Rental discounts have more than doubled compared to pre-pandemic levels, with nearly two in five properties now offering free rent, waived fees or reduced move-in costs, giving landlords the strongest bargaining position in years, according to a new Zillow analysis.
Renters this spring will have more choice, more inventory and more leverage than at any point before the pandemic.
Rental discounts have more than doubled compared to pre-pandemic levels, with nearly 2 in 5 properties offering free rent, waived fees or reduced move-in costs, giving landlords the strongest bargaining position in years, according to a new Zillow analysis.
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Zillow reported that the share of listed properties with concessions this spring was 39.8%, up 5 percentage points from a year ago and more than double the pre-pandemic rate of about 1 in 6 people.
National rental vacancy rates are driving this trend. That rose to 7.3% from 5.6% in 2021 as a wave of apartment construction across the Sunbelt boosted inventory.
However, not all markets look the same. Denver leads the list with 68.3% of properties offered for concession, followed by Charlotte with 66.6% and Dallas with 64.2%, with both markets seeing a high concentration of construction. Buffalo is on the other end of the spectrum at 11.1%, and competition among renters remains stiff. And not all markets followed national trends. According to Zillow data, San Francisco is down 8 points from a year ago, San Jose is down 6.5 points and Baltimore is down 3.6 points.
For property managers and rental agents, Zillow’s data reveals some important insights. Nearly 6 in 10 renters say it’s essential to check rates and lease terms in advance, and more than half say they want a private tour before signing.
“Renters don’t need to settle down this spring,” said Kara Ng, senior economist at Zillow. “There is more supply on the market than there has been in decades, there is real choice and there is plenty of room for negotiation.”
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