Average discount levels for apartments showed the first sign of easing in two years in May, even as operators continued to rely heavily on concessions to support leasing. The average U.S. discount decreased 0.1 point on a monthly basis to 10.9% in May 2026, a modest move but the first monthly decline in average concession amounts since March 2024.
Still, May's 10.9% reading was up 1.7 points year over year and translates into nearly six weeks free on a 12‑month lease. At the same time, U.S. apartment concession use was unchanged in May according to data from RealPage Market Analytics, with average concession usage among stabilized units holding at 16.9%, a level that is up 4 points from a year earlier and remains near the highest average since mid‑2014.
Overall, U.S. concessions have generally trended upward since reaching a decade low of 5.5% in mid‑2016 and remain near their highest level since the post–Great Financial Crisis period in 2010.
Class Performance Diverges
Across product classes, Class C units continued to utilize concessions at markedly higher rates, averaging 21.8% in May, while Class A (13.7%) and Class B (15.4%) usage landed closer to one another. Concession usage in Class B and Class C product remained relatively unchanged on a monthly basis, while Class A units saw a 0.3‑point decline.
Average discounts remained consistent in May. Class A held the highest level at 11.2%, hovering near that 11% mark for the eighth consecutive month. Discounts in Class B (10.6%) and Class C (11%) also aligned closely with recent averages. The data suggest Class C operators are still the most reliant on concessions to drive leases, even though the deepest discounts are now concentrated in the top of the market.
Regional Patterns Take Shape
Across the four national regions, monthly change in concession usage was mixed, with the South and Midwest posting slight increases and the coastal regions — West and Northeast — seeing modest declines. Overall concession use was once again led by the high‑supply South at 22.1%, up 0.3 points month over month.
Concession utilization in the Midwest increased 0.4 points on a monthly basis, yet remained the lowest regional average at 10.6%. Conversely, usage in the West region dipped 0.2 percentage points to 15.7%, while the Northeast posted the deepest decline, down 0.7 percentage points to 11% in May.
Average discount rates varied from roughly 8% to 9% in the Midwest and Northeast, while both the South and West regions posted average discounts near 11.5%. That spread highlights how supply pressure in Sun Belt and Western markets is still feeding aggressive incentives, even as some coastal operators begin to pull back slightly.
Top Concession Markets Shuffle
Austin, Denver and San Antonio remained in the top three spots for concession usage in May, with each market posting discounts among roughly one‑third of all stabilized units. Major Texas markets once again dominated the list, with four appearing in May. The top 10 markets saw two newcomers appear since the prior month — Fort Worth and Charlotte — while Jacksonville and Dallas dropped off.
Discount depths ranged from roughly 10% to 15.5% across the top 10, with Austin, Denver and Nashville posting the highest average concession rates on the list, ranging from 14.5% to 15.5% in May. Those levels indicate that, despite a slight national easing in average discount size, key high‑growth metros are still relying on meaningful rent breaks to compete for residents.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.