More property managers are offering concessions to attract tenants.
In July, 33.2% of rental listings on Zillow included perks like free parking or weeks of free rent, up from 25.4% last year and 19.4% two years ago.
This trend is especially strong in six major metro areas, where over half of the rental listings feature concessions: Raleigh, NC (53.3%), Charlotte, NC (53%), Atlanta, GA (52.2%), Salt Lake City, UT (50.9%), Nashville, TN (50.8%), and Austin, TX (50.5%).
Given that rent prices in the South are cooling more significantly than in other regions in the US, this could be one way to explain the rise in concessions – when renters can have their pick of affordable rentals, extra incentives may be necessary to attract them.
Zillow is of the camp that thinks this trend suggests renters have the upper hand in today’s market, but other sources point out that the South remains a hotspot for young professionals, driving continued strong rental demand.
Take Austin, for example, where 50.5% of listings offer concessions, meaning half of property managers are confident enough in the rental market not to sweeten the deal.
So are these concessions a sign of property managers panicking over potential vacancies, or are they simply a strategy to outmaneuver competitors? Right now, the jury’s still out.
More amenities headlines
Luxury apartment residents demand more bang for their buck – PayProp blog
Research shows that pet-inclusive homes are an excellent investment – Psychology Today
How the right unit amenities can boost rent – Multifamily Dive
