Rent prices have soared since the pandemic, leaving many Americans unable to afford to keep up with their expenses. According to Zillow, the average cost of rent is $2,100 per month, which is enough to put pressure on household budgets and make it harder to save or pay down debt.
But thanks to a surge of new apartments flooding the market, renters now have a chance to ease the strain on their wallets. Since landlords are more willing to negotiate, renters who speak up may be able to secure rent concessions such as a free month, reduced security deposit, discounted amenities, or free parking.
Key Takeaways
- Renters have more leverage as apartment vacancies rise and landlords offer concessions to fill units.
- Renters may be able to secure perks like lower rent, free rent, or reduced security deposits.
- Asking for concessions during slower leasing periods and lease renewals can improve your chances of success.
Why Renters Have the Upper Hand Right Now
Data from Redfin reveals that many new units have been sitting vacant for months, evidence of a growing mismatch between supply and demand.
During the pandemic, demand was high, resulting in a surge of new construction. Since then, demand has cooled, and more than 140,000 new units have become available. The problem for property owners is that renters now have more choices, so they aren’t as quick to sign a lease. As of Q4 2024, only 47% of newly built apartments were rented within three months of becoming available.
This trend of apartment supply outpacing demand gives renters more leverage to negotiate and secure better deals.
“With many more rental units chasing fewer renters, landlords are willing to offer incentives rather than risk extended vacancies or tenant turnover,” said Sheharyar Bokhari, senior economist at Redfin.
This won’t be the case for long. Builders have slowed down significantly, which should reduce the supply over time. This means renters need to act quickly if they want to get the best deals.
47%
The number of new apartments that were successfully rented out within three months of entering the market, as of the third quarter of 2024.
How to Negotiate Rent Concessions
Approaching a landlord about rent concessions can feel intimidating, but with the current market on your side, a polite, informed request can go a long way.
Here are a few strategies to help you make the ask effectively.
- Do your homework: Check vacancy rates and absorption data in your desired neighborhood so you can reference trends during your negotiation.
- Be specific and reasonable: Know comparable rents nearby or current concessions for a new building to ensure your suggestion is fair.
- Consider offering something in return: Propose a longer lease or upfront payment in return for discounted rent or a free month.
If you’re a current tenant seeking concessions at renewal, back up your negotiation with your history of on-time rental payments.
You also want to be mindful of when you’re asking. Whether you’re dealing with your current landlord or looking for a new place, fall and summer are slow for leasing, meaning you could score a better deal as a new renter or when renewing a lease. Concessions aren’t always advertised, so it’s important to ask directly when touring a unit or speaking with leasing agents.
“Common concessions offered now by landlords include one to two months of free rent, free parking, ‘sign and save’ offers, flexible lease terms, cheaper security deposits, and free or discounted amenities (gym, coworking space, etc),” said Bokhari.
These incentives can significantly reduce upfront costs for renters and make premium buildings more accessible than they might have been just a year or two ago.
The Bottom Line
With a record number of new apartments and high vacancy rates, renters are in a strong position to negotiate. Whether you’re renewing a lease or looking for a new place, now is the time to ask for reduced rent or added perks. If you have the opportunity to save hundreds or thousands over your lease, it doesn’t hurt to ask.
