Renters are getting some relief as landlords offer more concessions, such as free rent and fee waivers, to fill rooms in a cooling market.
Rent growth has slowed to its weakest pace since 2020, with asking rents for U.S. apartments and homes at about $1,910, up 1.8% from a year ago, Zillow’s March data shows.
Zillow reports that while rents are still rising, income growth is outpacing the rise. This eased some pressure on affordability, with the median household income spent on rent falling from 29.4% to 26.5% in the year to March.
In many cases, that slowdown comes in the form of concessions. Zillow says nearly 40% of rental properties are currently offering concessions as landlords compete to fill units. These deals often include perks like one month’s free rent, waived application or move-in fees, or free parking.
“What we’re seeing now is a wave of supply finally catching up with demand… creating more options for renters and forcing landlords to be more competitive,” said Senada Adjem, a luxury real estate agent at Douglas Elliman.
Why are rents falling?
Rental price growth has slowed as a wave of new apartments hit the market.
Multifamily construction (mainly apartments) has surged in recent years, with 608,000 units completed in 2024, the highest level since 1986, according to a 2025 analysis of U.S. Census Bureau data by the National Association of Home Builders.
That wave of new supply is still being absorbed by the market, giving renters more options and increasing competition among landlords, according to Zillow. At the same time, rental vacancy rates are rising from the unusually tight levels seen in the post-pandemic period, increasing vacancies and putting pressure on rents.
Some of the supply comes from homeowners choosing to rent rather than sell, forgoing 30 years of low mortgage rates, further increasing competition for traditional rentals, said Kara Ng, senior economist at Zillow. Many homeowners had their interest rates locked in at around 3% in 2021, compared to the current rate of around 6.2%.
“This additional supply is likely contributing to the slowdown in rent growth,” Ng said.
Not all rental markets are experiencing relief
According to Zillow, 30 of the 50 largest metropolitan areas have seen rent relief increases from last year’s levels, but not all cities have received similar relief.
Markets like San Francisco and New York City remain tight, with rents in New York City rising 4.2% year over year, according to Zillow data. In Manhattan, “inventory is terrible, open houses are chaotic, and there are at least 20 people competing for the same apartment,” said Abigail Godfrey, a New York-based real estate agent at Coldwell Banker Warburg.
However, these conditions are exceptions. In much of the United States, increased supply is prompting landlords to offer concessions to attract tenants.
“The most common option is to get one month free on a 12-month lease, plus waived application and move-in fees,” says Eric Leland, a real estate broker with Realty First of Oregon. Renters should feel comfortable negotiating these concessions, such as asking for a free month up front or asking for additional flexibility in timing, he says.
The number of building permits, a measure of future construction, has fallen from a peak in 2022, suggesting fewer new units may come online in the coming years, he said.
“If you are in a market with a lot of new inventory, you have an opportunity to secure favorable terms now before the pipeline tightens again in the next 12 to 24 months,” says Adžem.
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