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Zillow: One Third of U.S. Apartment Listings Offer Concessions
Amid cooling growth in apartment rents, more property managers are offering concessions to new tenants, Zillow reported. Nationwide, 33.2% of rental listings on Zillow offered a concession in July, up from 25.4% in the year-ago period.
More than half of rental listings on Zillow are offering a concession in six major metro areas, led by Raleigh, where 53.3% of listings offer a concession. It’s followed by Charlotte (53.1% of listings), Atlanta (52.2%), Salt Lake City (50.9%), Nashville (50.8%) and Austin (50.5%).
Conversely, four major metros have a smaller share of listings with a concession than they did in July 2023, indicating a more competitive rental market in those metros. These include San Jose (-9.7 percentage points), Baltimore (-5.6), Milwaukee (-1.8) and Pittsburgh (-0.2).
“The question as we look ahead is whether the current status quo of slow rent growth and elevated concessions will continue, or whether rents will actually come down,” wrote Zillow chief economist Skylar Olsen. “The recent mortgage rate dip could soften rental demand as more households can afford to buy a home. A labor market slowdown could also contribute to falling rents.”
- ◦Lease
