Deals Are Drying Up for Renters

Fewer rental listings are offering concessions as we enter peak season for rental demand.

The busiest season for renting is here, and the deals are drying up. After a winter that saw record numbers of rental listings on Zillow offering a concession — a sweetener such as free weeks of rent or free parking offered as an incentive to sign a lease — renters are now seeing fewer of those during what is historically the busiest time of year for the rental market. 

In May, 35% of rental listings on Zillow offered a concession, same as in April. That is a record high for May in Zillow data going back to 2018, but down from 41% in January and February.

It is common for concessions to fade during this time of year, when active renters and new rental listings on Zillow usually peak. With more renters searching, property managers have less need to offer incentives to fill vacancies.

Last year broke that pattern. Amid the biggest apartment construction boom in 50 years, new options for renters pushed property managers to compete harder. This year, with fewer apartments under construction, the rental market has returned to its usual seasonal pattern. 

Concessions remain common in a few hot spots. Renters will find them most often in Austin (63%), Charlotte (62%), Denver (61%) and Raleigh (61%) metro areas. Denver (up 14 percentage points), Austin (up 13 percentage points) and Raleigh (up 13 percentage points) also saw the biggest year-over-year jumps in concessions. 

On the other end of the spectrum, renters in Buffalo (9%), New Orleans (11%) and Providence (11%) are finding the smallest share of rentals offering concessions. Since last May, Minneapolis (down 11 percentage points), Birmingham (down 7 percentage points) and San Francisco (down 6 percentage points) saw the biggest drops.