One-third of property managers are offering concessions as rental market cools
Zillow's latest data reveals a cooling rental market, with 33.2% of rental listings offering concessions in July 2024, up from 25.4% a year earlier. This trend is driven by an apartment construction boom, with June seeing the highest number of completed multifamily units in 50 years. Rent growth has slowed to 5.1% year-over-year, a significant decrease from the 22.3% increase in the previous two years.
Six major metro areas, including Raleigh, Charlotte, and Atlanta, have over 50% of rentals offering concessions. The rental vacancy rate remains at 6.6%, the highest since winter 2021. While the supply boom continues, the number of units under construction has decreased for eight consecutive months, suggesting a potential peak in the market.
I dati più recenti di Zillow rivelano un raffreddamento del mercato degli affitti, con il 33,2% degli annunci di affitto che offrono concessioni a luglio 2024, in aumento rispetto al 25,4% dell'anno precedente. Questa tendenza è alimentata da un boom nella costruzione di appartamenti, con giugno che ha registrato il numero più alto di unità multifamiliari completate negli ultimi 50 anni. La crescita degli affitti è rallentata al 5,1% anno su anno, una significativa diminuzione rispetto all'aumento del 22,3% degli ultimi due anni.
Sei importanti aree metropolitane, tra cui Raleigh, Charlotte e Atlanta, hanno oltre il 50% delle locazioni che offrono concessioni. Il tasso di vacanza degli affitti rimane al 6,6%, il più alto dalla fine del 2021. Mentre il boom dell'offerta continua, il numero di unità in costruzione è diminuito per otto mesi consecutivi, suggerendo un possibile picco nel mercato.
Los últimos datos de Zillow revelan un enfriamiento del mercado de alquileres, con el 33,2% de los anuncios de alquiler que ofrecen concesiones en julio de 2024, en comparación con el 25,4% del año anterior. Esta tendencia está impulsada por un boom en la construcción de apartamentos, siendo junio el mes con el mayor número de unidades multifamiliares completadas en 50 años. El crecimiento de los alquileres se ha desacelerado al 5,1% anual, una disminución significativa respecto al aumento del 22,3% en los dos años anteriores.
Seis áreas metropolitanas importantes, incluidas Raleigh, Charlotte y Atlanta, tienen más del 50% de sus alquileres ofreciendo concesiones. La tasa de vacantes en alquiler se mantiene en el 6,6%, la más alta desde el invierno de 2021. Mientras el auge de la oferta continúa, el número de unidades en construcción ha disminuido durante ocho meses consecutivos, lo que sugiere un posible pico en el mercado.
Zillow의 최신 데이터는 임대 시장의 냉각을 보여줍니다. 2024년 7월에 임대 목록의 33.2%가 양보를 제공하며, 이는 작년 25.4%에서 증가한 수치입니다. 이러한 추세는 아파트 건설 붐에 의해 촉진되었으며, 6월에는 50년 만에 가장 많은 다가구 유닛이 완공되었습니다. 임대 증가율은 전년 대비 5.1%로 둔화되어, 이전 2년 동안의 22.3% 증가에서 큰 폭으로 감소했습니다.
롤리, 샬럿, 애틀랜타 등 6개의 주요 대도시는 50% 이상의 임대가 양보를 하고 있습니다. 임대 공실률은 6.6%로, 2021년 겨울 이후 가장 높은 수치입니다. 공급 붐이 계속되는 가운데, 공사 중인 유닛 수는 8개월 연속으로 감소하여 시장의 잠재적 정점을 시사하고 있습니다.
Les dernières données de Zillow révèlent un refroidissement du marché locatif, avec 33,2 % des annonces de location offrant des concessions en juillet 2024, contre 25,4 % un an auparavant. Cette tendance est alimentée par un boom de la construction d'appartements, juin ayant enregistré le nombre le plus élevé d'unités multifamiliales achevées en 50 ans. La croissance des loyers a ralenti à 5,1 % d'une année sur l'autre, une diminution significative par rapport à l'augmentation de 22,3 % au cours des deux années précédentes.
Six grandes zones métropolitaines, y compris Raleigh, Charlotte et Atlanta, ont plus de 50 % des locations offrant des concessions. Le taux de vacance locative reste à 6,6 %, le plus élevé depuis l'hiver 2021. Bien que le boom de l'offre se poursuive, le nombre d'unités en construction a diminué pendant huit mois consécutifs, suggérant un éventuel pic sur le marché.
Die neuesten Daten von Zillow zeigen eine Abkühlung des Mietmarktes mit 33,2% der Mietanzeigen, die im Juli 2024 Vergünstigungen anbieten, ein Anstieg gegenüber 25,4% im Vorjahr. Dieser Trend wird durch einen Boom im Wohnungsbau getrieben, wobei der Juni die höchste Anzahl an abgeschlossenen Mehrfamilienhäusern seit 50 Jahren verzeichnete. Das Mietwachstum hat sich auf 5,1% im Jahresvergleich verlangsamt, was einen signifikanten Rückgang gegenüber dem Anstieg von 22,3% in den beiden vorherigen Jahren darstellt.
Sechs wichtige Metropolregionen, darunter Raleigh, Charlotte und Atlanta, haben über 50% der Mietobjekte, die Vergünstigungen anbieten. Die Leerstandsquote bei Mietwohnungen bleibt bei 6,6%, dem höchsten Stand seit dem Winter 2021. Während der Angebotsboom weiterhin besteht, ist die Anzahl der im Bau befindlichen Einheiten in den letzten acht Monaten konstant gesunken, was auf einen möglichen Höhepunkt des Marktes hindeutet.
- 33.2% of rental listings are offering concessions, up from 25.4% a year ago
- Multifamily rent growth slowed to 5.1% year-over-year, down from 22.3% in the previous two years
- Record-breaking 60,000 multifamily units completed in June, highest in 50 years
- Rental vacancy rate steady at 6.6%, indicating more options for renters
- Multifamily rents still rising, albeit at a slower pace
- Number of multifamily units under construction has decreased for eight consecutive months
- Some metro areas (San Jose, Baltimore, Milwaukee, Pittsburgh) show a decrease in concessions compared to last year
Insights
The rental market is showing signs of cooling, driven by a significant increase in multifamily unit completions. With 33.2% of rental listings offering concessions, up from 25.4% a year ago, we're seeing a shift in market dynamics favoring renters. The 5.1% year-over-year rent growth, while still positive, marks a notable deceleration from the 22.3% increase observed in the previous two years.
The 6.6% rental vacancy rate, steady for four quarters, indicates a market approaching equilibrium. This trend, coupled with the record 60,000 multifamily units completed in June, suggests we're entering a period of increased supply and potentially slower rent growth. Investors should monitor markets like Raleigh, Charlotte and Atlanta, where over 50% of listings offer concessions, as these areas may experience more significant pricing pressures.
The shift in the rental market reflects broader economic trends. The slowing job market and lower mortgage rates mentioned could further impact rental demand. This cooling effect is not uniform across all markets, with 4 major metros showing decreased concessions, indicating localized competitive pressures.
The multifamily construction boom is a key factor to watch. While completions are at a 50-year high, the number of units under construction has fallen for 8 consecutive months. This suggests the supply surge may be peaking, potentially leading to a more balanced market in the medium term. Investors should consider the long-term implications of this supply increase on rental yields and property values, especially in markets with high concession rates.
From a financial perspective, the increased prevalence of concessions could impact the profitability of rental properties. While headline rents are still growing at 5.1% annually, effective rents (after concessions) may be growing more slowly. This could squeeze margins for property owners and investors, particularly in markets with high concession rates.
The construction boom, while beneficial for renters, may present challenges for existing property owners. Increased competition could lead to higher vacancy rates and pressure on rents. However, the slowing pace of new construction starts suggests this pressure may ease in the coming years. Investors should carefully evaluate local market conditions and the potential for oversupply when considering multifamily investments.
An apartment construction boom is giving renters more options and better deals
- More new multifamily units were completed in June than in any month in the past 50 years.
- More than half of rentals are offering a concession in
Raleigh ,Charlotte ,Atlanta ,Salt Lake City ,Nashville andAustin . - The rental vacancy rate held steady at
6.6% . The last time a higher share of rentals sat empty was winter 2021.
The share of rental listings on Zillow offering a concession — a sweetener such as free weeks of rent or free parking offered as an incentive to rent — climbed to
"Builders have stepped up and built an incredible number of homes in response to soaring rents during the pandemic, and renters are now seeing the benefits," said Zillow Chief Economist Skylar Olsen. "Now is a great time for renters to find a deal, with more new apartments hitting the market than at any time in the past several decades. Rents are still growing, but it's a far cry from the steep rent hikes of two or three years ago, and renters will find sweeteners being offered by more than half of rentals in some places. A slowing job market and lower mortgage rates could mean falling rents if the current trends hold."
The past two years have been fairly friendly for apartment renters. While multifamily rents are still rising, up
Renters have enjoyed concessions more often during the past two years, as well. The share of rental listings on Zillow offering at least one concession was at a 29-month low in July 2022 at
More than half of rental listings on Zillow are offering a concession in six major metro areas:
One reason for the rental market cooldown is a multifamily construction frenzy that is opening up new options for renters and rebalancing the supply and demand seesaw. Almost 60,000 multifamily units were completed nationwide in June — the latest data available — which is more than in any month in half a century.
The supply boom still has legs, but it may have hit its peak. While there are still a huge number of multifamily units under construction — before this recent boom, 1973 was the last time this many units were being built —that number has fallen in each of the past eight months.
The rental vacancy rate, another measure of market tightness, held steady at
Zillow provides a user-friendly platform for housing providers to share concessions information with prospective renters. Property managers can easily list concessions for their properties, and renters can find all available offers under the "Special Offers" tab on participating buildings' detail pages, enabling them to make well-informed housing decisions.
Metropolitan | Typical Rent, | Multifamily | Multifamily | Listings With a | Concessions | Concessions |
0.4 % | 2.6 % | 33.2 % | 0.2 ppts | 7.8 ppts | ||
0.6 % | 3.4 % | 15.9 % | 0.4 ppts | 3.9 ppts | ||
0.5 % | 2.0 % | 30.2 % | 1.7 ppts | 2.8 ppts | ||
0.4 % | 4.4 % | 24.9 % | 2.5 ppts | 8.1 ppts | ||
0.2 % | -1.4 % | 47.6 % | -1.1 ppts | 10.3 ppts | ||
0.1 % | 0.8 % | 35.4 % | -0.6 ppts | 5.7 ppts | ||
0.7 % | 4.4 % | 47.4 % | 0.6 ppts | 2.5 ppts | ||
0.4 % | 3.2 % | 30.2 % | 1.7 ppts | 8.3 ppts | ||
0.1 % | 2.6 % | 17.4 % | -0.1 ppts | 4.3 ppts | ||
0.0 % | -1.4 % | 52.2 % | -0.2 ppts | 14.5 ppts | ||
0.2 % | 4.2 % | 21.7 % | 2 ppts | 7.1 ppts | ||
-0.2 % | -0.3 % | 50.1 % | 0.3 ppts | 9.6 ppts | ||
0.2 % | 0.5 % | 38.6 % | -0.4 ppts | 0.7 ppts | ||
0.2 % | 2.2 % | 19.1 % | -2.3 ppts | 1.7 ppts | ||
0.6 % | 4.8 % | 23.3 % | 2.5 ppts | 1.5 ppts | ||
0.5 % | 3.1 % | 44.2 % | 1 ppts | 12.1 ppts | ||
0.1 % | 2.3 % | 49.8 % | -0.2 ppts | 10.9 ppts | ||
0.4 % | 0.1 % | 34.3 % | 1.4 ppts | 12.4 ppts | ||
0.3 % | 0.3 % | 42.0 % | 1 ppts | 13.9 ppts | ||
0.3 % | 1.3 % | 48.9 % | 0.8 ppts | 14.1 ppts | ||
0.5 % | 2.7 % | 32.7 % | -2.2 ppts | -5.6 ppts | ||
0.9 % | 3.9 % | 21.6 % | -3.1 ppts | 3.8 ppts | ||
0.2 % | -0.3 % | 38.7 % | 0.1 ppts | 8.6 ppts | ||
0.5 % | -0.8 % | 53.1 % | -2 ppts | 15.7 ppts | ||
-0.1 % | -1.1 % | 46.4 % | -2.4 ppts | 12.3 ppts | ||
0.6 % | 2.9 % | 43.5 % | 3.1 ppts | 6.3 ppts | ||
0.0 % | 2.5 % | 29.3 % | 1.8 ppts | 5.6 ppts | ||
0.6 % | 3.8 % | 21.8 % | -0.5 ppts | -0.2 ppts | ||
0.3 % | 4.0 % | 20.0 % | 1.6 ppts | 5.7 ppts | ||
-0.3 % | -4.5 % | 50.5 % | 0.9 ppts | 14.1 ppts | ||
-0.02 % | 2.2 % | 39.4 % | -0.1 ppts | 2.5 ppts | ||
0.4 % | 4.9 % | 26.7 % | -2.6 ppts | 7.9 ppts | ||
0.6 % | 3.3 % | 34.4 % | -1.3 ppts | 10.5 ppts | ||
1.0 % | 2.4 % | 33.2 % | 0.6 ppts | 8.8 ppts | ||
0.4 % | 6.5 % | 23.1 % | -0.3 ppts | 4.6 ppts | ||
0.9 % | 2.7 % | 33.6 % | 3.1 ppts | -9.7 ppts | ||
0.2 % | 0.2 % | 50.8 % | 0.5 ppts | 11.1 ppts | ||
0.9 % | 5.0 % | 28.6 % | -1 ppts | 10.7 ppts | ||
0.9 % | 7.0 % | 13.6 % | -1.4 ppts | 6 ppts | ||
-0.1 % | -1.4 % | 45.6 % | -0.2 ppts | 17.8 ppts | ||
0.5 % | 4.8 % | 17.1 % | -1.5 ppts | -1.8 ppts | ||
1.2 % | 3.1 % | 23.8 % | 3.3 ppts | 11.1 ppts | ||
0.3 % | -2.4 % | 53.3 % | 1.8 ppts | 14.7 ppts | ||
0.1 % | 2.8 % | 25.8 % | -0.2 ppts | 9.8 ppts | ||
0.9 % | 5.1 % | 38.5 % | 1.5 ppts | 4.9 ppts | ||
0.2 % | 6.2 % | 30.4 % | 5.3 ppts | 11 ppts | ||
0.2 % | 3.5 % | 10.1 % | -0.7 ppts | 2 ppts | ||
0.3 % | 1.7 % | 50.9 % | -1.7 ppts | 6.7 ppts | ||
0.6 % | 8.3 % | 23.3 % | -0.7 ppts | 9.5 ppts | ||
0.9 % | 5.0 % | N/A | N/A | N/A | ||
0.4 % | -0.7 % | 36.3 % | 7.2 ppts | 12.8 ppts |
*Table ordered by market size |
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FAQ
What percentage of rental listings on Zillow (ZG) are offering concessions in July 2024?
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How many multifamily units were completed in June 2024 according to Zillow's (ZG) report?
