In Nashville, Tennessee, a flood of new apartment buildings has reshaped the market, and landlords have leaned into move-in incentives to attract tenants. Mason Comans, a Nashville apartment hunter, recalls text messages from property managers offering one month, two months, or even three and a half months free rent as they competed to fill units. “I even saw some places doing three months, three and a half months free,” Comans said. This Memphis-to-Chicago contrast illustrates a renter’s market that looks very different depending on where you live, with Zillow senior economist Kara Ng summing up the broader message: “Renters, this is your year,” she said, but that judgment depends on local conditions.
Nationally, conditions have become more nuanced due to a sizable construction boom. In 2024 the United States built about 600,000 apartment units, the most in 38 years, contributing to a higher vacancy rate early this year. The vacancy rate stood at about 7.3% at the start of the year, the highest in over a decade, a development that has helped ease some pressure on rents in certain markets. The typical asking rent nationally rose more slowly than broader price increases, with a 1.9% year-over-year uptick in April, according to Zillow, while the May inflation reading showed consumer prices up 4.2% year over year. Realtor.com data pointed to rents slipping 1.5% year over year in that period, underscoring the uneven national picture.
Move-in incentives have become a notable feature of the current environment. In April a record share of rentals on Zillow advertised concessions such as waivers of fees or multiple months of free rent, signaling landlords’ willingness to use upfront concessions to fill vacancies amid abundant supply. Ng highlighted that these incentives offer a cushion for households facing higher energy costs and gasoline prices, though she cautioned that such perks may not endure and that annual rent increases persist even with concessions.
The geographic variation is pronounced. In Sun Belt hubs that saw stronger new construction, landlords have used incentives to speed leases and reduce vacancies. “There’s a lot of apartment buildings hitting the market all at once,” Ng said, describing how competition has forced some operators to offer freebies to attract renters. In Chicago, meanwhile, rents have tightened for some households, with Troub noting that the Windy City has experienced more pronounced price pressures.
Troub and her boyfriend currently rent a one-bedroom in Chicago for about $1,600 a month, a price she calls “a steal” in the current climate. Yet she recently encountered a sublet listing for $2,000, a figure she found unaffordable. When she told the subletter the price was too high, he reportedly replied that he had 12 other showings lined up behind her, illustrating the fierce competition in some markets. Troub described the market as a “rat race” on the hunt for affordable space.
The realities of affordability remain mixed. While some metros with robust new supply have seen rents ease and concession use rise, other markets still see rents climbing or moving in lockstep with inflation. Comans, who has moved four times in five years, said his latest unit came with access to a pool and a two-and-a-half-month free rent period, but he acknowledged that if he wants more free rent next year, another move could be in his plans.
The broad takeaway is that the rental landscape in 2026 reflects a split economy: strong supply-driven relief in some locales and persistent pressure in others. The national inflation backdrop remains a separate driver for households, with consumer prices rising more slowly than many other costs but still above pre-pandemic levels. As markets continue to diverge, renters should expect local shifts in incentives, pricing, and availability that hinge on construction pace, vacancy dynamics, and the mix of demand across cities.
