, giving renters new leverage and putting pressure on operators to demonstrate value and transparency.
Meanwhile, Gen Z renters have burst onto the scene as the most informed, selective, and transient cohort in history, demanding value and transparency in every interaction.
Love, who is industry principal at Entrata, says the next 12 months will force operators to rebalance tech, transparency, and affordability to meet a more cautious, value-driven renter.
Her top calls for a 2026 reckoning year for the rental market include:
- The return of “worth.” Renters will pay for what feels worth it, not just what’s cheapest. Operators who can tell that story clearly will win.
- AI becomes a true partner: Tech and automation will finally streamline, not strain, onsite teams through smarter integration and training, while also elevating the renter experience with faster responses, proactive service, and more personalized living.
- Gen Z reshapes operations: Their focus on purpose, flexibility, and authenticity will redefine community culture––sparking change not just for renters, but for Gen Z employees, too.
- Amenities get personal: Expect growth in lifestyle-driven, creator-friendly spaces like podcast studios and co-working lounges.
Love did a question and answer session with Rental Housing Journal around a few key questions for the 2026 rental market:
Q: What is an example of how the value-driven renter is going to encounter higher rents and inflation in 2026?
A: “We’re heading into 2026 with the consumer still firmly in charge. Renters are smarter, pickier, and more mobile than ever, and they’re not afraid to move if the math stops making sense. Value will stay the headline, which doesn’t mean ‘cheap.’ They’ll pay for what’s worth it: transparency, convenience, and a sense that the community is actually meeting their expectations.
“As inflation lingers, I expect more renters to right-size, such as moving to different price points or smaller markets to preserve that sense of worth. Operators should prepare for a year where every renewal is a negotiation around value. You can’t just sell the price; you’ve got to sell why it’s worth it. The communities that articulate that clearly, especially when it comes to fees, will be the ones that keep occupancy stable.”
Q: What exactly does a value-driven renter want and how does it vary between an urban versus suburban apartment?
A: “Across every demographic, renters want the same fundamentals: technology that works, fast response times, a seamless leasing process, a pet-friendly community (pets are part of the family everywhere).
“Where the value conversation shifts is by ZIP code. In urban markets, renters will still pay a premium for convenience, for walkability, proximity, and a lifestyle that saves time.
“In suburban markets, value leans toward space and comfort: room to breathe, maybe a backyard for the dog, ample parking, and storage. All of it delivered without surprise fees.
“Heading into 2026, I think renters in both settings will expect more personalization with less noise. They want to feel known, not marketed to, and the best operators will make technology almost invisible, working quietly behind the curtain to deliver that smooth, reliable experience that feels worth every dollar.”
Q: Additional predictions re: luxury housing, Gen Z and technology?
A: “We’re starting to see luxury fatigue set in. Renters aren’t chasing natural stone countertops and rooftop cabanas the way they used to.
“Now, they’re chasing balance. The growth opportunity now is in what I call ‘attainable housing:’ high-quality, well-designed communities that still feel realistic. It’s about creating spaces that look good, live well, and make sense for the budget. That’s where demand, and loyalty, will come from in 2026.
“Gen Z is setting the tone for the industry. This generation values flexibility, mental health, and meaning, and it’s changing everything from how we hire and train to how we design and market communities.
“They want authenticity and purpose in the places they live and work. You’ll see that influence show up in lifestyle-driven amenities, like creator studios, co-working spaces, wellness programming, and personalized resident experiences. Operators who don’t adapt to that mindset will find themselves out of sync with both their teams and their residents.
“Technology’s about to move behind the curtain. The best systems won’t be what renters see; it’ll be what makes everything else seamless. If the tech’s working right, the renter shouldn’t even notice it. Friction-free, invisible, and fast.”
About the author:
Virginia Love, Industry Principal at Entrata, began her multifamily career 30+ years ago in leasing and has been passionate about the industry ever since. Now Industry Principal at Entrata, she helps drive innovation and strategy across multifamily. Virginia’s a NAA Lyceum graduate, twice named Globe St. Multifamily Influencer, a Connect CRE Woman in Real Estate, a recipient, and an Apartment All-Star. She’s a past Atlanta and Georgia Apartment Association Chair, and was inducted into the GAA Hall of Fame in 2025.
