Nearly 40% of U.S. rental listings offered concessions this spring, the highest share recorded for this time of year, as a surge in apartment construction and rising vacancy rates shifted bargaining power toward renters, according to a new Zillow analysis.
The report found that 39.8% of rental listings included incentives such as free rent, waived fees or discounted move-in costs, up from roughly 34.8% a year earlier and more than double the pre-pandemic level.
The increase comes as new apartment deliveries have expanded housing supply across many metropolitan areas, particularly in the Sun Belt, easing rental competition and forcing property owners to offer incentives to attract tenants.
Nationally, the rental vacancy rate has risen to 7.3%, compared with 5.6% in 2021, when apartment demand surged and available units were scarce.
“With more supply on the market than in decades, there are real choices out there — and real room to negotiate on price, perks and terms,” Zillow Senior Economist Kara Ng said.
The most aggressive use of concessions is concentrated in markets that have experienced substantial apartment development in recent years.
Denver led major markets with 68.3% of rental listings offering incentives, followed by Charlotte at 66.6%, Dallas at 64.2%, Austin at 63.8% and Nashville at 62.6%.
In contrast, concessions remained relatively uncommon in markets where rental demand continues to outpace supply. Buffalo recorded the lowest share at 11.1%, followed by Providence at 12.6%, New York at 18.4%, New Orleans at 19.2% and Chicago at 21.7%.
The findings suggest landlords in high-growth markets are increasingly using discounts and incentives instead of cutting advertised rents, allowing them to preserve headline pricing while reducing effective lease costs.
For renters, the savings can be substantial. Zillow estimates that a free month of rent on a typical U.S. rental equates to approximately $1,930 in savings.
The report comes as affordability remains a challenge for many households. Zillow estimates a renter now needs to earn nearly $77,200 annually to afford the typical U.S. rental.
According to Zillow’s Consumer Housing Trends Report, about one-third of recent renters said the most valuable concession they received was at least one month of free rent.
The analysis also found that renters are placing greater emphasis on transparency during the leasing process. Nearly six in 10 renters said upfront disclosure of fees and lease terms is essential, while more than half said a private tour is a prerequisite before signing a lease.
The report suggests that, while rental affordability remains strained, the rapid expansion of apartment supply is creating a more competitive environment among landlords and giving renters greater leverage in lease negotiations than they have had in years.
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