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Jay Parsons argues that rent concessions in the rental market are often a mirage, similar to how the manufacturer's suggested retail price, or MSRP, is used by car dealers.
According to Parsons, asking rents function as an inflated reference point that builds in expected discounts. He notes that both tenants and property managers have become conditioned to these concessions as a normal part of doing business in the current market.
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Parsons has previously highlighted affordability challenges among renters, noting that nearly one third of American renters cannot afford typical operating costs due to high taxes, according to recent analysis. In a separate report, he covered the merger of AvalonBay and Equity Residential to create Vivmark Residential, now the largest apartment REIT with 184,000 units in the sector. Both examples point to significant pressures and changes in the rental housing market.