Regional and Market Differences Reveal Uneven Apartment Concession Usage

U.S. apartment concession use edged lower in June, but the pullback remained consistent with normal seasonal patterns rather than signaling a broader easing trend. At the regional and market level, however, the story was far from uniform. Operators across the country are using concessions in different ways, with some markets leaning on widespread incentives while others are offering deeper discounts to a smaller share of renters.

Regional results illustrate the difference between concession breadth and discount depth. The higher-supply South recorded the most widespread use at 21.9% of stabilized units, followed by the West at 14.9%. Usage declined in both regions during the month, with a deep 0.8-point drop in the West. The Northeast edged up 0.2 points to 11.2%, while the Midwest remained lowest at 10%. Discount levels told a different story: The West posted the deepest average concession at 11.9%, followed by the South at 11.6%.

Market results show that high concession use did not always translate into equally deep discounts. Austin, Denver, Nashville and Phoenix each recorded usage above 25% with average discounts of at least 14.6%, placing them in a broad-and-deep pressure group. Austin led both measures, with concessions offered on 37.0% of stabilized units at an average rate of 15.6%. Phoenix followed in discount depth at 15.1%, while Denver and Nashville each saw discounts of 14.6%.

San Antonio, Fort Worth and Houston also recorded widespread use, but their average discounts were more moderate. Texas metros accounted for half of the top 10 markets for concessions usage, underscoring the state's continued concentration of incentive pressure. Phoenix and Dallas entered the list in June, while Atlanta and Charlotte dropped out. Dallas, Las Vegas, Houston and Tampa remained tightly clustered near the cutoff, where modest monthly movement can quickly reorder the ranking.

Overall, June results point to persistent but uneven concession pressure. National usage eased in line with normal seasonality, yet discount depth reached a new high and concession activity remained elevated from a year earlier. Pressure was most widespread among Class C and studio units, while regional and market results showed that operators were using incentives differently depending on local conditions. That variation makes both measures essential: Usage shows how broadly concessions are deployed, while the average concession captures how aggressively properties are discounted where incentives remain necessary.