Rental market vacancy rates impact renter negotiating power

The national vacancy rate for multifamily properties is currently 7.9%, while asking rents have risen by 1.3% over the past year. Data analysis involving vacancy rates, absorption rates, and rent concessions indicates that renters can find more negotiating leverage in specific geographic areas.

Higher vacancy rates generally benefit renters by increasing unit availability and the frequency of rent concessions. In such markets, landlords may be more willing to negotiate monthly rent payments or offer move-in specials to fill empty units. Conversely, high absorption rates—where units are being filled quickly—tend to reduce a renter's ability to negotiate.