PROVIDENCE – As the coronavirus has put pressure on residential rental markets around the country, landlords have begun increasing their offerings of concessions and perks, according to a report from Zillow on Tuesday.
The report said that 12.4% of rentals in the Providence metropolitan area were offering price concessions, an increase from 5.8% one year prior. Despite more than doubling its rate of rental concessions over the year, Providence was ranked as having the No. 2 lowest rate of rental concessions of all of the 50 largest metro areas in the United States.
Redefining Higher Education: The Strategic Imperative of a Three-Year Bachelor’s Degree
For over a century, the structure of undergraduate education has remained largely unchanged—typically requiring four…
Learn More
The report tracked Zillow rental listings and whether they offered concessions or added perks, including free rent, waived or reduced deposits, gift cards, free parking, waived application fees and waived broker fees.
Of all concessions nationally, free weeks of rent was found to be the most common.
“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.”
The rate of concessions nationally was 30.4% in July, an increase from 12.5% one year prior.
The Boston metro area ranked No. 44 of the largest 50 metro areas in the country in July, with 19.5% of listings offering added perks or concessions, a rise from just 2.8% one year prior.
The Oklahoma City, Okla., metro area had the lowest rate of rental concessions in July at 6.2%, while the Washington, D.C., metro area had the highest rate at 57.5%.
“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,” Zillow’s report found.
In a separate Zillow survey conducted in April, the company found that renters in multifamily and other home types were more likely to receive some sort of concession than those in single-family rentals, with 63% of multifamily renters reporting getting at least one concession, while only 35% of single-family renters reported receiving any concessions.
The full report may be viewed online.
