Although rents remain at a historic high, dozens of landlords are now offering discounts on asking prices. In San Francisco, where median rents have been on the increase for years, landlords reduced the listing price on 21 percent of listings in the 12 months that ended Sept. 30, according to a new report published by Trulia. That’s up from 14 percent of listings that were price-chopped last year.
In more than 40 cities across the country, including hot spots like Denver and quieter markets like Tulsa, Okla., landlords cut prices on at least 10 percent of listings.
One possible reason landlords are reducing their asking prices is to make their units competitive with the supply of new apartments flowing into the market. Once September passes landlords have a hard time filling vacancies but when they reduce the price, they’re suddenly finding people who are eager to rent.
These discounts are modest, but some listings also come with “concessions” such as a free month’s rent or a gift card to seal the deal.While rent growth has slowed in the last year, rents are still rising in most markets. Even as landlords budge on price, they’re still commanding historically high rents.