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

Rhea-AI Summary

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.

News Market Reaction – ZG

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$8.71B Market Cap

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In the May 27 session, ZG gained 0.44%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement underscores that nearly 40% of U.S. rentals on Zillow now advertise concessions, a...

Analysis

This announcement underscores that nearly 40% of U.S. rentals on Zillow now advertise concessions, against a backdrop of a 7.3% rental vacancy rate and typical U.S. rent of $1,930. It continues Zillow’s pattern of using proprietary data to highlight structural shifts in housing. Investors may focus on how renter leverage, regional differences in concessions, and evolving consumer expectations for transparency could influence engagement and monetization across Zillow’s rentals platform.

Key Figures

Listings with concessions: 39.8% YoY concession change: 5 percentage points Denver concessions: 68.3% +5 more

8 metrics

Listings with concessions 39.8% Share of U.S. Zillow rentals offering concessions this spring

YoY concession change 5 percentage points Increase in U.S. listings offering concessions vs. prior year

Denver concessions 68.3% Share of Denver rental listings on Zillow with concessions

National vacancy rate 7.3% U.S. rental vacancy rate vs. 5.6% in 2021

Typical U.S. rent $1,930 Zillow Observed Rent Index (ZORI), United States

Income to afford U.S. rent $77,186 Income needed to afford typical U.S. rent

New York typical rent $3,406 ZORI, New York, NY

Dallas concessions share 64.2% Share of Dallas listings on Zillow offering concessions

Historical Context

5 past events · Latest: May 21 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 21	Housing market report	Positive	+0.9%	Report on faster home sales rebound where inventory has surged.
May 18	Rental market ranking	Positive	-1.2%	Providence named hottest rental market ahead of major metros.
May 15	Seller survey insights	Positive	+0.5%	Survey shows sellers prefer widest online exposure; product highlighted.
May 14	Dual agency research	Negative	-2.6%	Research quantifies seller costs from dual agency and off-MLS sales.
May 06	Q1 2026 earnings	Positive	-1.8%	Reported revenue growth, segment detail, margins 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 on housing and rentals has typically led to modest single-day moves, with both positive and negative reactions and no consistent pattern of strong follow-through.

Recent Company History

Over the past month, Zillow has released several housing and rental market analyses and its Q1 2026 earnings. Recent pieces covered a rebound in home sales where inventory recovered, rental strength in Providence, and seller preferences around listing exposure and dual-agency costs. Earnings highlighted revenue growth and segment performance. Price reactions to these announcements ranged from about -2.6% to +0.9%, suggesting news-driven moves have been modest and mixed.

Key Terms

concessions, rental vacancy rate, zillow observed rent index (zori)

3 terms

concessions financial

"concessions — incentives such as free rent, waived fees and discounted move-in costs"

Concessions are deliberate incentives or compromises offered by a seller, issuer, or underwriter—such as price discounts, extra shares, fee reductions, or other sweeteners—to make an investment or transaction more attractive. Like a store marking down an item to entice buyers, concessions matter to investors because they lower expected returns or signal weaker demand, changing the true cost, value and risk of the deal.

rental vacancy rate financial

"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) technical

"Typical Rent, Zillow Observed Rent Index (ZORI)"

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.

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.