In the unsettled state of the multifamily sector, with some regions struggling with oversupply and others seeing an uptick in demand that is absorbing some of the excess, 2026 is projected to be a year in which the two begin to align, enabling rent growth to struggle out of the 1% rut it has occupied for nearly a year and begin to accelerate.
That is the view of Apartments.com following an analysis of the market. It warned, however, that the acceleration will be gradual, reaching 1.9% at the end of 2026. At the same time, vacancy will remain high, above 10%.
Under these conditions, concessions granted by landlords to attract or retain tenants are expected to continue to play an essential role in the coming year.
In 2021, concessions were granted to some 60% of multifamily units in CBDs, 40% of units in urban areas and about 25% of units in suburbs. By 2025, the gaps were smaller.
“Over 30% of all multifamily units are advertising concessions to attract residents,” the report stated.
“In 2026, expect to see concession use remain above the 30% mark as multifamily properties continue to fight high vacancy.”
However, not all modifications are equally effective. The report found that tenants respond most positively to rent discounts lasting over 12 months (67%) than to free rent for one month (62%) or other incentives. Gift cards or complimentary gifts, such as TVs or iPads, were accepted by just 25%. Membership of a local gym appealed to even fewer – just 17%.
Meanwhile, concessions are likely to remain relevant for the foreseeable future. According to the report, properties in the four and five-star categories, in particular, will intensify their efforts to retain tenants and maintain occupancy.
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