The median U.S. asking rent in August remained near its all-time high, at $2,052, just $2 below the record set a year earlier. Despite this stability in asking rents, some landlords are offering one-time concessions and discounts to attract renters as vacancies increase, Redfin reports.
While rents are not showing significant year-over-year increases seen throughout the past several years, they are no longer skyrocketing due to factors like slowing household formation, economic uncertainty, affordability challenges, and increased rental supply.
“A year ago, you really didn’t see concessions in the market. Fast forward to today, and they are far more common, with landlords offering from one to three months free in an effort to attract new tenants without lowering their asking rents,” said Jon Ziglar, Chief Executive Officer Rent., a Redfin company. “Higher-end properties are beginning to see pressure in certain markets as a significant portion of new units coming online are in the higher end and luxury segment. We are still seeing a lot of competition for more affordable units due to less new supply, as well as increased pressure on consumer wallets limiting the ability to stretch for that higher level experience.”