How Rent Concessions Are Driving Multifamily Leasing Competitiveness
Almost 40 percent of listings this year included some form of incentive, according to Zillow.
While many markets are still in the process of absorbing substantial amounts of new supply, some of the largest apartment management companies find themselves competing for new tenants through rent concessions.
The incentives may include free rent, waived fees and discounted move-in costs. In fact, during the first four months of 2026, such concession-driven deals made up nearly 40 percent of listings, according to a Zillow report.
For reference, property managers packed inducements in one out of three lease deals last year. Before the pandemic, this occurrence was even less frequent, at only one in six agreements.
Supply-heavy markets topped the concessions charts as property managers leveraged incentives to attract renters. Denver led with 68.3 percent of leases including some form of concession, followed by Charlotte, N.C. (66.6 percent), Dallas (64.2 percent), Austin, Texas (63.8 percent) and Raleigh, N.C. (62.9 percent).
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Eight metros recorded an annual concessions increase of more than 10 percent in the share of incentive-packed deals. These included Birmingham, Ala. (17.7 percent year-over-year increase), Memphis, Tenn. (13.1 percent), Columbus, Ohio (12.6 percent), Indianapolis (12.2 percent) and Dallas (10.4 percent).
The two most sought-after concessions revolved around rent. More than a quarter of tenants considered reduced rent to be the top incentive, while 17 percent chose a rent-free first month, according to a different Zillow report.
Rent concessions are less likely in certain markets
Certain coastal and Midwestern markets presented a tilt in favor of property management, with concessions significantly less likely to occur. Buffalo, N.Y., recorded the least share of incentive-packed deals (11.1 percent), followed by Providence, R.I. (12.6 percent), New York City (18.4 percent), New Orleans (19.2 percent) and Chicago (21.7 percent).
Similarly, markets such as San Francisco (-8 percent) registered a year-over-year pullback in the share of incentive-driven lease agreements. San Jose, Calif., followed (-6.5 percent), alongside Baltimore (-3.6 percent), Minneapolis (-0.9 percent) and Milwaukee (-0.4 percent).
