Philadelphia’s suburban apartment rental market is showing signs of cooling, as landlords with units to fill begin offering more perks to attract tenants. Following a strong spring leasing season, rental activity has slowed in late summer, prompting the enhanced offers for renters.
In August, the share of suburban apartment properties offering incentives increased to 16.7% from 10.5% in July. These incentives include reduced security deposits, waived application fees and free rent for one or more months.
Recent developments reflect this shift. Mi-Place at Downingtown, which opened with 400 units earlier this year, is offering one month of free rent on two-bedroom apartments and half a month free on one-bedroom units and townhouses with 10-month leases. J Veridian at Upper Dublin, a 310-unit complex completed this year, is offering up to two months of free rent and a $500 gift card for tenants signing 16-month leases.
August’s average concession rate is the highest recorded for that month in recent years. It stands 3.7 percentage points above the five-year August average of 13%, indicating the increased pressure landlords are feeling to fill vacancies.
However, this trend also reflects seasonal leasing patterns, as incentives are typically boosted at the end of summer to avoid empty units during the slower fall and winter leasing months.
Despite the recent increase, suburban multifamily properties in Philadelphia still offer fewer incentives than their urban counterparts. Concession rates averaged 25% for apartments in the city of Philadelphia in August.
While the increased concession levels suggest a short-term softening, the suburban market remains relatively strong compared to urban areas. The timing and scale of the changes point to a controlled adjustment rather than a major shift in market conditions.
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