May 2026 Housing Market: Buyers Gain Leverage With Rising Concessions
Home seller concessions hit record levels in May 2026, reflecting a market increasingly favoring buyers, according to Redfin’s latest analysis. Nearly 46.2% of U.S. home sales included concessions up from 43.1% a year earlier and the highest share on record for May.
Rising mortgage rates, elevated home prices, and economic uncertainty fueled by inflation, job market concerns, and the impacts of the Iran war—have weakened buyer demand, leaving sellers more willing to negotiate.
Why Seller Concessions Are Rising
Redfin reports two main drivers behind the surge in concessions:
- Buyer Leverage: With a surplus of listings and less competition, buyers can negotiate for closing costs, repairs, and upgrades.
- Overpriced Listings: Some sellers, expecting 2021-style demand, price their homes above market levels, making concessions necessary to close sales.
Amanda Peterson, a Redfin Premier Agent in Dallas, explains: “Sellers with older homes or high asking prices are offering concessions to remain competitive. Buyers now have the upper hand, especially in markets where inventory has accumulated.”
Concessions Most Common in the Sun Belt
Sun Belt metros led the nation in seller concessions:
- Nashville, TN: 75.5% of sales included concessions
- Charlotte, NC: 71.4%
- Atlanta, GA: 68.7%
- Phoenix, AZ: 65.6%
- Raleigh, NC: 64.1%
Nashville, May’s biggest buyer’s market, had more than twice as many sellers as buyers. High inventory, combined with rising prices and costs, motivates sellers to offer incentives to attract buyers.
Orlando saw the largest year-over-year increase in concessions, jumping from 38.3% to 58.6%, followed by Phoenix (50.7% → 65.6%) and Nashville (61.8% → 75.5%).
Where Concessions Are Least Common
In contrast, some high-cost or competitive markets saw very low concession rates:
- New York: 2.9%
- San Jose, CA: 5.9%
- San Francisco: 14.9%
- Boston: 26.7%
- Chicago: 27.5%
These areas are primarily seller’s markets or balanced markets, where buyers have less leverage and homes move quickly without concessions.
Price Reductions Add to Incentives
In addition to concessions, about 15.7% of homes nationally had price reductions in May 2026—up from 12.8% a year ago. Combining price drops with concessions provides additional negotiating room for buyers in soft markets.
Declining Concessions in Some Markets
Not all metros saw increases:
- Seattle: Down from 66% to 48.8%
- San Diego: 68.3% → 62.3%
- San Jose: 11.6% → 5.9%
These declines often reflect prior-year highs, leaving less room for additional concessions. Even when concession rates fall, buyers may still benefit from homes selling below the original asking price.
Bottom Line
May 2026 saw nearly half of U.S. home sellers offering concessions, reflecting a shift toward a buyer’s market. Strong inventory, high rates, and elevated costs have increased buyer leverage, especially in Sun Belt metros and other markets where listings outnumber buyers.
For homebuyers, concessions present opportunities to reduce closing costs, request repairs, or negotiate better deals. For sellers, offering concessions has become an essential strategy to attract buyers and complete transactions in a market that no longer favors the seller. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.
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