Large Markets Lead the Decline in Concession Use

Concession use eased across all four U.S. regions in August 2026, though the size of the decline varied more at the market level.

Nationally, concessions were offered on 15.4% of stabilized units, down 0.4 points from July, according to Realpage Market Analytics. Larger markets drove most of the month's movement, while smaller markets were nearly evenly split.

All four regions posted mild monthly declines. The high-supply South recorded the steepest drop, down 0.6 points, but maintained the highest concession usage rate at 20.5%. The Northeast and Midwest each declined 0.4 points to 10.7% and 8.6%, respectively. The West recorded the smallest decline, down 0.2 points to 13.9%.

That consistent regional direction masked greater variation across markets. Use declined in 64% of the nation's 50 largest markets, with an average drop of 0.47 points, compared with 48% of the next 100 markets, where the average decline was 0.17 points.

Large Markets Lead the Pullback

Declines outnumbered increases by more than 2 to 1 among the 50 largest markets, with use falling in 32 markets, rising in 15 and holding steady in three. Across the full group, Jacksonville posted the deepest decline at 3.1 points, followed by Salt Lake City at 3 points and Las Vegas at 2.9 points. The entry threshold for the 10 highest-use markets fell from 24.2% in July to 22.3% in August, with Las Vegas dropping out and Phoenix re-entering the ranking. Still, the pullback was not universal, as use rose 0.8 points in Fort Worth, 0.7 points in Nashville, 0.6 points in Denver and 0.4 points in San Antonio.

The pattern was less consistent outside the 50 largest markets, with the next 100 largest almost evenly split. Fort Walton Beach posted the deepest decline among the 150 largest markets, falling 8.8 points to 14.1%, while Naples climbed 14.8 points to 31.0%. Naples has averaged monthly swings of roughly 5 points during the past two years, making the August increase less significant than the headline figure suggests.

Markets with the Most Concessions Use

Despite recent declines, concession use remains prolific in several major markets. Austin led the nation in August, with 35.3% of units offering concessions, followed by San Antonio (33%) and Denver (32.3%). Fort Worth, Nashville, Charlotte, Dallas, Houston, Phoenix and Jacksonville also ranked among the 10 highest-use markets, with at least 22.3% of units offering incentives.

Fort Worth presented the sharpest contrast, ranking fourth in usage but offering the group’s smallest discount at 10.1%.

Where Discounts Run Deepest

While concession use declined, discount size did not follow it. Average concessions increased in two regions and decreased in two, with all four moves remaining small. The Northeast posted the largest increase, up 0.3 points to 9.5%, while the South edged up 0.1 point to 11.6%. The West recorded the deepest decline, down 0.5 points to 11.4%, and the Midwest eased 0.1 point to 8.3%.

That balance also held across markets, regardless of size. Among the 150 largest markets, 47% offered smaller discounts than in July. The share was 52% among the 50 largest markets and 44% among the next 100 largest, indicating only a narrow gap.

Among the nation's largest 5o markets, Phoenix and Austin tied for the deepest discounts in August at 14.8%, followed by Charlotte at 14.5%, Denver at 14.2% and Nashville at 13.6%. 

Los Angeles and San Diego offered the biggest contrast, offering deep discounts of roughly 12% to 13% even though concessions reached only about 9.5% of units. This suggests operators in those markets use incentives selectively but at greater depth.

Expanding the view to the 150 largest markets shifted the discount-depth leaders to Florida. Naples ranked first at 17.6%, its highest incentive level in at least two years, followed by Fort Myers at 16.9% and Sarasota at 15.8%. Bakersfield, CA, at 16.7% and Huntsville, AL, at 15% rounded out the five deepest markets. However, concessions reached only 0.3% of units in Bakersfield, meaning the deeper discount applied to very few units.

August's results point to a modest and uneven decline in concession usage led by large markets. Use fell in every region and in about two-thirds of the 50 largest markets, but in only about half of the next 100 largest. By contrast, discount size declined in fewer than half of all markets, with little difference by market size, and just 24% of markets eased on both measures. Looking ahead, a broader turn would require smaller markets to track with the largest and discount size to follow concession use rather than hold near current levels.