Why Nearly 40% of Landlords Are Offering Rental Concessions in 2026

Renters across the U.S. are seeing more incentives as landlords offer concessions like free rent and waived fees to fill vacancies in a softening rental market. According to Zillow's March 2026 data, rent growth has slowed to its weakest pace since 2020, with average asking rents rising just 1.8% year over year to about $1,910.

This shift matters because the increase in rental supply is finally catching up with demand, easing affordability pressures for many households. Nearly 40% of rental listings now include concessions, signaling a more competitive market where renters have greater leverage.

The Supply Surge Behind Slowing Rent Growth

Rental price growth is cooling as a wave of new apartment construction floods the market. In 2024, 608,000 multifamily units were completed—the highest annual total since 1986—according to the National Association of Home Builders. This influx is expanding options for renters and increasing competition among landlords.

Vacancy rates have risen from the pandemic-era lows, further pressuring rents. Additionally, some homeowners are renting out properties instead of selling, holding onto low mortgage rates locked in around 3% in 2021, compared to current rates near 6.2%. This added supply is helping to slow rent increases.

"What we're seeing right now is the result of a supply wave finally catching up to demand ... creating more options for renters and forcing landlords to be more competitive."—Senada Adžem, luxury real estate agent at Douglas Elliman

Concessions on the Rise: What Renters Can Expect

Nearly 40% of rental listings now offer concessions to attract tenants. Common deals include a free month's rent on a 12-month lease, waived application or move-in fees, and perks like free parking. Renters are encouraged to negotiate for these benefits, including asking for upfront concessions or flexible move-in dates.

"The most common ones are a free month on a 12-month lease, plus waived application or move-in fees. Renters should feel comfortable negotiating for those concessions,"—Erik Leland, real estate broker at Realty First in Oregon

Not All Markets Are Easing

While many cities are seeing relief, some major markets remain tight. New York City rents rose 4.2% year over year, with Manhattan experiencing severe inventory shortages and intense competition among renters. San Francisco also continues to face tight conditions, making concessions less common there.

"Inventory is abysmal, and open houses are a chaotic mess, with at least 20 people vying for the same apartment,"—Abigail Godfrey, New York-based real estate agent at Coldwell Banker Warburg

What Lies Ahead for Renters and Landlords

Building permits have declined from their 2022 peak, signaling fewer new apartments may come online in the near future. This could tighten supply again within the next 12 to 24 months, potentially reducing concessions and increasing rents once more.

For renters in markets with abundant new inventory, now is an opportune time to secure favorable lease terms before the pipeline slows. Landlords are currently motivated to offer deals, but that window may narrow as construction activity tapers.

"If you are in a market with a lot of new inventory, there is an opportunity to lock in favorable terms now before the pipeline tightens again over the next 12 to 24 months."—Senada Adžem, Douglas Elliman