Apartment Landlords Offer Sweet Deals Free Rent Abounds

• Apartment landlords nationwide are offering increased concessions, reaching levels unseen since 2014.
• The average concession is roughly five weeks of free rent, indicating competitive pressure.
• A large supply of new apartments and a softening job market contribute to the need for these incentives.
• Experts compare the current market to 2010, noting that supply is the main driver behind these concessions.

Concessions Rise, Renters Rejoice

Hmm, a shift in the Force, I sense. Apartment landlords, concessions they offer now. Nationwide, a 16.6% increase, since January, concessions given, yes. Higher than December, this is. Mid-2014, not seen rates like these, we have. Five weeks of free rent, on average, a discount it is. Tempting, is it not? Use the Force, young renter, and find the best deal.

Supply and Demand A Delicate Balance

Strong the Dark Side is, but not without its weaknesses. Rents, they gained only 0.2% in February. Six months, the first gain this is. Down 1.5% year over year, rents are. Vacancy rate, a new peak of 7.4% it hits. Seasonal, the bump in rents, likely it is. A structural headwind, high levels of new deliveries are. Absorb, time it will take, for the units.

The Sun Belt Feeling the Heat

The Sun Belt, yes, feeling the pressure it is. Job market weakening, domestic migration slowing, immigration outflows weighing heavy on household formation. Occupancy rates, down from a year ago, in 28 of the top 30 markets, they are. Much to consider, there is. But if it is energy reforms you seek, then Energy Permitting Reform Talks Heat Up: A Toxic Britney Breakdown it is a good read.

Conditioned to Expect a Deal Renters Are

Expect a deal, renters do now. Massive supply, for two years, apartments hitting the market. A deal, they expect. Effective rent growth numbers, incremental improvement they may see. Concessions, high they remain. A path to the Dark Side, concessions are not. Patience, young renters, patience.

Echoes of the Past Parallels to 2010

Like 2010, this is, in some ways. Unemployment, twice today's rate it was then. Absorption, much better it is today. Supply, the trouble it is, 1.4 million new units. The highest count in decades, since the 1970s. A long time ago, that was, in a galaxy far, far away…

Free Rent or Gift Cards A Landlord's Dilemma

Free rent or gift cards, a dilemma for landlords, it is. Rent concessions, impact the reported income, they do. Marketing concessions, giveaways they are. Some companies, prefer the giveaway route. Wean off a rent concession, harder it is. Choose wisely, landlords must. May the Force be with them, they will need it.