SEATTLE, WA – Rental concessions on Zillow listings are now nearly twice as common as they were in February, as landlords strive to attract new tenants in a rental market that has softened considerably since the coronavirus pandemic took hold.
The share of rental listings on Zillow that advertise some form of concession rose from 16.2% in February to 30.4% in July. That includes discounts like free months of rent or parking, offering a gift card, or even waiving a deposit fee. Only 12.5% of rentals advertised concessions last July.
Of the six types of concessions tracked in the Zillow study, free weeks of rent was by far the most common. With relief ranging from two weeks to two months, free rent made up 90.8% of all promotions offered across the U.S and ranked as the top concession choice in all but six of the 50 largest markets. Reduced or waived deposits (9.1%) and gift cards (6.6%) followed. The median amount of free rent offered is six weeks, which equates to an 11.5% annual discount. For the typical U.S. rental, that would mean about $200 in monthly savings.
Landlords appear to be choosing to offer concessions rather than reduce rent to entice tenants to their buildings, as demand for rentals has waned since February.
“Before the pandemic, rent growth was accelerating and the nation was seeing concessions dwindle. That trend reversed sharply after the pandemic hit in February,” said Zillow economist Joshua Clark. “In a softer rental market, landlords are trying to push the right button to bring renters into their space.”
A survey of renters taken in April as part of Zillow’s 2020 Consumer Housing Trends Report[1] found that 55% reported receiving at least one concession or perk in their rental agreement. Among renters who received at least one concession, the most common were parking (35%) or at least a month of free rent (34%), followed by a reduced monthly rent price (23%).
Renters in multifamily and other home types are more likely to receive some sort of concession than those in single-family rentals: 63% of multifamily renters report getting at least one, as do 59% of renters in other home types. Only 35% of single-family renters reported receiving any concessions. That means the increase in concessions is likely to be most prevalent in the multifamily buildings common in urban cores, which is consistent with previous Zillow research showing urban rents have been hit harder than rent in the suburbs during the pandemic.
Renters will most often find discounts in Washington D.C. — 57.5% of listings advertised at least one type concession in July. Charlotte (53%) and Austin (47.1%) had the next-highest shares. These are all up dramatically from July 2019, when 27.4% of rentals in Washington D.C. were offered with concessions, Charlotte had 29.4% and Austin just 15.3%. The only metro that saw concessions go down since February is Jacksonville (down 0.8 percentage points).
Concessions have flattened in some of the nation’s most expensive markets, where rent is dropping. July rents were down year over year in the metros of New York (-2.6%) and San Jose (-2.2%). The share of concessions in New York rose from 8.8% in February to 14.9% in April, before easing down to 13.8% in July. Likewise, concession share in San Jose went from 21% in February to 46% in June, then down to 40.1% in July.
“Concessions can often be a leading indicator of a coming price drop in that landlords will often offer them first, before reducing rent. If owners feel concessions are no longer moving the needle, they’ll reduce prices,” Clark said. “Many landlords prefer to offer a concession rather than cut rent and set a precedent that could linger when the market picks back up.”
One of the largest challenges for property managers since the beginning of the pandemic has been capturing prospective tenants’ interest in a space without the option of an in-person tour, said Bevan White, vice president of marketing at Pegasus Residential.
“When our teams switched to a virtual leasing environment in late March, they had to adapt quickly as they couldn’t physically show an apartment home with an in-person tour, one of the major tools we have to build value,” White said. “Teams have used teaser photos, pre-recorded walk-throughs of amenities and even personalized recorded messages to capture the renters’ interest before conducting a full virtual tour with the site team.”
Without in-person tours in their toolbox, Pegasus has looked for new ways to add value for tenants beyond offering concessions. “We have slightly increased concessions in some markets, and we have also focused on increasing the availability of smart homes as a way to add value to a unit instead of simply offering free rent,” White said.
U.S. rents grew 1.2% year over year in July, down from 3.9% in February and 3.5% in July 2019. More renters than last year have missed payments amid record levels of unemployment, and that may increase after extended unemployment benefits have expired. A Zillow study in June found that approximately 2.7 million U.S. adults went in with a parent or grandparent in March and April, another recent hit to rental demand.

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CHESAPEAKE, VA – Helix Apartments, a six-tale urban mixed-use community with 133 apartment homes and ground-floor restaurant/retail spaces, is the first residential community in Summit Pointe. Helix, managed and leased by Drucker + Falk, is leading the Chesapeake multifamily market in rent per square foot. In just two months of accepting applications, nearly 65 percent of the apartment units have been pre-leased, and more than 100 prospects have expressed interest in the months prior to pre-leasing.
Two additional residential communities, Mosaic and The Belaire, are scheduled for Phase Three of Summit Pointe, located in the heart of the Greenbrier Central Business District. All three apartment communities will be located on three adjacent blocks, making a synergy between residential, retail and office properties. The communities will vary in height from four to ten tales, and all will feature uniquely designed apartment homes with multi-faceted, modern resident amenities. Each future resident will have the option to hand select their home, as personal hard hat tours are being offered by request.
Summit Pointe is a distinctive, metropolitan mixed-use destination singularly focused on high quality offerings and amenities. The vibrant community is home to luxurious apartments that are surrounded by the region s largest employment base in addition to some of the most well loved spots in Hampton Roads for shopping, dining, and entertainment.
With an elegant, stylish design and on-trend interior finishes, Helix provides the ultimate in modern living: granite countertops; stainless steel appliances; sleek wood grain plank flooring; a rooftop sky lounge that includes an outdoor gas fireplace and natural gas grills and overlooks all of Summit Pointe; a 24/7 fitness center with state-of-the-art Matrix cardio and weight training equipment; keyless 24/7 controlled access to the building; Wi-Fi lounge and gourmet coffee bar; attached parking garage; an Amazon Hub package locker; dry cleaning pick up and drop off; and much more.
Wendy Drucker, managing director of Drucker + Falk, says, We are thrilled to partner with Summit Pointe Realty and to have the opportunity to be a part of all of the exciting development happening in Chesapeake. Drucker + Falk is committed to providing exciting new communities for Chesapeake residents, and Helix is just the tip of the iceberg.
Concurrently under construction in Phase Two of Summit Pointe is 555 Belaire, an unrivaled 150,000-square-foot office tower located between Volvo Parkway and Belaire Avenue. The building, directly across the street from Helix, has five levels of office space with a distinctive multi-tale lobby and engaging street-level retail and restaurant spaces. Inviting outdoor parks and plazas will encourage active community involvement. Completion and occupancy of 555 Belaire is expected in fall 2020.
Phase One development in Summit Pointe included the October 2018 delivery and occupancy of the Dollar Tree, Inc. (NASDAQ: DLTR) Store Support Center. Dollar Tree is the region s largest Fortune 500 company, currently ranked #131, and its campus in Summit Pointe is home to more than 2,000 associates.
Chris Williams, sr. vice president of Summit Pointe Realty says, The city of Chesapeake demonstrated the want and the need for an urban lifestyle community. Throughout the phases of development, the overwhelmingly positive response, the quick-paced leasing velocity, and the droves of interest show that we are headed in the right direction, and we are very excited to see this area grow.

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GRAND RAPIDS, MI – Watermark Residential, a wholly owned affiliate of Thompson Thrift and one of the nation’s leading multifamily developers, announced the acquisition of approximately 24 acres of land in Grand Rapids where the company will develop The Grove by Watermark, their newest Class A luxury apartment community in the Midwest and first in Michigan. The expected completion date is August 2022.
Located at 3590 Beltline Avenue NE, The Grove by Watermark is northeast of I-96, Michigan’s major east-west thoroughfare, connecting Grand Rapids, Lansing and Detroit. With frontage on Beltline Avenue, a major north/south connector, the convenient location offers residents a small commute to downtown Grand Rapids, where they can delight in local museums, the John Ball Zoo and a host of breweries and restaurants. A fantastic majority of the area’s major employers, including Axios, the headquarters of Midwest supercenter chain, Meijer, and Spectrum Health, the largest employer in Western Michigan with 31,000 employees, are within a 15-mile radius.
“Located near the affluent Forest Hills community, and within one of the best school districts in the state, The Grove by Watermark has the distinction of being the only proposed or under construction multifamily community within a 10-mile radius, despite the strong demand,” said Brian Southworth, senior vice president of development with Watermark Residential. “The fact that we were able to secure such a fantastic site for this development which we expect will exceed the region’s high standards and help to serve the rental needs of the community is a testament to the entire Watermark team.”
The Grove by Watermark will include 320 one-, two- and three-bedroom apartment homes, averaging nearly 1,200 square feet. As with all luxury Watermark communities, the utmost care has been taken to make a superior resident experience. Each unit will feature Class A premium interior finishes, such as 9-foot ceilings with designer light fixtures, smooth glass cooktop stoves and stainless steel appliances, gourmet bar-kitchens with granite countertops, walk-in closets, garden tubs and full-size washers and dryers. Some units will also include an attached garage.
The resort style community amenities will consist of a professionally decorated clubhouse, a 24-hour fitness center with state-of-the-art equipment, a swimming pool with cabanas and fire pits, pickle ball courts, as well as a pet-friendly bark park and doggie spa. Plus, each resident will have consistent access to a committed management team dedicated to the highest-level of service.
The Grand Rapids-Wyoming MSA is the fastest growing region in the state, home to more than 1million residents, with Grand Rapids itself expected to grow 4.5 percent over the next five years. Job growth in the area has averaged over 2.3 percent per year for the last 10 years, with BestPlaces.net predicting a job growth of nearly 36 percent over the next decade. Additionally, Grand Rapids consistently ranks high on the U.S. News’ livability scale and has been named the “Best Place to Live in Michigan”, as well as one of the 15 best places to live in the country. Some other accolades for Grand Rapids include:

#1 “Fastest Growing Economy in the U.S.”, as ranked by Forbes.
#1 “Places that Millennials are Flocking to in the U.S.”, as ranked by Business Insider.
“Best Travel Destination in Michigan for 2020”, as ranked by Travel Pulse.

Josh Purvis, managing partner with Watermark, added, “As with all of our developments, The Grove by Watermark meets our stringent selection criteria, including simple access to major thoroughfares and proximity to major employers and high-quality retail experiences. With a strong regional demand and limited supply of Class A multifamily residences, we look forward to bringing the Watermark experience to Grand Rapids.”

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