Concessions are doing what they typically do late in a supply-heavy cycle: quietly widening the gap between asking rents and what renters actually pay.
In March, landlords leaned slightly harder on incentives to keep units occupied, pushing concession use to its highest level in more than a decade. The national average among stabilized units edged up two basis points to 16.9%, according to RealPage, marking a 5.1 percentage point increase from a year earlier and the highest monthly level since mid-2014. Concessions have been climbing steadily since hitting a decade low of 5.5% in 2016, and they now sit at levels not seen since the post–Great Financial Crisis leasing environment.
While usage increased, the size of those concessions held steady. The average discount was unchanged month-over-month but rose roughly two percentage points year-over-year to 10.8%. That translates to nearly six weeks free on a typical 12-month lease—enough to materially reduce effective rents even as nominal rents appear more stable.
The combination of rising usage and elevated discounting illustrates a market where operators are prioritizing occupancy over rate growth. Rather than cutting headline rents, which can be difficult to reverse, landlords are using concessions as a more flexible tool to compete, particularly in markets still absorbing a wave of new supply.
That dynamic is most visible in the Sun Belt and Mountain West, where construction pipelines have been strongest. Austin again led the nation with 36.2% of units offering concessions, alongside an average discount rate of 14.8%. Denver and San Antonio followed closely, both with usage above one-third of units. Texas alone accounted for four of the top 10 markets, reflecting how aggressively supply has outpaced demand in several of the state's major metros.
Florida markets also featured prominently, with Jacksonville and Tampa newly entering the top tier. Their inclusion signals that concession pressure is broadening beyond the earliest oversupplied metros into other high-growth regions. At the same time, Charlotte and Nashville dropped out of the top 10, suggesting some localized stabilization or slower supply delivery.
Regionally, the data reinforces the same pattern. Concession use rose month-over-month in the South, reaching 21.2% and in the West at 16.4%, both regions where development has been most concentrated. The Northeast and Midwest remain less pressured, with usage at 12.6% and 10.2%, respectively. The Midwest even saw a slight decline from February, indicating more balanced supply-demand conditions.
Property class trends add another layer to the story. Class C assets posted the highest concession usage at 21.5%, a sign that affordability constraints are still weighing on lower-income renters. Class B followed at 15%, while Class A came in slightly lower at 14.5% but recorded the largest month-over-month increase. That uptick in top-tier assets suggests that even newer, amenity-rich properties are feeling competitive pressure, particularly in lease-ups or recently delivered buildings.
Discount levels were relatively consistent across asset classes, with Class A at 11.1%, Class B at 10.6% and Class C at 10.8%. The narrow spread indicates that while usage varies by segment, the depth of concessions is broadly similar—another signal that this is a market-wide adjustment rather than an isolated weakness.
Taken together, the data points to a leasing environment where supply remains the dominant force. Until new deliveries slow or absorption meaningfully accelerates, concessions are likely to remain a primary lever for landlords trying to maintain occupancy without resetting rents lower.
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