Class A Apartments in Top Markets Are Leading the Rise in Concessions

Apartment concessions are increasing in the nation’s most expensive markets. The coronavirus pandemic has undoubtedly put pressure on the apartment market, and many metros are seeing an increase in concessions as a result. However, metros with higher rent levels and also more construction are seeing a substantially higher increase in concessions than lower priced metros, according to research from Fannie Mae.

New York currently has the highest concessions in country. This year, concessions in the market have increased from 7.5% at the end of 2019 to 12.6%. San Francisco concessions are trailing New York at 11.3%, while Boston follows at 9.6%. Modestly priced markets, like Orlando and Phoenix, have seen a lower increase in concessions compared to last year and relatively low concessions overall. Orlando concessions increased from 5.3% to 6.6%, and Phoenix concessions have increased from 4.9% to 6.4%.