Nearly 40% of rental listings on Zillow this spring include concessions such as free rent, waived fees, or discounted move-in costs, the highest share recorded for this time of year.
A surge in apartment construction has boosted rental inventory and pushed the national vacancy rate to 7.3%, giving renters more negotiating power.
Denver, Charlotte, Dallas, Austin, and Nashville lead the nation in rental concessions, while Buffalo, Providence, and New York have the fewest deals.
The spring housing market has been somewhat disappointing for both buyers and sellers. However, renters across the U.S. are finding more bargaining power this spring as landlords increasingly offer incentives to fill vacant units, according to a new Zillow analysis.
Nearly 40% of rental listings on Zillow featured concessions this spring, up from about one-third a year ago and more than double the share seen before the pandemic. The incentives include offers such as free rent, waived application or parking fees, and reduced move-in costs.
The trend reflects a significant shift in market dynamics. After years of intense competition among renters, a wave of apartment construction has added substantial inventory in many metro areas, particularly across the Sun Belt. As a result, the national rental vacancy rate has climbed to 7.3%, compared with 5.6% in 2021, when demand far exceeded supply.
Renters are in the driver’s seat
"Renters don't have to settle this spring," Zillow Senior Economist Kara Ng said in the report, noting that increased supply has created more opportunities for renters to negotiate pricing, lease terms, and other perks.
The most concession-heavy markets are concentrated in fast-growing Sun Belt cities where apartment development has surged in recent years. Denver tops the list, with 68.3% of listings offering incentives, followed by Charlotte (66.6%), Dallas (64.2%), Austin (63.8%), and Nashville (62.6%).
In contrast, landlords in highly competitive rental markets have less need to entice prospective tenants with discounts. Buffalo reported the lowest share of concessions at 11.1%, followed by Providence (12.6%), New York (18.4%), New Orleans (19.2%), and Chicago (21.7%).
So, just how much can you save?
For renters, the savings can be substantial. Zillow estimates that a typical U.S. renter now needs an annual income of nearly $77,200 to comfortably afford rent. With the typical rental costing about $1,930 per month, a concession such as one month of free rent can translate into nearly $2,000 in savings.
The report suggests the rental market is becoming increasingly favorable for tenants, particularly in regions where new housing supply continues to outpace demand.
As landlords compete for residents, industry analysts say renters may find opportunities not only to secure lower upfront costs but also to negotiate better lease terms overall.