U.S. Concession Use Continues to Ease while Discounts Remain Deep

U.S. apartment concession use fell for a fourth consecutive month in September 2026, while the average discount held at a level that matches the deepest in more than 15 years.

Concessions were offered on 14.5% of stabilized U.S. units, down 0.9 points from August 2026 and the lowest reading since September 2025, according to data from Realpage Market Analytics. Concession usage has fallen for four consecutive months now, and this latest was the deepest of those monthly declines, which together have taken usage down 2.5 points from 17% in May 2026. The average concession increased modestly to 11.1% from 11%, matching the readings from June 2026 and July 2026. At 11.1%, the typical incentive equals about 5.8 weeks free on a 12-month lease.

Usage eases in every product class

Concession usage fell in every product class in September 2026, and Class C led the way. Class C usage dropped 1.4 points to 18.1%, marking a fourth straight monthly decline and the asset’s lowest reading since September 2025. Class B fell 0.8 points to 13%, also a fourth straight decline, while Class A slipped 0.5 points to 12.5% after a second consecutive decline. The spread between the classes narrowed as a result, with Class C usage running 5.6 points above Class A, down from 6.5 points in August 2026.

Floorplans followed the same direction, with usage down at least 0.5 points in each. Efficiencies remained the most heavily discounted floorplan, carrying concessions on 17.1% of units at an average discount of 12.2%, or more than six weeks free. One-bedroom, two-bedroom and three-bedroom units clustered between 13.8% and 14.9% usage.

Discounts hold while fewer units get them

The size of the discount held far steadier than its reach. The average U.S. concession edged up from 10.9% in May 2026 to 11.1% in September 2026, even as fewer units carried one. That is the deepest discount in 15 years and is consistent with operators trimming the number of units that carry an incentive before trimming the incentive itself. Class B posted the largest monthly increase in average concession of the three classes, up 0.2 points to 10.8%, while Class A edged up to 11.5% and Class C held at 11.1%.

The combination of narrow reach and deep discounts has a post-recession parallel. In March 2010, in the aftermath of the Great Financial Crisis, the average concession was 11%, nearly identical to September 2026. The difference is reach. Operators were then discounting 50% of stabilized units, against 14.5% now, so today's incentives reach less than a third as many units.

On the fundamentals side, occupancy averaged 95.2% in September 2026, and same-store effective rents rose 1.5% on an annual basis. Annual absorption of 323,106 units slightly exceeded annual completions of 317,966.

Looking ahead

Four straight months of declining usage point to easing reliance on concessions, but discount depth has yet to follow. While the data suggests some early improvement, it is still too soon to call a national turning point. A sustained decline in both concession use and discount size would provide stronger evidence that apartment fundamentals are rebalancing.