Renters are getting a bit of relief as landlords offer more concessions — like free rent or waived fees — to fill units in a cooling market.
Rent growth has slowed to its weakest pace since 2020, according to Zillow data from March, which shows asking rents for U.S. apartments and homes were about $1,910, up 1.8% year over year.
Even though rents are still rising, increases have been outpaced by income growth, Zillow reports. That’s helped ease affordability pressures slightly, with the share of income the median household spends on rent falling from 29.4% to 26.5% for the year ending in March.
In many cases, that slowdown is showing up in the form of concessions: Nearly 40% of rental listings now offer concessions as landlords compete to fill units, according to Zillow. Those deals often include a free month’s rent, waived application or move-in fees, or perks like free parking.
“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,” says Senada Adžem, a luxury real estate agent at Douglas Elliman.
