The U.S. Has Entered Deep Renter’s Market Territory—Here’s What It Means For Investors

“Renters, this is your year,” Zillow senior economist Kara Ng recently told NPR. It’s apparently a good time to be a tenant, as nearly 40% of listings on the market were being offered with a concession from the landlord as of June, according to a recent report from Zillow. However, before landlords wring their hands in despair at the idea of a free month’s rent and lost revenue, it’s worth drilling down into the data—as the numbers can be misleading. According to Zillow’s June rental market analysis, the typical U.S. average rent reached $1,965, a 2.2% increase from a year before. However, with concessions up nearly 5% from the previous year, the cost of getting into an apartment could look good from a tenant’s perspective. For smaller landlords, analyzing which markets are offering the most concessions and why, and where rents are increasing, can help you determine how to price your units and whether to jump aboard the concession cavalcade. A Highly Nuanced Rental Market The cities offering the greatest number of concessions are those where new apartment development has been most robust and supply has increased. Zillow found that 67.1% of listings in Charlotte offered concessions ...