Standing with her boyfriend, Carson McDonald, on June 4, Chloe Troub considers it highly disingenuous to call it a renter’s market amid high rent costs. In Nashville, Tennessee, landlords appear to come to tenants. This perception arose from the texts Mason Comans, a prospective tenant, received during his apartment search months ago. One property manager mentioned offering a month of free rent, while another offered two months.

Comans noted that some places even offered up to three and a half months free. Kara Ng, Zillow’s senior economist, stated that this defines a renter’s market: “Renters, this is your year.” According to Zillow, the average rent increase nationally slowed to 1.9% year over year in April, trailing behind the May consumer price inflation of 4.2%. Realtor.com figures show a 1.5% decline in rent annually. Ng added that, in April, a record 39.8% of rentals listed on Zillow included move-in perks, ranging from waived fees to a month or more of free rent.

These move-in incentives offer financial relief for families strained by other rising costs like energy bills and fuel. “Rent is the place giving you that breathing room,” Ng commented. However, real estate conditions vary significantly by location. The benefits for renters heavily depend on where they live.

An Apartment Construction Boom

The slow rent increase relative to inflation can be linked to basic economics: supply and demand. A construction boom has increased the supply of apartments. In 2024, the U.S. developed about 600,000 apartment units, marking the highest level of apartment construction in 38 years. This surged supply overtook demand, with the rental vacancy rate reaching 7.3% at the year’s start, its peak point in 12 years.

This new housing supply isn’t evenly spread across the country. Cities in the Sun Belt particularly embraced this construction surge. Consequently, in cities like Nashville, Phoenix, and Austin, Texas, apartment managers often offer incentives to new renters. “There’s a lot of apartment buildings hitting the market all at once,” Ng stated. “And property managers are trying to fill them with freebies.”

However, in cities like Chicago, the conditions are different. “Hell, no,” said Chloe Troub, explaining the significant cost of living despite claims of a renter’s market. Rent in Chicago saw one of the highest increases at 5.4% year-over-year in April, reported Zillow. This arises from too many renters and insufficient apartments.

Troub and her partner pay $1,600 for a one-bedroom, considered a bargain. Yet, seeking more space led her to the best offer of a $2,000 sublet, which would exhaust her boyfriend’s last pay raise. The subletting party, unfazed by her reluctance, had 12 other showings awaiting.

The Fine Print of a Renter’s Market

Another aspect renters should note is the temporary nature of move-in perks. “As soon as they get you locked in, you’re still getting rent increases every year,” warned Michelle Becker, an Adaro Realty broker in Nashville. To leverage new deals, Comans habitually moves and has done so four times in five years.

His present one-bedroom, newly built, includes pool access, private markets, and two and a half months of free rent. For more free rent next year, he’d need to relocate again. Despite move-in incentives, rents remain high. Zillow reports a 36.9% rise in average rent since the COVID-19 pandemic began.

Comans, now paying $1,800 monthly, remarked, “It is a lot of money. It’s not cheap at all.”