Renters are getting more perks as increased construction adds to housing market supply

More rental listings offer attractive deals in response to increased newly constructed properties. According to Zillow, around 30% of rental listings currently include one or more concessions, up from 24% compared to a year ago. These concessions often include free months of rent or complimentary parking.

However, despite the rise in concessions, rent prices are still rising. Zillow suggests that the greater prevalence of concessions might indicate that rent growth is about to stabilize. The areas that have seen the most significant increase in rental concessions are those where multifamily developments have seen a surge in construction, such as Phoenix and Atlanta.

Nationwide, residential construction has increased as developers rush to address the supply shortage in the property market. According to the Census Bureau data released on Friday, 408,000 additional multi-family units were added through October. Multifamily completions during the first and second quarter of 2023 are the highest since the late 1980s. Despite this increase in supply, rent prices have yet to decrease significantly.

Furthermore, homeowners looking to sell their properties have also begun offering concessions to attract buyers. This results from higher mortgage rates and inflated home prices impacting demand………[read more]

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