Real estate platform Zillow (Nasdaq: Z, ZG) released its spring rental market analysis today. The data shows that approximately 39.8% of rental listings across the United States are currently offering concessions, setting a new seasonal record and indicating the arrival of a renter's market.
This latest report, based on Zillow's rental data, notes that the prevalence of concessions has increased by 5 percentage points compared to last spring and has more than doubled from pre-pandemic levels. Zillow Senior Economist Kara Ng stated, "Renters don't have to settle this spring. There is more supply on the market than we've seen in decades, giving renters real choices and ample room to negotiate on price, additional concessions, and lease terms."
These concessions are becoming increasingly common, largely due to a surge in apartment construction across the U.S., particularly in the Sun Belt region. A wave of new completions has driven the national rental vacancy rate up from 5.6% in 2021 to 7.3%. Markets with the most widespread concessions are concentrated in areas with booming apartment construction, including Denver (68.3%), Charlotte (66.6%), Dallas (64.2%), Austin (63.8%), and Nashville (62.6%). In contrast, concessions are less common in hot markets where competition among renters remains fierce. The markets with the lowest share of concessions are Buffalo (11.1%), Providence (12.6%), and New York City (18.4%).
For renters, these concessions can translate into significant savings. With the typical national rent at approximately $1,930 per month, a one-month free rent concession equates to a saving of nearly $2,000. Zillow's report also indicates that income growth is now outpacing rent increases, allowing renters to save an additional $2,318 per year on average.
Zillow reported strong financial growth for the first quarter of 2026. Zillow CEO Jeremy Wacksman noted that the company's integrated platform has positioned it to perform well amid transaction trends. Breaking down the business segments, rental revenue for the quarter grew 42% to $183 million, primarily driven by a 57% year-over-year increase in multifamily revenue. By the end of the first quarter, the number of multifamily properties advertising on Zillow reached 76,000, a 38% increase from the prior year.
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