Free rent offers surge in Dallas
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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.
- One half-mile stretch in Oak Cliff alone saw about 1,000 new luxury apartments built since 2021.
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.