As rent growth slows in many parts of the nation, more property owners are offering concessions like free weeks of rent or free parking to lure tenants to their buildings.
Rent concessions have increased from 2023 levels in 40 of the 45 largest metro areas, according to Zillow. One in three rentals listed on the real estate marketplace offered at least one concession in July this year – up from one in four last year. In 25 metros, the share of rentals with a concession rose from June to July, but in 24 it fell.
The report noted that the Zillow Observed Renter Demand Index, a measure of rental market tightness, plummeted 23.3% since July 2023. But it said this was due less to a slump in demand than to the large number of new apartments coming online. The non-seasonally adjusted rental vacancy rate remained at 6.6% in the second quarter, unchanged since its level in winter 2021.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
