Throughout 2025, Triangle multifamily landlords have grappled with a glut of supply created by a postpandemic boom in construction. Some 11,000 units are expected to deliver by the end of the year, and some 13,000 units were delivered the year prior, according to Northmarq.
That has put downward pressure on rents.
While absorption and occupancy remain strong in the metro area compared to other parts of the Sun Belt, rent prices ticked down 20 basis points more than the national average in the third quarter, according to Yardi Matrix.
Because of this, landlords now must compete with each other for tenants.
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This has led many area landlords of new properties to offer generous concession packages to draw in and retain tenants, according to CRE experts speaking at Bisnow’s Triangle Multifamily Conference in Raleigh on Dec. 4.
“We’ve seen concessions of anywhere from one month free to four months free,” Tara Fichter, regional vice president of ZRS Management, said at the Marriott Raleigh City Center. “It's definitely impactful and important to make a great first impression to keep residents happy so we don’t have to offer those concessions down the road.”
Fifty-four percent of Raleigh landlords offered multifamily concessions in the second quarter, according to real estate technology company Rental Beast. Nationally, 30% of landlords offer such concessions.
Still, the concession rate in Raleigh is slightly down from its peak of 59% in Q4 2024.
Rob Reid, residential managing director at Kane Realty, said the prevalence of concession packages ebbs and flows, just like the pipeline of multifamily housing construction.
“The first half of next year is probably going to feel fairly similar to this year,” Reid said. “After that, I think you start to see concessions start to dissipate a little bit.”
He predicted that properties that maintain a good occupancy position going into 2027 will be in a strong position to achieve rent growth.
Reid said there is no data that proves offering concessions leads to higher leasing numbers. Whether or not to offer concessions will “really come down to the anxiety of the owner,” he said.
Fichter said that if several properties in the submarket are advertising three months free, “then everyone feels like they have to do three months free.” It then becomes hard for properties to distinguish themselves from one another.
The Raleigh-Durham multifamily market has proven relatively resilient despite the glut in delivered units. That is because the metro area is considered a desirable place to live, panelists said.
The Raleigh-Durham area’s population increased by 10.4% since 2019 and likely will continue to grow in the coming years, according to Cushman & Wakefield.
That means the market is positioned to experience increased occupancy and rent growth as the pipeline for multifamily narrows.
“Raleigh-Durham’s relative affordability and educated workforce will continue to attract both renters and investors, positioning the market for stable rent growth and absorption,” the Cushman report says.
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