Free rent and free parking: Landlords are throwing in sweeteners

Renters are gaining the upper hand in the balance of power with landlords. Apartment units are staying on the market for longer. Vacancy rates are rising, and rental growth is slowing. Landlords are being forced to offer incentives like free parking and free weeks of rent to attract tenants. The share of rental listings offering concessions has increased, particularly in metro areas including Raleigh, Charlotte, Atlanta, Salt Lake City, Nashville, and Austin. Despite these incentives, the cost of housing remains high. Shelter prices have increased by 5.1% from last year. The building boom for apartments has contributed to the shift in favor of renters. The rental vacancy rate is currently at its highest level since 2021. Falling mortgage rates may also work to the benefit of tenants by enticing some renters into the housing market.