Rising seller concessions
As the United States’ growing uncertainty and instability met the affordability crisis, a 44.4% share of real estate sales came with seller concessions in 2025’s first quarter.
That increased over five percentage points from the year before while some housing markets had concessions on more than half of their home sales.
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In the first quarter of 2025, 44.4% of home sales came with seller concessions, according to Redfin. That share grew annually from 39.3% and approached the record high of 45.1% set in 2023. Redfin began tracking this data in March 2019.
Concessions can be anything the seller gives the buyer to lower the home purchase cost; including interest rate buydowns, repairs, HOA dues, and closing fees — but not the listing price. The lack of affordability, increasing inventory, and the country’s overall instability drove seller concessions higher to begin the year.
“Buyers used to ask for concessions to cover little things like repairs. Now they’re negotiating concessions so they can afford to buy a home,” said Chaley McVay, a Redfin agent in Portland, Ore. “A lot of sellers are offering money for mortgage-rate buydowns, and I recently had one seller cover seven months of HOA fees for the buyer. Sellers are feeling nervous because a lot of them bought at the top of the market in 2021 and 2022, and will now be re-buying at a higher mortgage rate. They’re worried about net proceeds. That’s why I recommend my buyers ask for concessions instead of a lower sale price—it can be a win-win because then the buyer is catching a break and the seller doesn’t have to go below the price they had in their head.”
Among the 24 major metropolitan areas Redfin analyzed, Seattle led the nation with a 71.3% concession rate in 2025’s opening quarter. Next came 63.9% in Portland, 61.5% in Atlanta, 60.7% in San Diego, and 59.2% in Denver. New York had the lowest share at 5.5%, then came 14.9% in San Francisco, 16.7% in San Jose, Calif., 18.7% in Boston, and 26.4% in Chicago.
Seattle also topped the list by the largest annual change in concession share, ballooning 34.9 percentage points. Portland also followed with a 14.2-point increase, ahead of 11 points in Los Angeles, 10.6 points in San Jose, and 6.2 points in Houston.
New York decreased the most, falling 15.7 points from Q1 2024. Behind the Big Apple were drops of 13.1 points in Miami, 10.9 points in San Antonio, 9.2 points in Tampa, Fla., and 3.5 points in Phoenix.
Additionally, 21.5% of first quarter home sales sold below asking and had a concession, up from 18.5% year-over-year. Another 16.2% had a price cut and a concession (13% in Q1 2024), while 9.9% had a price cut, concession and sold below asking (8% the year prior).
The table below shows the metro areas in order by Q1 2025 concession rates, according to Redfin:
| U.S. metro area | Share of home sales with concession: Q1 2025 | Share of home sales with concession: Q1 2024 | Year-over-year change |
| Seattle, WA | 71.3% | 36.4% | 34.9 ppts |
| Portland, OR | 63.9% | 49.7% | 14.2 ppts |
| Atlanta, GA | 61.5% | 56.9% | 4.7 ppts |
| San Diego, CA | 60.7% | 61.3% | -0.5 ppts |
| Denver, CO | 59.2% | 59.7% | -0.5 ppts |
| Los Angeles, CA | 56.1% | 45.1% | 11.0 ppts |
| Sacramento, CA | 52.5% | 48.1% | 4.4 ppts |
| Las Vegas, NV | 51.9% | 47.9% | 4.0 ppts |
| Phoenix, AZ | 51.2% | 54.7% | -3.5 ppts |
| Riverside, CA | 51.2% | 48.5% | 2.7 ppts |
| Dallas, TX | 49.3% | 50.0% | -0.7 ppts |
| Houston, TX | 46.0% | 39.8% | 6.2 ppts |
| Austin, TX | 45.3% | 44.5% | 0.7 ppts |
| San Antonio, TX | 44.4% | 55.4% | -10.9 ppts |
| Overall U.S. | 44.4% | 39.3% | 5.1 ppts |
| Baltimore, MD | 41.4% | 43.9% | -2.5 ppts |
| Washington, D.C. | 39.2% | 39.7% | -0.5 ppts |
| Tampa, FL | 33.9% | 43.1% | -9.2 ppts |
| Miami, FL | 33.8% | 46.9% | -13.1 ppts |
| Philadelphia, PA | 27.6% | 24.8% | 2.8 ppts |
| Chicago, IL | 26.4% | 23.0% | 3.4 ppts |
| Boston, MA | 18.7% | 12.8% | 5.9 ppts |
| San Jose, CA | 16.7% | 6.1% | 10.6 ppts |
| San Francisco, CA | 14.9% | 13.5% | 1.4 ppts |
| New York, NY | 5.5% | 21.2% | -15.7 ppts |
Advice for home buyers
With power balances shifting in the housing markets around the country, it’s a good time for prospective home buyers to negotiate.
Of course, it’s important to make sure you can comfortably afford a property you’re looking to buy, get good advice, shop for your mortgage rate, and check for what financial assistance you may qualify for.
If you’re ready to become a homeowner, reach out to a local mortgage lender to get started.
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