April 17, 2026

12 Year High In Apartment Concessions

Apartment rent concessions across the United States have reached their highest level in roughly 12 years, highlighting continued weakness in the multifamily rental market.

16.6% of stabilized apartment units were offering concessions in January 2026, up from December and representing the deepest discount environment since the years following the 2008–2009 financial crisis. Average concessions remained at 10.7% of rent, with luxury (Class A) properties continuing to offer the largest discounts, while Class C properties had the highest percentage of units providing incentives. Studio and efficiency apartments performed particularly poorly, with nearly one in five offering concessions averaging 12.1%.

The increase in concessions reflects ongoing challenges in rent growth despite strong housing demand. January 2026 marked the first monthly rent increase in seven months, but rents were still 0.4% lower than a year earlier. Property owners and managers are increasingly using free rent, discounted rent, and other incentives to attract and retain tenants as elevated apartment supply and competitive market conditions limit landlords' ability to raise rents. The data suggests that many markets remain tenant-friendly, with landlords prioritizing occupancy over rental rate growth while waiting for excess supply to be absorbed.

ARTICLE SOURCE : https://american-apartment-owners-association.org/...

" Back