As the construction-to-rent sector faces new regulatory threats, operators are rethinking one of the industry’s most familiar vehicles: concessions.
During a panel discussion Tuesday at the IMN Build-to-Rent Spring conference in Nashville, Tennessee, executives from across the industry described a market that no longer moves in lockstep. Instead, pricing has become very local, very strategic, and increasingly tied to how well operators can communicate value to renters.
Fragmented BTR situation
Rent discounts are starting to narrow, but remain widespread, according to Zillow data.
In January, 38.8% of Zillow’s rental listings (including multifamily and single-family rentals) offered concessions. This is a decrease of 0.6 percentage points from the previous month and a decrease of 2.3 percentage points from the previous year, indicating a gradual decline nationwide. The backlash has been felt in most markets, with concessions declining in 35 major metropolitan areas, led by San Jose, California. Richmond, Virginia. and Louisville, Kentucky.
However, this trend is not universal. Concessions increased in 15 metros, including Birmingham, Alabama. Detroit and Houston continue to perform well, with 19 of the 50 largest markets maintaining year-over-year growth, with Birmingham, Las Vegas and Columbus, Ohio, posting the largest increases for the year.
Zillow also reports that rents for single-family homes continued to creep up in January, with the typical asking rent reaching $2,186, up 0.2 percent month-over-month. Although recent growth has been modest, prices are still significantly higher than pre-pandemic levels.
Since the beginning of 2020, single-family rental prices have increased by 43.8 percent, reflecting years of strong demand and limited supply. On an annual basis, rents are still rising, up 2.7% year over year, indicating steady growth as the market begins to normalize.
Melanie French, CEO of RR Living, said the company is taking a more conservative approach to renting and reviews pricing on an almost weekly basis. At the same time, she feels a noticeable change. Concessions are starting to slow, but not everywhere.
Daniel Koontz, senior managing director at Rangewater Real Estate, whose firm primarily manages third-party assets, said concessions remain prevalent in many markets, especially as operators rethink their renewal strategies. Genstone Property Management President Brian Jenkins said his team is actively working to reduce reliance on discounts.
The result is a patchwork of approaches that can be confusing for operators as well as renters. “In one market, you might see owners doing completely different things,” French says. “For a long time, we saw significant concessions, and then it went away. And now it feels like it’s coming back.”
“It’s not always a race to the bottom on price.”
Even where concessions remain, their roles are changing. French said he is moving away from traditional rent discounts altogether, opting instead for more creative incentives to maintain revenue. “I’m really tired of losing my income,” she said. “I’d like to give someone an IKEA gift card. When people start nesting and decorating their homes, they’re more likely to stay home.”
Other panelists echoed similar sentiments, pointing to a shift toward experiential or service-based benefits. In lieu of rent discounts, operators are offering house cleaning services, lifestyle perks and conveniences, retail and furniture incentives, technology bundles, and more.
Koontz said today’s renters are more informed and selective than ever before. “The residents are really smart. They know they have power,” she says. “Price competition is not always about coming to the bottom.” Success often lies in reframing the conversation. “If you can show them what else they can get for their money, that’s where their attention will go,” she added.
As pricing strategies become more complex, the role of leasing teams also expands. Renters face a wide range of rate structures, sometimes even within the same submarket, as different operators offer different discounts.
This puts pressure on leasing companies to clearly explain not just how much renters are paying, but why. “There’s a lot of information out there about the concessions,” Koontz said. “The leasing team needs to be able to explain the value behind it.”
Often, the difference between a deal being closed and a prospect lost is how effectively you communicate your value.
Amenities that actually move the needle
Beyond pricing, panelists emphasized that what residents value in built-for-sale communities is often different from what they expect from traditional multifamily housing. For example, parking has emerged as a surprisingly powerful differentiator, especially in a car-dependent market like Dallas, where convenience and accessibility can directly impact leasing decisions.
“Communities with good parking are highly undervalued,” Koontz said, pointing to the need for garages, driveways and visitor parking that can accommodate larger vehicles.
Teresa Steen, senior vice president of operations for Quinn Residences, said two-car parking is especially desirable in the Southeast, as is pet-friendly amenities. “People really love their pets and are willing to spend money on them,” she said.
Other high-impact amenities include privacy fences, dog runs, outdoor spaces, walking trails, and outdoor facilities. “There was a time when smart home technology was not expected,” Koontz said. “It’s almost standard now, from smart thermostats to garage access to Ring doorbells.”
At the same time, operators are rethinking traditional amenities like fitness centers and clubhouses. French said her company is leaning into wellness programs, including hiring a wellness director, while exploring lower-cost options such as virtual fitness classes and partnerships with national gym brands like Planet Fitness.
“You don’t necessarily need a full fitness center anymore,” she said.
The rise of bundled living and price transparency
As inflationary pressures continue, carriers are also taking a more strategic approach to pricing. Many are leaning toward bundled services, making it clear what residents are paying for. This is especially important as federal regulators move to crack down on hidden rents, and the FTC has begun a rulemaking process that could require clearer up-front disclosure of total housing costs.
The FTC’s efforts target common fees such as internet, trash, and smart home fees that may be excluded from advertised rents. For build-to-rent operators, which often rely on bundled services and fee-based revenue, the changes could reshape how pricing is structured and presented.
At Quinn Residences, Steen said residents receive an itemized breakdown of services such as landscaping, pest control and internet (often at below-market rates). RangeWater takes a similar approach with its “Effortless Living” bundle, which consolidates services into a single monthly payment.
“Residents would rather write one check than send multiple checks to multiple providers,” Koontz said. These bundles often include internet and smart home features, as well as junk removal and maintenance services.
Transparency is key, panelists agreed. “It’s all about how you communicate the price,” French says. “If you’re honest and don’t try to hide anything, there won’t be any negative consequences.”
Email Nick Pipitone
