New York Concessions are Highest in Nation and Growing

New York currently has the highest concessions in the country: the value of concessions offered has risen 5.1 percentage points from 7.5% at the end of 2019, to 12.6% in August 2020, according to Fannie Mae. For context, a month of free rent is a concession rate of 8.3%. This increase is significant because not only are multifamily concessions rising in general, but new research from Fannie Mae shows they are rising the fastest in the top markets around the US as well as in top, class A properties.

Other top markets include San Francisco, where concessions are trailing New York at 11.3%, while Boston follows at 9.6%. Modestly priced markets, like Orlando and Phoenix, have seen a lower increase in concessions compared to last year and relatively low concessions overall. Orlando concessions increased from 5.3% to 6.6%, and Phoenix concessions have increased from 4.9% to 6.4%.