One-third of property managers are offering concessions as rental market cools
An apartment construction boom is giving renters more options and better deals
- More new multifamily units were completed in June than in any month in the past 50 years.
- More than half of rentals are offering a concession in
Raleigh ,Charlotte ,Atlanta ,Salt Lake City ,Nashville andAustin . - The rental vacancy rate held steady at 6.6%. The last time a higher share of rentals sat empty was winter 2021.
The share of rental listings on Zillow offering a concession — a sweetener such as free weeks of rent or free parking offered as an incentive to rent — climbed to 33.2% in July. That's up slightly from 33% in June and 25.4% a year earlier.
"Builders have stepped up and built an incredible number of homes in response to soaring rents during the pandemic, and renters are now seeing the benefits," said Zillow Chief Economist
The past two years have been fairly friendly for apartment renters. While multifamily rents are still rising, up 5.1% since
Renters have enjoyed concessions more often during the past two years, as well. The share of rental listings on Zillow offering at least one concession was at a 29-month low in
More than half of rental listings on Zillow are offering a concession in six major metro areas:
One reason for the rental market cooldown is a multifamily construction frenzy that is opening up new options for renters and rebalancing the supply and demand seesaw. Almost 60,000 multifamily units were completed nationwide in June — the latest data available — which is more than in any month in half a century.
The supply boom still has legs, but it may have hit its peak. While there are still a huge number of multifamily units under construction — before this recent boom, 1973 was the last time this many units were being built —that number has fallen in each of the past eight months.
The rental vacancy rate, another measure of market tightness, held steady at 6.6% in the second quarter of this year, where it has sat for the past four quarterly readings. That's the highest since winter 2021.
Zillow provides a user-friendly platform for housing providers to share concessions information with prospective renters. Property managers can easily list concessions for their properties, and renters can find all available offers under the "Special Offers" tab on participating buildings' detail pages, enabling them to make well-informed housing decisions.
Metropolitan |
Typical Rent, |
Multifamily |
Multifamily |
Listings With a |
Concessions |
Concessions |
|
|
0.4 % |
2.6 % |
33.2 % |
0.2 ppts |
7.8 ppts |
|
|
0.6 % |
3.4 % |
15.9 % |
0.4 ppts |
3.9 ppts |
|
|
0.5 % |
2.0 % |
30.2 % |
1.7 ppts |
2.8 ppts |
|
|
0.4 % |
4.4 % |
24.9 % |
2.5 ppts |
8.1 ppts |
|
|
0.2 % |
-1.4 % |
47.6 % |
-1.1 ppts |
10.3 ppts |
|
|
0.1 % |
0.8 % |
35.4 % |
-0.6 ppts |
5.7 ppts |
|
|
0.7 % |
4.4 % |
47.4 % |
0.6 ppts |
2.5 ppts |
|
|
0.4 % |
3.2 % |
30.2 % |
1.7 ppts |
8.3 ppts |
|
|
0.1 % |
2.6 % |
17.4 % |
-0.1 ppts |
4.3 ppts |
|
|
0.0 % |
-1.4 % |
52.2 % |
-0.2 ppts |
14.5 ppts |
|
|
0.2 % |
4.2 % |
21.7 % |
2 ppts |
7.1 ppts |
|
|
-0.2 % |
-0.3 % |
50.1 % |
0.3 ppts |
9.6 ppts |
|
|
0.2 % |
0.5 % |
38.6 % |
-0.4 ppts |
0.7 ppts |
|
|
0.2 % |
2.2 % |
19.1 % |
-2.3 ppts |
1.7 ppts |
|
|
0.6 % |
4.8 % |
23.3 % |
2.5 ppts |
1.5 ppts |
|
|
0.5 % |
3.1 % |
44.2 % |
1 ppts |
12.1 ppts |
|
|
0.1 % |
2.3 % |
49.8 % |
-0.2 ppts |
10.9 ppts |
|
|
0.4 % |
0.1 % |
34.3 % |
1.4 ppts |
12.4 ppts |
|
|
0.3 % |
0.3 % |
42.0 % |
1 ppts |
13.9 ppts |
|
|
0.3 % |
1.3 % |
48.9 % |
0.8 ppts |
14.1 ppts |
|
|
0.5 % |
2.7 % |
32.7 % |
-2.2 ppts |
-5.6 ppts |
|
|
0.9 % |
3.9 % |
21.6 % |
-3.1 ppts |
3.8 ppts |
|
|
0.2 % |
-0.3 % |
38.7 % |
0.1 ppts |
8.6 ppts |
|
|
0.5 % |
-0.8 % |
53.1 % |
-2 ppts |
15.7 ppts |
|
|
-0.1 % |
-1.1 % |
46.4 % |
-2.4 ppts |
12.3 ppts |
|
|
0.6 % |
2.9 % |
43.5 % |
3.1 ppts |
6.3 ppts |
|
|
0.0 % |
2.5 % |
29.3 % |
1.8 ppts |
5.6 ppts |
|
|
0.6 % |
3.8 % |
21.8 % |
-0.5 ppts |
-0.2 ppts |
|
|
0.3 % |
4.0 % |
20.0 % |
1.6 ppts |
5.7 ppts |
|
|
-0.3 % |
-4.5 % |
50.5 % |
0.9 ppts |
14.1 ppts |
|
|
-0.02 % |
2.2 % |
39.4 % |
-0.1 ppts |
2.5 ppts |
|
|
0.4 % |
4.9 % |
26.7 % |
-2.6 ppts |
7.9 ppts |
|
|
0.6 % |
3.3 % |
34.4 % |
-1.3 ppts |
10.5 ppts |
|
|
1.0 % |
2.4 % |
33.2 % |
0.6 ppts |
8.8 ppts |
|
|
0.4 % |
6.5 % |
23.1 % |
-0.3 ppts |
4.6 ppts |
|
|
0.9 % |
2.7 % |
33.6 % |
3.1 ppts |
-9.7 ppts |
|
|
0.2 % |
0.2 % |
50.8 % |
0.5 ppts |
11.1 ppts |
|
|
0.9 % |
5.0 % |
28.6 % |
-1 ppts |
10.7 ppts |
|
|
0.9 % |
7.0 % |
13.6 % |
-1.4 ppts |
6 ppts |
|
|
-0.1 % |
-1.4 % |
45.6 % |
-0.2 ppts |
17.8 ppts |
|
|
0.5 % |
4.8 % |
17.1 % |
-1.5 ppts |
-1.8 ppts |
|
|
1.2 % |
3.1 % |
23.8 % |
3.3 ppts |
11.1 ppts |
|
|
0.3 % |
-2.4 % |
53.3 % |
1.8 ppts |
14.7 ppts |
|
|
0.1 % |
2.8 % |
25.8 % |
-0.2 ppts |
9.8 ppts |
|
|
0.9 % |
5.1 % |
38.5 % |
1.5 ppts |
4.9 ppts |
|
|
0.2 % |
6.2 % |
30.4 % |
5.3 ppts |
11 ppts |
|
|
0.2 % |
3.5 % |
10.1 % |
-0.7 ppts |
2 ppts |
|
|
0.3 % |
1.7 % |
50.9 % |
-1.7 ppts |
6.7 ppts |
|
|
0.6 % |
8.3 % |
23.3 % |
-0.7 ppts |
9.5 ppts |
|
|
0.9 % |
5.0 % |
N/A |
N/A |
N/A |
|
|
0.4 % |
-0.7 % |
36.3 % |
7.2 ppts |
12.8 ppts |
*Table ordered by market size |
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SOURCE Zillow