This analysis is pulled from our Annual Report. Read the full report for portfolio-level benchmarks and forward-looking trends.
In 2025, concessions moved from a seasonal tactic to a year-round revenue strategy. Elevated supply, shifting renter demand, and increased competition reshaped how operators approached incentives. What used to be a quick fix for slow months became a deliberate lever used to protect occupancy and stabilize net effective rent.
Survey results show just how widespread the change became with 60% of teams reporting that more than half their portfolio offered concessions, and 57% adjusting those concessions more frequently than in prior years.
Why Concessions Became Strategic Instead of Reactive
Operators weren’t simply offering more concessions; they were getting smarter about how and when to use them. Instead of relying on broad-strokes specials, teams analyzed unit-level performance, monitored competitive supply daily, and used real-time data to guide the depth and timing of incentives.
Class B and C communities in particular felt the pressure, as new deliveries and softened demand created pockets of oversupply. In top 50 metros, concessions reached four to six weeks free at times — a level that would have been considered extreme only a few years ago.
This created a new expectation: operators must understand not just how much to offer but why a concession is necessary in the first place.
How Concession Strategy Will Evolve in 2026
Next year, concessions aren’t expected to disappear. Instead, they’ll normalize — becoming more seasonal, deliberate, and dependent on forecasting than ever before. The teams that stay ahead will be those who:
- Track competitor concessions consistently
- Understand demand patterns at the unit level
- Avoid over-incentivizing in oversupplied markets
- Tie concession strategy directly to revenue outcomes
Concessions are no longer a reactive lever, they’re a strategic capability operators must refine heading into 2026.
Want deeper insights on where concession strategy is heading next?
Read the full Annual Report for the trends shaping 2026.
