As the rental market continues to cool, property managers are increasingly offering concessions to attract renters, according to new data from Zillow. The post-pandemic upswing in housing construction has given renters more options, leading to a slowdown in rent growth and a rise in special offers.

In June 2024, the number of multifamily housing projects completed reached a 50-year high, with nearly 60,000 new units becoming available. This influx of new housing offers much-needed relief to renters who have faced steep rent increases in recent years. As a result, the share of rental listings with concessions – such as rent-free weeks or free parking – rose to 33.2% in July, up from 33% in June and 25.4% a year earlier.

“Builders have built an incredible number of apartments in response to rising rents during the pandemic, and renters are now reaping the benefits,” said Skylar Olsen, chief economist at Zillow. “Now is a great time for renters to snap up a bargain, with more new apartments coming onto the market than at any time in decades. While rents are still rising, they are a far cry from the steep increases seen two or three years ago.”

While rents have continued to rise — up 5.1% since July 2022 — the pace of growth has slowed significantly and is approaching historical norms. This is a welcome change for renters who have endured a staggering 22.3% increase in rent over the past two years. Monthly rent growth for multifamily properties slowed for the second month in a row in July, reflecting a general trend of market stabilization.

Concessions have become more common in recent months. The share of listings offering at least one concession rose to 33.6% in April—the highest level in nearly two and a half years. This trend is particularly pronounced in six major metropolitan areas, where more than half of rental listings include a concession. These cities include Raleigh (53.3%), Charlotte (53%), Atlanta (52.2%), Salt Lake City (50.9%), Nashville (50.8%), and Austin (50.5%).

However, not all markets are experiencing the same slowdown. In San Jose, Baltimore, Milwaukee and Pittsburgh, the share of listings with concessions has declined year over year, indicating a more competitive rental market in those areas.

The slowdown in the rental market is partly due to the boom in multifamily construction, which has rebalanced supply and demand. Despite continued construction activity, the number of new units built has declined over the past eight months, suggesting that the boom may have peaked.

The rental vacancy rate, another key indicator of the market situation, remained stable at 6.6% in the second quarter of 2024, remaining at this level for the fourth consecutive quarter. This is the highest vacancy rate since winter 2021 and signals a shift towards a more balanced rental market.

As the rental landscape evolves, platforms like Zillow are playing a critical role in connecting renters with available deals. The platform’s Special Offers tab makes it easy for renters to find properties with special offers, allowing them to make more informed decisions about where to live.

For renters, the current market environment presents a unique opportunity to get better deals and take advantage of the increasing availability of new apartments. As more units come online and concessions become more common, renters have more negotiating power than they have had in years.

Click here to see a complete list of statistics on the largest metropolitan areas.