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Multifamily concessions will remain key in 2026 as high vacancy rates push landlords to offer more tenant incentives.

By Nina Dale via CRE Daily.com

• Rent growth is expected to edge up to 1.9% by the end of 2026, according to Apartments.com, as supply and demand begin to rebalance across regions.
• Despite improving fundamentals, vacancy rates will stay above 10%, keeping landlord concessions at elevated levels.
• More than 30% of multifamily properties are offering leasing incentives, a trend projected to persist through 2026.
• Long-term rent discounts are the most effective concession strategy, outperforming short-term deals or non-cash perks.

Concessions Still Critical

The multifamily sector enters 2026 with mixed signals as some markets face oversupply while others see rising demand, reports GlobeSt. The net result, according to Apartments.com, is a slow but steady improvement in rent growth. It’s forecasted to rise from near-zero levels to 1.9% by year-end. But even with that uptick, high vacancies will keep landlords dependent on concessions.

What Works — And What Doesn’t

Incentives are nothing new to multifamily leasing, but not all are equally effective. The report found 67% of tenants prefer rent discounts over 12 months, compared to 62% favoring one month free rent. Gift cards and electronics (25%) and gym memberships (17%) are less impactful, failing to attract most prospective renters.

Premium Properties Feel The Pressure

Higher-end multifamily assets — rated four and five stars — are expected to use concessions more aggressively. These properties aim to maintain occupancy in a competitive market. These properties have the most to lose from prolonged vacancies and are more likely to offer long-term rent reductions to secure leases.

Looking Ahead

Landlords leaned heavily on concessions after COVID disruptions and continue to rely on them as a key leasing strategy today. In 2021, 60% of CBD multifamily units offered them, compared to 40% in urban areas and 25% in suburbs. While those gaps have narrowed, the overall use of incentives remains widespread — a trend that’s not going away anytime soon.

With vacancy still elevated and rent growth only beginning to improve, concessions will remain a defining feature of the multifamily leasing landscape in 2026.