Over the past few years, multifamily concessions have increased to accommodate renters from the pressures the pandemic put on the economy. Nationally, concessions peaked in the third quarter of 2021, reaching 6.3%. As pandemic restrictions lifted and the economy began recovering, concessions began to drop at the start of 2022, lowering to 4.5% by the end of the year.
With concessions high trying to draw back in renters after the drop off in 2020, the national apartment renewal conversion peaked at 57.8% in the third quarter of 2021, the highest recorded in a decade. The last two quarters of 2022, there began to be a decline in apartment renewals with the influx of inventory and the exponential effective rent growth from 2Q21 to 2Q22.