In the summer of 2026, the rental market in the United States presents a study in contrasts. While some cities are offering generous incentives to attract tenants, others are grappling with steep rent increases. This divide is exemplified by the experiences of renters in Nashville, Tennessee, and Chicago, Illinois.

Mason Comans, a Nashville resident, found himself in an unusual position earlier this year. As he searched for a new apartment, property managers reached out to him with enticing offers. One offered a month of free rent, another two. Comans even saw some places offering three and a half months free. This phenomenon is part of a broader trend where renters are gaining leverage in certain markets.

Nashville’s Rental Boom

Zillow senior economist Kara Ng attributes this shift to basic supply and demand economics. The typical asking price for rent nationally is now rising slower than wages and inflation, with a modest increase of 1.9% year over year in April. In contrast, consumer prices more broadly were up 4.2% in May. figures even show a 1.5% year-over-year decrease in rent.

Ng highlights that a record 39.8% of rentals on Zillow offered move-in incentives in April, ranging from waived fees to months of free rent. These incentives provide a much-needed cushion for American families grappling with other rising expenses like power bills and gasoline. “Rent is the place giving you that breathing room,” Ng said.

The reason behind this shift is a significant apartment construction boom. In 2026, the U.S. built 600,000 apartment units, the most in 38 years. This surge in supply has outpaced demand, leading to a rental vacancy rate of 7.3% at the start of the year, the highest in a dozen years.

However, this new supply is not evenly distributed. Sun Belt cities like Nashville, Phoenix, and Austin, Texas, have seen a particularly high number of new apartment buildings. “There’s a lot of apartment buildings hitting the market all at once,” Ng explained. “And property managers are trying to fill it, and they’re doing it with freebies.”

The Chicago Contrast

Meanwhile, in Chicago, the rental market tells a different story. Chloe Troub, a Chicago native, was taken aback when she heard about the favorable rental conditions in other cities. “Hell, no,” she said when asked if it’s a renter’s market in Chicago. “I find that to be really insulting, just given the cost, the sheer cost, of putting a roof over your head right now.”

Chicago has seen some of the largest rent increases in the nation, with rents rising 5.4% year over year in April. This is also a result of supply and demand dynamics, but in reverse: too many renters are chasing too few apartments. Troub and her boyfriend currently rent a one-bedroom apartment for $1,600, which she considers a steal. However, when she recently searched for a larger space, the best deal she found was a sublet for $2,000.

This price increase would have consumed her boyfriend’s last raise. When she told the subletter that the price was too high, he was unfazed, stating he had 12 other showings lined up. “It’s a rat race out there,” he told her.

The Fine Print of the Renter’s Market

While the current rental market may seem favorable for renters in some cities, there are important caveats to consider. First, move-in incentives don’t last forever. Michelle Becker, a broker with Adaro Realty in Nashville, pointed out that “as soon as they get you locked in, you’re still getting rent increases every year.” Comans, who has moved four times in five years to take advantage of these deals, acknowledges that he would have to move again next year to secure more free rent.

Second, while the current market may offer some relief, rent is still more expensive than it used to be. The average rent has increased by 36.9% since the beginning of the COVID-19 pandemic. Even Comans, who is taking advantage of the current incentives, is paying $1,800 a month. “It is a lot of money,” he said. “It’s not cheap at all.”