This spring, almost 40% of rental ads on Zillow include a concession, such as a free month of rent, waived fees, or reduced move-in charges. This is the largest percentage ever seen at this time of year. Finding an apartment used to require you to stand in line with twelve other candidates and hope your offer stood out. Property managers are the ones making the advances this spring. Nearly two out of every five Zillow rentals include a concession, such as a free month of rent, eliminated application fees, or reduced move-in charges. This is the highest percentage ever noted for this time of year.
According to recent data, the change has been long overdue. The market now has more supply than tenants have seen in years due to the recent increase in apartment construction. Developers produced 608,000 new multifamily apartments in 2024—more than double the yearly average since 1990 and the highest number in almost 40 years. Renters now have more alternatives and leverage than they’ve had in a long time because vacancy rates have increased in tandem with supply, and property managers are striving to draw in and keep excellent tenants.
When competition for flats was at its peak in 2021, the national rental vacancy rate was 5.6%. Since then, it has risen to 7.3%. That is a significant change. Today’s tenant has the freedom to consider their options, negotiate terms, and take their time, unlike in the past when a desired unit would have attracted a dozen applications in a single weekend. Additionally, it provides a clear illustration of what affordability relief actually entails. More rental availability directly leads to an increase in vacancy, which is beginning to manifest in rents.
“Renters don’t have to settle this spring,” said Kara Ng, Senior Economist at Zillow. “With more supply on the market than in decades, there are real choices out there—and real room to negotiate on price, perks and terms. Renters are in a position to push for a better deal, and property managers are ready to give them one.”
Regional Differences Impact New Building
In the Sun Belt, where construction has been most vigorous, the wave of new construction has been felt most keenly. In recent years, apartment completions have increased in Denver (68.3%), Charlotte (66.6%), Dallas (64.2%), Austin (63.8%), and Nashville (62.6%). These five cities are currently at the top of the list of markets where property managers are providing the greatest incentives to fill units. Renters in these cities are benefiting from supply exceeding demand.
Every market has a different narrative. The markets with the fewest listings giving concessions are Buffalo (11.1%), Providence (12.6%), and New York (18.4%), indicating that supply and demand are still keeping up. Property managers don’t need to offer extras to get a lease signed in Zillow’s most popular rental markets since tenant competition is still so intense.
The savings can quickly mount up, and concessions are frequently negotiable. A free month is significant at a time when the average American rental costs around $77,200 annually. A free month’s rent, which can add up to thousands of dollars over the course of a lease, is not the best concession, according to 15% of recent tenants, according to Zillow’s Consumer Housing Trends Report. This type of cushion can be used to reorganize a monthly spending plan, create an emergency fund, or help with a down payment on a first house.
Making things simple is rewarded in this market for property managers. Renters are doing their homework: over half think a private tour is necessary before they’ll sign, and nearly six out of ten say seeing fees and lease details up front is crucial. Simple actions like prominently listing concessions and turning on Instant Tours can be the difference between a signed lease and a longer-empty unit. Overall, experts suggest there is now a market that is worthwhile for tenants who were previously waiting in line and hoping.
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