Rental concessions are no longer a niche tool, they’ve become a key part of leasing strategy across asset classes. As of Q1 2025, nearly one in four units in some metros is advertised with a discount, and the average concession hovers around one month of free rent.
For operators navigating increased supply and growing economic pressure on renters, this shift demands attention. ApartmentIQ’s national data shows that even Class B and C properties—historically less reliant on incentives—are now using concessions to stay competitive.
Key Takeaways from Q1 2025:
1. Supply-driven softness is reshaping the market.
A wave of new deliveries combined with renter affordability challenges has pushed many metros into a concession-heavy cycle. This trend is particularly pronounced in the Sun Belt and Mountain West.
2. One month free is the new baseline.
Across most major markets, advertised concessions now average four to six weeks of free rent. That’s becoming the standard, not the exception.
3. Net effective rent is under pressure.
Despite surface-level asking rent growth, concessions are widening the gap between asking and effective rents. In 82% of top markets, effective rent growth is trailing, and operators who ignore that gap risk making pricing decisions on outdated assumptions.
What to Watch Next
Concessions haven’t hit Great Recession levels, but the upward trend is clear. Multifamily teams should treat this as a real-time opportunity to reassess strategy, and not as a temporary blip.
Operators who understand where, when, and how incentives are being used in their markets will be better positioned to drive occupancy while protecting rent roll.
How ApartmentIQ Helps
ApartmentIQ tracks advertised concessions daily across 35M+ units using 100% public data—giving revenue and pricing teams the visibility they need to act fast and stay competitive.
Want to See Where Your Market Stands?
Benchmark your portfolio against real-time concession trends: download the full Concessions 2025 Report now and see how ApartmentIQ’s 35 million-unit dataset pinpoints where you’re leaving rent on the table