Rents Are Rising, But Apartment Landlords Still Lack Pricing Power Article originally posted on Globe St. on July 27, 2026 U.S. rents are rising more quickly and fewer apartments are sitting empty, but elevated concessions show that many landlords have not yet regained meaningful pricing power. The typical asking rent increased 2.2% year-over-year to $1,965 in June, according to Zillow. At the same time, 39.7% of rental listings offered a concession, up from 35.2% one year earlier. The seemingly contradictory trends reflect a rental market beginning to tighten but still digesting the inventory delivered during the recent apartment construction boom. Completions declined further during the second quarter while absorption continued rising, slowing the growth in available units. Existing properties must nevertheless compete with the substantial supply already added in recent years. Concessions allow landlords to compete for tenants without reducing advertised rents. An owner can offer a free month, waived fees or complimentary parking while preserving the property’s headline rent. As a result, effective rents paid by new tenants may be considerably softer than asking-rent growth suggests. The national figures also combine sharply different regional conditions. Concessions remain most prevalent in Sun Belt markets that experienced some of the country’s largest construction pipelines. Charlotte had the highest concession rate among the major markets Zillow examined, with 67.1% of listings offering an incentive. Denver followed at 65.9%, while Dallas registered 64.6%, Austin 64.3%, Salt Lake City 64.2% and Nashville 64%. Rent performance was correspondingly weak in many of those markets. Rents declined 1.8% year-over-year in San Antonio, 1.7% in Austin and 1.3% in Denver. Dallas rents were unchanged, while Charlotte and Nashville posted annual gains of just 0.5% and 0.4%, respectively. Conditions were significantly tighter in supply-constrained markets. San Francisco recorded the country’s strongest annual rent growth at 8.2%, while only 24.9% of its listings offered concessions. San Jose rents increased 6.2%, with concessions available on 23.7% of listings. Chicago rents rose 5.2%, with 23.3% offering incentives. Differences between property types also contributed to the national increase. Single-family rents rose 3% annually to $2,320, approximately twice the 1.5% increase for multifamily units, which reached $1,789. Apartments have faced greater supply pressure because multifamily inventory expanded much more rapidly. Zillow expects the market to tighten gradually as construction recedes and existing units are absorbed. It forecasts single-family rents to rise 3.1% this year and multifamily rents to increase 2%.