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It's a renter's market: 2 in 5 listings come with a deal this spring

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Zillow (NASDAQ:Z) reports a record spring for rental concessions, with 39.8% of U.S. listings on its platform offering incentives, up 5 percentage points year over year and more than double pre-pandemic levels. A national vacancy rate of 7.3% and typical rent of $1,930 (income needed $77,186) give renters more leverage, especially in high-construction markets like Denver, Charlotte and Dallas, where over 64% of listings advertise deals.

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News Market Reaction – Z

+0.87%
1 alert
+0.87% Session close to close
$8.59B Market Cap
0.1x Rel. Volume

In the May 27 session, Z gained 0.87%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement details a rental market with concessions on 39.8% of U.S. Zillow listings and a va...
Analysis

This announcement details a rental market with concessions on 39.8% of U.S. Zillow listings and a vacancy rate of 7.3%, pointing to ample supply and stronger renter leverage. It adds to Zillow’s stream of data-driven housing reports, which recently have covered hot rental markets and sales rebounds. Investors may watch how shifting concession patterns by metro, typical rents, and required incomes such as $77,186 nationally evolve over coming quarters.

Key Figures

Listings with concessions: 39.8% Year-over-year change: 5 percentage points Highest concession market: 68.3% +5 more
8 metrics
Listings with concessions 39.8% Share of U.S. Zillow rentals offering concessions this spring
Year-over-year change 5 percentage points Increase in U.S. concession share vs. prior year
Highest concession market 68.3% Denver share of listings with concessions
Lowest concession market 11.1% Buffalo share of listings with concessions
Rental vacancy rate 7.3% National rental vacancy rate cited in report
Income to afford rent $77,186 U.S. income needed to afford typical rent per table
Typical U.S. rent $1,930 Zillow Observed Rent Index (ZORI) for United States
Income for New York rent $136,242 Income needed to afford typical New York, NY rent

Historical Context

5 past events · Latest: May 21 (Positive)
Pattern 5 events
Date Event Sentiment 24h Move Catalyst
May 21 Housing market report Positive +0.8% Report on sales rebound in metros where inventory has surged.
May 18 Rental market ranking Positive -1.3% Zillow names Providence as hottest rental market for summer 2026.
May 15 Seller survey & product Positive +0.8% Survey on seller preferences and promotion of Zillow Preview collaboration.
May 14 Dual agency research Negative -3.0% Research showing sellers lost $1.49B in same-agent deals.
May 06 Q1 2026 earnings Positive -1.9% Revenue and profit growth with segment detail and buybacks.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent Zillow news, mostly data and research releases, has produced mixed reactions: three events aligned with their implied tone, while two (including earnings) saw price moves in the opposite direction.

Recent Company History

Over the past month, Zillow has issued several data-driven reports and earnings. On May 6, Q1 2026 results showed $708M revenue, but shares fell 1.91%. Subsequent research pieces on dual agency costs ($1.49B impact), seller preferences, and housing inventory saw both positive and negative reactions. The latest housing market rebound note on May 21 coincided with a 0.77% gain, underscoring inconsistent market responses to similar informational releases.

Key Terms

rental vacancy rate, zillow observed rent index (zori)
2 terms
rental vacancy rate technical
"pushing the national rental vacancy rate to 7.3% — up from just 5.6% in 2021"
The rental vacancy rate is the share of rental units that are unoccupied and available for rent, expressed as a percentage of the total rental inventory. It matters to investors because rising vacancy rates are like more empty seats in a theater — they indicate weaker demand, pressure landlords to cut rents or offer concessions, and can reduce income and property values, while falling vacancy rates signal tighter supply and potential for higher rental income and stronger asset performance.
zillow observed rent index (zori) financial
"Typical Rent, Zillow Observed Rent Index (ZORI) | Income Needed to Afford Rent"
The Zillow Observed Rent Index (ZORI) is a regularly updated measure of rent changes based on actual rental listings and transactions gathered from a large online housing platform. It shows how asking and achieved rents are rising or falling across cities and regions. Investors use it like a thermometer for the rental market: shifts in ZORI signal potential impacts on property owners’ income, housing-related companies, consumer spending, and inflation expectations.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Rental concessions — move-in incentives and other freebies — hit a record high for this time of year

  • 39.8% of rentals on Zillow offered concessions this spring — up 5 percentage points from a year ago, according to a new Zillow analysis.
  • Incentives are most common in Denver (68.3%), Charlotte (66.6%) and Dallas (64.2%).
  • The share of listings offering concessions has more than doubled since before the pandemic.

SEATTLE, May 27, 2026 /PRNewswire/ -- This spring has something extra for renters: the most deals ever for this time of year. According to Zillow's latest rental report, concessions — incentives such as free rent, waived fees and discounted move-in costs — are showing up on nearly 40% of listings. For renters, that can translate into meaningful savings both upfront and over the course of a lease.

Zillow logo

A year ago, roughly 1 in 3 rental listings offered a concession. Before the pandemic, it was closer to 1 in 6. The shift reflects a market where supply has outpaced demand. Renters now have more options and leverage than they've had in years. In response, property managers are increasingly offering sweeteners to get tenants through the door.

"Renters don't have to settle this spring. With more supply on the market than in decades, there are real choices out there — and real room to negotiate on price, perks and terms," said Zillow® Senior Economist Kara Ng. "Renters are in a position to push for a better deal, and property managers are ready to give them one."

A wave of new apartment construction, particularly across the Sun Belt, has added inventory nationwide, pushing the national rental vacancy rate to 7.3% — up from just 5.6% in 2021, when competition for apartments was at its most intense in years. With more units sitting empty, property managers are trying to keep units filled by offering incentives.

Not coincidentally, the markets with the highest share of concessions are places where apartment construction has boomed in recent years: Denver (68.3%), Charlotte (66.6%), Dallas (64.2%), Austin (63.8%) and Nashville (62.6%). In these cities, property managers are going to great lengths to attract renters.

In Zillow's hottest rental markets, places where competition among renters remains fierce, property managers don't need to offer as many sweeteners to fill units. Concessions are lowest in Buffalo (11.1%), Providence (12.6%), New York (18.4%), New Orleans (19.2%) and Chicago (21.7%).

For renters who land a concession, the savings can add up fast. At a time when you need to earn nearly $77,200 a year to afford the typical U.S. rental, a free month means roughly $1,930 back in your pocket — and some renters are walking away with even more than that. According to Zillow's Consumer Housing Trends Report, about a third of recent renters said the best concession is at least their first month's rent free, meaning thousands in savings. Over the course of a lease, that kind of cushion can meaningfully shift a monthly budget, help build an emergency fund or go toward saving for a down payment.

For property managers, this market rewards transparency and ease. Renters are doing their homework: Nearly 6 in 10 say seeing fees and lease terms upfront is essential, and more than half say a private tour is a must before signing. Listing concessions prominently and enabling Instant Tours are simple steps that can make the difference between a lease signed and a unit left empty.

Metro

Share of Rental
Listings on Zillow
Offering a
Concession

Share of Rental Listings
on Zillow Offering a
Concession, Year-over-
Year Change

Typical Rent,
Zillow Observed
Rent Index (ZORI)

Income
Needed to
Afford Rent

United States

39.8 %

5.0 %

$1,930

$77,186

New York, NY

18.4 %

1.7 %

$3,406

$136,242

Los Angeles, CA

30.9 %

3.9 %

$2,892

$115,663

Chicago, IL

21.7 %

-0.1 %

$2,219

$88,775

Dallas, TX

64.2 %

10.4 %

$1,660

$66,406

Houston, TX

51.8 %

5.5 %

$1,619

$64,769

Washington, DC

57.9 %

6.9 %

$2,375

$94,982

Philadelphia, PA

34.3 %

3.0 %

$1,901

$76,023

Miami, FL

28.9 %

5.4 %

$2,683

$107,317

Atlanta, GA

59.1 %

4.9 %

$1,825

$72,995

Boston, MA

31.1 %

8.2 %

$3,184

$127,355

Phoenix, AZ

59.9 %

8.4 %

$1,741

$69,622

San Francisco, CA

27.1 %

-8.0 %

$3,206

$128,240

Riverside, CA

28.7 %

2.7 %

$2,510

$100,415

Detroit, MI

26.1 %

2.1 %

$1,481

$59,228

Seattle, WA

54.2 %

5.4 %

$2,208

$88,309

Minneapolis, MN

39.1 %

-0.9 %

$1,698

$67,936

San Diego, CA

38.0 %

7.0 %

$2,914

$116,556

Tampa, FL

50.4 %

10.3 %

$1,997

$79,888

Denver, CO

68.3 %

5.8 %

$1,887

$75,482

Baltimore, MD

37.7 %

-3.6 %

$1,894

$75,759

St. Louis, MO

26.8 %

3.9 %

$1,436

$57,444

Orlando, FL

53.4 %

4.7 %

$1,963

$78,509

Charlotte, NC

66.6 %

2.0 %

$1,733

$69,337

San Antonio, TX

55.6 %

4.9 %

$1,398

$55,904

Portland, OR

49.0 %

5.1 %

$1,789

$71,556

Sacramento, CA

31.6 %

4.3 %

$2,258

$90,301

Pittsburgh, PA

27.1 %

5.9 %

$1,507

$60,298

Cincinnati, OH

28.6 %

8.2 %

$1,557

$62,295

Austin, TX

63.8 %

1.0 %

$1,604

$64,144

Las Vegas, NV

53.0 %

10.1 %

$1,734

$69,345

Kansas City, MO

35.3 %

7.3 %

$1,526

$61,035

Columbus, OH

47.1 %

12.6 %

$1,516

$60,623

Indianapolis, IN

48.9 %

12.2 %

$1,517

$60,667

Cleveland, OH

26.3 %

4.2 %

$1,441

$57,628

San Jose, CA

32.5 %

-6.5 %

$3,534

$141,366

Nashville, TN

62.6 %

5.2 %

$1,784

$71,377

Virginia Beach, VA

30.7 %

4.4 %

$1,843

$73,717

Providence, RI

12.6 %

2.3 %

$2,154

$86,177

Jacksonville, FL

48.9 %

1.0 %

$1,692

$67,695

Milwaukee, WI

22.9 %

-0.4 %

$1,540

$61,594

Oklahoma City, OK

30.9 %

6.2 %

$1,392

$55,688

Raleigh, NC

62.9 %

2.9 %

$1,674

$66,973

Memphis, TN

43.0 %

13.1 %

$1,432

$57,281

Richmond, VA

48.0 %

7.9 %

$1,736

$69,448

Louisville, KY

42.5 %

10.0 %

$1,377

$55,098

New Orleans, LA

19.2 %

8.1 %

$1,615

$64,606

Salt Lake City, UT

62.5 %

3.1 %

$1,631

$65,224

Hartford, CT

24.9 %

6.4 %

$1,940

$77,605

Buffalo, NY

11.1 %

2.2 %

$1,417

$56,694

Birmingham, AL

43.7 %

17.7 %

$1,422

$56,867


*Table ordered by market size

About Zillow Group

Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people.

As the most visited real estate app and website in the United States, Zillow connects hundreds of millions of consumers with innovative technology, trusted agents and loan officers, and seamless digital solutions. With industry-leading tools and resources, Zillow supercharges real estate professionals so they can grow their businesses and deliver exceptional client experiences. For renters and housing providers, Zillow offers not only a robust marketplace but a set of end-to-end products and services to streamline applications, leases, payments and more.

Zillow's ecosystem spans the entire home journey — from dreaming and shopping to renting, buying, selling and financing.

Zillow Group's affiliates, subsidiaries and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans®, Zillow Rentals®, Zillow® New Construction, Trulia®, StreetEasy®, Out East®, HotPads®, Follow Up Boss®, ShowingTime®, dotloop® and Zillow® Closing.

All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2026 MFTB Holdco, Inc., a Zillow affiliate.

(ZFIN)

 

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SOURCE Zillow

FAQ

What share of U.S. rentals on Zillow offered concessions in spring 2026 (Z)?

In spring 2026, about 39.8% of U.S. rental listings on Zillow offered concessions. According to Zillow, this is up 5 percentage points year over year and more than double pre-pandemic levels, signaling increased competition among landlords and more leverage for renters.

Which cities have the highest share of rental concessions on Zillow in 2026?

The highest shares of concessions appear in Denver, Charlotte and Dallas on Zillow rentals. According to Zillow, concessions reach 68.3% of listings in Denver, 66.6% in Charlotte and 64.2% in Dallas, reflecting large recent construction and higher vacancy in these markets.

How much income is needed to afford the typical U.S. rent reported by Zillow?

Zillow estimates renters need about $77,186 in annual income to afford the typical U.S. rent. According to Zillow, the Zillow Observed Rent Index shows a typical monthly rent of $1,930, making concessions like a free month’s rent worth roughly $1,930 in upfront savings.

How has the share of rental listings with concessions changed since before the pandemic?

The share of rental listings with concessions has more than doubled compared with pre-pandemic levels. According to Zillow, roughly 1 in 6 listings once offered deals, versus nearly 2 in 5 today, driven by higher vacancy and a wave of new apartment construction.

Which markets show the lowest rental concessions on Zillow despite the 2026 renter’s market?

Buffalo, Providence, New York, New Orleans and Chicago have the lowest concession shares on Zillow. According to Zillow, only 11.1% of listings in Buffalo and 12.6% in Providence include deals, reflecting tighter competition where landlords need fewer incentives to fill units.

What types of rental concessions are most common on Zillow listings in 2026?

Common concessions include free rent, waived fees and discounted move-in costs on Zillow listings. According to Zillow’s Consumer Housing Trends Report, about one-third of recent renters say the best concession is at least one month’s rent free, delivering thousands of dollars in potential savings.