A record number of landlords are giving more and more rental concessions, reaching a high of 37% in September, according to a release.
Subdued rent growth and record-breaking concessions from landlords are turning up now after a deluge of newly built apartments hit the market last year, according to the company’s latest rental market report.
Rental managers have turned to concessions – such as free months of rent or free parking – instead of lowering rents. The 37.3% of rentals on Zillow offering some sort of freebie in September is an increase from 14.4% in 2019.
“Those concessions likely will continue to rise; they typically peak in winter or early spring. As concessions become the norm, property managers may need to consider price cuts, particularly as the year winds down. Competition among prospective renters tends to fall off over the cooler winter months,” the release says.
Rent-concession highlights from the report
- 37.3% of rentals on Zillow offered concessions in September, up from 36.7% in August and 35.8% in September 2024.
- The share of rentals with concessions is lower, on a monthly basis, in 13 major metro areas. The largest monthly drops in the share of rentals with concessions are in Birmingham (-3ppts), Los Angeles (-1.9ppts), Minneapolis (-1ppts), Cleveland (-1ppts), and San Francisco (-0.8ppts).
- The share of rentals with concessions is higher, on a monthly basis, in 37 major metro areas. The largest monthly increases in the share of rentals with concessions are in Pittsburgh (4.5ppts), Seattle (3.7ppts), Richmond (3.3ppts), Raleigh (3.2ppts), and Hartford (3.1ppts).
- Rent concessions are up from year-ago levels in 33 of the 50 largest metro areas. The annual increase in share of rental listings with concessions is highest in Memphis (10.9ppts), Denver (10.6ppts), Houston (9.4ppts), Orlando (8.1ppts), and Las Vegas (8ppts).
Affordability rises nationwide as rents ease
Cooler growth and even declining rents in some rental markets are contributing to better nationwide affordability than renters have seen in four years.
A typical rental now requires 28.4% of the median household income nationally, down slightly from 28.8% a year ago and below the roughly one-third threshold where housing becomes a financial burden.
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