Landlords Are Offering More Concessions To Attract Tenants, Zillow Says
Concessions offered to tenants in the U.S. are now at the highest in more than two years despite an increase in rents, according to a study by real-estate website Zillow.
Landlords and property managers are offering at least one concession in 30% of listings on Zillow, the company said. A year ago, that number was 24%.
Concessions include free months of rent or parking space. It's a way to attract tenants without having to lower the rent. At the national level, rents increased 3.2% in October from a year earlier, Zillow said.
The report says that rental concessions increased in 43 of the 50 biggest metro areas in the U.S. They are more common now in areas where multi-family construction is accelerating, such as Salt Lake City, San Jose and Washington, D.C.
The fewest concessions are seen in New Orleans, Providence, Miami and New York, Zillow said.
The study mentions that the nationwide rental vacancy rate rose to 6.6% in the latest reading from the U.S. Census Bureau, which benefits tenants.
"A higher vacancy rate means more options for renters in the market for a new place, and more reason for landlords to offer concessions to entice renters to look at their listing," Zillow says in the report signed by economist Anushna Prakash.
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