Concession burn-off is the process of eliminating rental concessions (free rent, gift cards, waived fees) as market conditions tighten or a newly-constructed property reaches stabilization.
During lease-up or in soft markets, concessions bring effective rent below asking. As stabilization approaches or market conditions improve, landlords reduce concessions and let effective rent converge upward toward asking rent.
LA multifamily 2026: the concession gap (asking vs. effective rent) is roughly 14% — above long-term average but below the 2020 peak. Burn-off is expected through 2026–2027 as supply pipeline thins and absorption continues. Recovered asking-to-effective parity would produce meaningful effective rent growth.
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