Renters Have More Leverage This Spring Than Last

Zillow’s May rental market report lands right as leasing season kicks into gear — the stretch from late spring through summer when more renters move and competition typically heats up. Renters are catching a small break this year. The share of income going to rent ticked down nationally, and rent growth is slowing in many big metros.

But a household still needs about $77,000 a year to comfortably rent the typical U.S. home, roughly $20,000 more than before the pandemic. Here's how to use this spring's market to your advantage, wherever you're shopping.

1. Ask about concessions before you sign 

Your luck here will depend a lot on where you’re renting. Some markets, like Providence, New York, and Los Angeles are seeing more competition than others.

But nationally, 39.8% of rentals on Zillow offered a concession in April, up nearly 5 percentage points from a year ago. That means almost 2 in 5 listings include something extra — free weeks of rent, waived fees, reduced deposits, or parking. Many markets swing both ways over the years, so now is a good time to ask for more. 

What to do: In markets where concessions are widespread ask directly what the landlord can offer when you tour or apply. Assume an incentive is on the table and negotiate from there. Even in tighter markets, it's worth asking.

Top 10 markets by share of listings with a concession:

1. Denver, CO 68.3%
2. Charlotte, NC 66.6%
3. Dallas, TX 64.2%
4. Austin, TX 63.8%
5. Raleigh, NC 62.9%
6. Nashville, TN 62.6%
7. Salt Lake City, UT 62.5%
8. Atlanta, GA 59.1%
9. Phoenix, AZ 59.7%
10. Washington, DC     57.9%

2. Know your budget before you start touring 

The typical U.S. rent is $1,930 a month, and renters are spending roughly 26.7% of income on rent nationally. That's slightly better than a year ago.

What to do: Use Zillow's Rent Affordability Calculator to figure out your price range, so you know the monthly payment that actually fits your life — not just what you qualify for on paper. 

Then filter your search to that range. Affordability varies a lot by metro: a renter in New York, for example, is looking at a very different math problem (a household needs to make $136,242, or the median income household needs to spend 38.8% of their income, to afford the typical listing) than one in St. Louis ($57,444 needed; 20.0% of income).

3. Use slowdowns in softer markets to your advantage

Rents actually fell year over year in several big metros. That’s notable because annual rent declines are still relatively rare in most large markets. The largest declines happened in these five metros, as of April:

• Austin, TX -2.2%
• San Antonio, TX -1.7%
• Denver, CO -1.5%
• Tampa, FL -1.3%
• Houston, TX -0.9%

In these places, landlords are more often competing for renters — not the other way around. Many of these metros saw a wave of construction over the past few years. That gives you room to be picky.

What to do: If you're in one of these markets, you have more time to compare listings. Be selective, and push for a better price or upgraded unit at the same rent. Many landlords will negotiate. If your current lease is up for renewal, ask your landlord to match what new tenants are getting before you re-sign.

4. If you're in a tight market, prepare like an applicant

Not every renter lives in a market where landlords are competing for tenants. In some places, it's the other way around — listings move fast, options are limited, and rents are still going up. In April, rents kept climbing in some of the country's most expensive metros:

• San Jose up 5.1% to $3,534
• New York up 4.2% to $3,406
• San Francisco up 6.5% to $3,206
• Chicago up 5.4% to $2,219
• Providence up 4.7% to $2,154

Concession share is also much lower in those places, so asking for concessions may not bear fruit in the same way it would in Denver or Austin.

What to do: In a tight market, the renters who win are the ones who show up ready. Take these steps to move faster:

• Check your credit report as soon as possible and fix any errors — landlords lean on it to qualify tenants.
• Line up references and proof of income before you start touring.
• Apply with one application: Zillow lets you apply to unlimited participating rentals for 30 days with a single $35 fee, which keeps you from spending for every application.
• Negotiate the terms, not just the rent: In tight markets, landlords are less likely to drop the price, but they may flex on lease length, move-in date, parking, or pet fees.