SAN FRANCISCO, Nov. 8, 2018 /PRNewswire/ -- Across the United States, the number of rental listings advertising concessions – move-in specials such as rent discounts, gift cards and free streaming services – is greater now than it was a year ago, according to a new HotPads® analysis.
Nationwide, the number of rental listings on HotPads mentioning a concession has increased 15.8 percent over the past year, and rent discounts are the most common type of concession. Still, concessions are relatively rare – renters can expect to see a concession advertised in about 1 in 100 rental listings on HotPads.
In Chicago, Miami and Atlanta, the number of rental listings mentioning a move-in special has more than doubled in the past year. Annual rent growth has remained flat or slowed in each of these markets since September 2017, and each of these metro areas has ramped up building for new rental units in the past few years.
Move-in specials are growing the most at the high end of the rental market. The number of high-end rental listings mentioning a concession has risen nearly 20 percent in the past year, compared to a 7.5 percent annual increase in concessions among the most affordable listingsi. Nationally, renters can expect to see concessions mentioned in about 1 in 75 high-end rental listings on HotPads.
Annual rent growth is slowing nationwide, due in part to increased construction and slower demand. These same factors can lead to a rise in concessions, as landlords and property managers may offer move-in specials to catch renters' attention in a slowing market.
"Changes in the market are adding up to create a more favorable climate for renters," said Joshua Clark, economist at HotPads. "Slowing rent growth eases pressure on renters' wallets, new construction gives renters more options and the rise in move-in specials indicates that supply is getting closer to meeting demand. Renters looking to move right now have advantages that they haven't had in years, but the opportunity to benefit from this market may be short-lived. Rising interest rates coupled with increasing home prices could spur demand for rentals over the next year, ultimately making the market more competitive again."
Rental listings in Milwaukee and Portland mention concessions the most. Renters in the Milwaukee and Portland metro areas can expect to see rental concessions in about 1 in every 50 rental listings – or about twice as often as the national average.
In some markets, such as Washington, D.C., and San Antonio, demand is outpacing rapid gains in supply, coinciding with a decrease in the number of move-in specials on the market. Despite this decline, renters in Washington, D.C. and San Antonio can still expect to see rental concessions mentioned in about 1 in every 100 rental listings, on par with the national average.
Renters seeking a deal on their next home or apartment can use HotPads' search filters to help them capitalize on the rise in concessions. HotPads' search filters include an option that allows renters to limit their search to only include properties with listing promos. For more information, visit HotPads.com.
Change in Rental Listings Advertising Concessions, YoY
Percentage of Rental Listings Advertising a Concession
Median Rent YoY
New York, NY
Los Angeles, CA
San Francisco, CA
San Diego, CA
San Antonio, TX
Kansas City, MO
Virginia Beach, VA
HotPads is an efficient rental search platform for urban areas across the United States, with features designed for competitive markets such as map-based search, real-time notifications and detailed information on landlords and property managers that help renters spend less time searching and more time feeling excited about their next home.
Launched in 2005, HotPads is based in San Francisco and is owned and operated by Zillow Group, Inc. (NASDAQ:Z and ZG).
HotPads is a registered trademark of Zillow, Inc.
HotPads defines high-end rental listings as those priced in the most expensive third of the rental market, and the most affordable listings as those priced in the least expensive third of the rental market.
SOURCE Hotpads, Inc.