Dec 1, 2023 - News

Free rent offers surge in Dallas

a photo of apartments under construction

As buildings like these go up faster, rent goes up slower. Photo: Courtesy of Cormac West

North Texas landlords are offering more incentives like free months of rent or free parking in an effort to entice new tenants, according to a recent analysis by Zillow.

Why it matters: The increase in what Zillow calls "sweeteners" is an indication that fast-climbing rent costs could be leveling off.

The big picture: While rent prices are still rising nationwide, they're going up much slower than they have been over the last three years.

  • Yes, but: In Dallas, rent prices have remained relatively flat from 2022, according to an October report from Zillow.

Between the lines: The increase in these incentives correlates with the growing supply of apartments on the market. North Texas led the country in apartment construction in 2020-2022.

Zoom out: Zillow data shows that 43 of the nation's largest 50 metropolitan areas have seen a rise in rental concessions compared to last year.

  • Salt Lake City and San Jose, California, top the list. Dallas is sixth.

Reality check: Property managers are using incentives instead of reducing rents.

By the numbers: In October, 46% of Zillow rental listings in Dallas featured incentives like free rent, free parking or upgraded access to amenities — much higher than the national average of 30%, per the real estate company.

  • The share of local rental listings offering concessions went up from 28.5% in October 2022 to 45.9% now, the fourth-largest jump among major metros.

What they're saying: "The pandemic era's increase in concessions was a direct response to decreased renter demand. Currently, we're witnessing a different scenario where the demand for rental housing is high, but there's been a notable rise in supply," Anushna Prakash, an economic research data scientist at Zillow, said in the report.


Get more local stories in your inbox with Axios Dallas.


Support local journalism by becoming a member.

Learn more

More Dallas stories

No stories could be found


Get a free daily digest of the most important news in your backyard with Axios Dallas.


Support local journalism by becoming a member.

Learn more