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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%.

Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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