After a winter that saw nearly a third of rental listings tempting tenants with concessions like free months of rent or free parking, new data from Zillow reveals the share of rentals offering perks may have hit its peak. If past seasonal trends continue to hold, renters looking to secure a new lease in the upcoming spring or summer may encounter fewer incentives and increased competition. The good news for renters is that the market is friendlier than it was a year ago, with the share of rentals offering a concession rising 5.6 percentage points.

In February, 32.2% of rental listings on Zillow offered a concession, down slightly from December and up 5.6 percentage points from a year earlier, marking the slowest annual growth pace since last June. After seven months of consecutive monthly increases to end 2023, the share of rentals offering concessions fell to 31.9% in January before a slight uptick last month. 

The rental market has seasonal patterns, and it is common for concessions to level off as warmer months approach. February’s data indicates the market is beginning to find its new equilibrium. 

Rent price growth is also easing off as high demand is being met by apartment construction and delivery of new buildings. The share of rental homes sitting empty was at 6.6% in the fourth quarter of 2023, which is just a bit higher than the nearly forty-year low seen in late 2021 and early 2022. This shows there are enough eager renters, nudging the market toward stability. 

Metros Leading the Concession Charge

Certain markets continue to lead with high shares of concessions. These metros exemplify the diversity within the rental market, with strategies varying widely across regions to attract tenants.

Rental concessions are being offered on more than half of rental listings on Zillow in Salt Lake City (60.3% of rental listings on Zillow offering a concession), Austin (55%), Charlotte (53.5%), Dallas (50.7%) and Raleigh (50.6%). 

In nine out of the ten metros where the share of rental concessions is highest, rents are growing more slowly than the nationwide 3.5% annual rate, and they are outright falling in Austin. This could mean there are more apartments available than there are people looking to rent them.

Concessions are most scarce in New Orleans (10.9% of rental listings on Zillow offering a concession), Providence (12.3%), Miami (14.8%), Milwaukee (15.2%) and the New York City metro area (15.7%).