New apartment construction has given renters more choices and negotiating power
The typical U.S. asking rent reached $1,965 in June, a 2.2% increase from a year earlier.
Nearly 40% of rental listings offered a concession, such as free rent, waived fees or complimentary parking.
Renters have the most negotiating power in markets where apartment construction has produced a large supply of available units.
Rents are moving higher again, but renters may be able to offset some of the increase by taking advantage of a growing number of move-in specials.
The typical U.S. asking rent rose to $1,965 in June, up 2.2% from a year earlier, according to Zillows latest rental market report. Rent growth accelerated slightly from May, and monthly increases during April, May and June were all stronger than during the same months in 2025.
At the same time, 39.7% of rental listings on Zillow offered some type of concession in June, up from 35.2% a year earlier.
Concessions can include a free months rent, waived application or move-in fees, free parking or other discounts. Those offers mean the actual cost of renting may be lower than the advertised monthly price.
The payoff from the construction boom is showing up clearly for renters right now, Zillow senior economist Orphe Divounguy said in the companys July rental report.
New construction gives renters leverage
Developers added a large number of apartments in recent years, providing renters with more choices and forcing some property managers to compete for tenants.
That trend is especially noticeable in Sun Belt markets. Charlotte had the nations highest share of listings offering concessions, at 67.1%. Denver followed at 65.9%, with Dallas at 64.6% and Austin at 64.3%.
Rents were also falling in several heavily developed markets. Over the previous year, typical rents declined 1.8% in San Antonio to $1,416, 1.7% in Austin to $1,653 and 1.3% in Denver to $1,930.
In contrast, renters have less negotiating power in cities where housing supplies remain tight. San Francisco rents increased 8.2% over the year to $3,301, while only 24.9% of listings offered concessions.
San Jose rents rose 6.2% to $3,729, and Chicago rents increased 5.2% to $2,275.
Houses are getting more expensive, faster
Consumers renting single-family homes are seeing larger price increases than apartment renters.
Single-family rents rose 3% from a year earlier to $2,320, about twice the 1.5% increase for multifamily properties. The typical multifamily rent was $1,789.
The difference is largely tied to supply. Builders added far more apartment units than single-family rentals, giving apartment hunters more options and restraining price growth.
Zillow forecasts single-family rents will rise 3.1% during 2026, while multifamily rents will increase 2%.
However, the supply advantage may begin to fade. Apartment completions slowed during the second quarter while demand remained steady. As renters absorb the available units, Zillow said rental markets could gradually tighten and concessions could become less common.
Renters shopping now may want to compare the total cost over the entire lease rather than focusing only on the advertised monthly rent. They can also ask competing properties to match incentives, negotiate fees or parking costs, and determine whether the rent will increase sharply once an introductory concession expires.
Posted: 2026-07-28 11:08:32
















