Concessions include free months of rent and/or parking.

These are the markets showing the largest increase in concessions:

The concessions come at a time when vacancy rates are rising across the U.S.

Source: Zillow

They will each be capped at $70 billion, however, workforce housing will be exempt from their lending limits.

Workforce housing is defined as developments that adhere to state or local housing affordability initiatives for at least 10 years of the loan term. In regions that aren’t cost-burdened, the threshold for affordability is 80% of the area median income or below. Cost-burdened markets can qualify with rents at 100% of AMI, with some up to 120%. Only 18.6% of their loans fit within those income limits in 2022.

Fannie and Freddie have $75 billion in loan limits in 2023, and they were only at $32 billion and $41 billion at the end of Q3.

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