economy
More apartments, more deals: Why nearly 40% of landlords are offering concessions right now
A surge in new apartments is slowing rent price growth and boosting concessions, but fewer new projects could limit how long that lasts.
TL;DR
- Rent growth has slowed to its weakest pace since 2020, with asking rents up 1.8% year over year.
- Nearly 40% of rental listings now offer concessions as landlords compete to fill units.
- A surge in apartment construction, the highest since 1986, has increased supply and vacancy rates.
- Homeowners with low mortgage rates are choosing to rent, adding to competition for traditional rentals.
- Markets like San Francisco and New York City remain tight, with high rent increases.
- Building permits have declined, suggesting fewer new units will come online in the future, potentially tightening the market again.