Rent Concessions Surge in Sun Belt Cities 2026

Rent concessions surge in Sun Belt cities like Sarasota and Austin in 2026, giving renters more free rent and discounts than before.

April 7, 2026

Nina Dale

Rent concessions have reached new highs in Sun Belt cities in 2026 due to recent inventory surges.
Sarasota, Austin, Phoenix, Charlotte, and San Antonio lead the US for the most rent concessions this year.
One to two months of free rent is the most common concession in these markets, reflecting high vacancy rates.
Slow supply-demand rebalancing means low rents and more deals for renters will persist through 2026.

Key Takeaways

Rent Concessions Reach Record Levels

The US multifamily market saw rent concessions spike in 2026, especially in the Sun Belt, as a result of supply waves from prior years, according to Apartments.com. Sarasota, Austin, Phoenix, Charlotte, and San Antonio top the list for the highest share of multifamily properties offering these incentives. As vacancies rise and lease-ups lag, property managers are deploying aggressive concession tactics—most commonly offering one or two months free rent—to attract new tenants.

Most common rent concessions in Sarasota Florida with two months free rent leading at 46.81 percent followed by one month free at 21.28 percent with smaller shares for discounts and waived fees

Sun Belt Supply Wave Drives Market Shift

Between 2023 and 2025, the Sun Belt region added tens of thousands of new multifamily units, outpacing renter demand and pushing vacancy rates well above the national average. Sarasota, FL, for example, has a vacancy rate of 17.4% and an average one-bedroom rent of $1,760, while 81.8% of properties offer rent concessions. Austin, TX, and Phoenix, AZ, both report over 12% vacancy, with average rents of $1,386 and $1,301, respectively. Charlotte, NC, and San Antonio, TX, both face similar trends, with property managers primarily offering one month free rent as the leading concession. This dynamic is playing out across the country, where growing supply continues to push landlords toward larger and more frequent incentives to stay competitive.

Most common rent concessions in Austin Texas led by one month free rent at 38.37 percent followed by two months free at 24.59 percent and three months free at 15.11 percent

Why Renters Have Leverage

Rent concessions have become an important tool as oversupply persists. According to CoStar, the national share of properties offering rent concessions rose nearly 10 percentage points over last year, reaching 41.2% in 2026. Sun Belt cities offer the most leverage for renters, with increased choice and more negotiating power, especially at newer or higher-end properties. Although new construction is slowing, ongoing market rebalancing means concessions and low rents will likely continue through year-end.

Outlook for Rent Concessions

While supply-demand conditions slowly recalibrate, multifamily owners in cities like Sarasota and Austin must continue to compete aggressively for tenants. Renters in these markets will benefit from discounted rents and specials until vacancy rates fall and demand catches up with new supply.