According to the San Francisco Chronicle, nearly 40% of landlords in the San Francisco Bay Area are offering discounts on the real estate website Zillow to attract tenants. These offers may include several weeks of rent-free living, free parking, or other deals.

This trend has become increasingly common in recent years, with the percentage of units offering discounts rising from less than 20% in 2019 to over 45% in early 2021. By August 2023, 39% of rental units were offering discounts.

During the COVID-19 pandemic, discounts became more widespread as many landlords provided deals or lowered rents in response to decreased demand.

According to data from Apartment List, from January 2020 to January 2021, the median rent in the San Francisco Bay Area dropped by over 13%.

From August 2019 to August 2023, Zillow's data shows that the share of units offering discounts in the Bay Area increased by 25 percentage points, ranking fifth among the 50 most populous metropolitan areas in the United States.

During the same period, the San Jose metropolitan area saw an increase of 29 percentage points, with 46% of rental units offering deals by August 2023.

While rents in the Bay Area have rebounded somewhat after the initial decline, prices in many cities have surpassed pre-pandemic levels. However, the increase in discounts suggests a more tenant-friendly rental market. The report also noted that this growth may be related to an increase in rental vacancy rates.

According to data from the U.S. Census Bureau, in the second quarter of 2023, the rental vacancy rate in the San Francisco Bay Area was 6.9%, up from 5.4% in the second quarter of 2022.

Carley Goss, the Government and Public Affairs Director at the San Francisco Apartment Association, stated that offering discounts is a quick way to fill vacancies in newly constructed buildings, especially those completed in the past two years. This is because these apartment buildings often have high development costs, and owners or developers need to generate income quickly to repay construction loans and other expenses.

According to Janan New, the association's executive director, offering discounts for rent-controlled housing in San Francisco may be less common than in other metropolitan areas. This is because offering discounts may reduce the amount landlords can later raise the rent.

Overall, while rents in the San Francisco Bay Area remain high, an increasing number of landlords are offering discounts to attract tenants, especially in new construction. This is a sign of a more tenant-friendly environment, but people should still exercise caution when considering discounted services.