Across much of the country, rental housing is in a very different place than it was just a couple of years ago. After a historic run-up in demand and rents, vacancies have ticked up, concessions are back in a big way, and operators are competing harder for every qualified household.

According to Census data summarized by industry analysts, the national rental vacancy rate edged up to roughly 6.9% in late 2024, up from about 6.6% a year earlier, with some Sunbelt and Midwestern metros posting double-digit rental vacancy rates. At the same time, a robust construction pipeline has delivered more than 500,000 new apartments in 2024 alone, putting additional pressure on existing assets.

To fill those units, many operators are turning to discounts. Fannie Mae's multifamily commentary notes a rise in properties offering concessions as new supply comes online, and Zillow reported that roughly one-third of property managers were offering lease incentives by mid-2024, with concessions attached to more than half of listings in several major metros. More recent data show that the share of listings on Zillow with a concession has climbed above 37%.

In short: we're giving away a lot of rent to win (or keep) residents.

At the Pet-Inclusive Housing Initiative (PIHI), we believe there's a better lever to pull—one that aligns with resident demand, strengthens communities, and improves the bottom line: rethinking how we treat pets.

Pets are already your prospects

Pets are not a niche amenity. They are the norm.

Research from animal-welfare organizations finds that about 72% of renters already have pets, and broader national surveys show that nearly half of U.S. households have dogs and roughly a quarter have cats. PIHI's own survey work with renters and property managers shows just how deeply people feel about these animals: 92% of renters and 93% of property managers say pets are important members of the family.

When renters shop for a home, pet policies are often the first filter—not an afterthought. In one national survey of renters, more than 80% said pet policies played a major role in where they chose to live, and nearly 90% reported having a pet; even among renters without pets today, over half planned to get one within a year.

That's the demand side. On the supply side, the story is more complicated. 

The "pet-friendly" illusion

 On paper, it looks like the industry has embraced pets. PIHI's Pets & Housing Data: 2025 Edition finds that roughly 79% of rental properties say they allow pets. But when you look more closely at breed and weight restrictions, limits on number of pets, and layers of nonrefundable fees and pet rent, a very different picture emerges.

Across the national rental stock:

• Less than 10% of properties qualify as truly pet-inclusive—meaning no breed or weight restrictions and reasonable or no pet fees.
• Earlier PIHI research found that while about three-quarters of owners/operators consider their properties "pet-friendly," more than 70% of renters say pet-friendly housing is hard to find.
• Follow-up work with over 500 pet-owning renters suggests the problem has grown: more than 83% now report that pet-friendly housing is hard to find.
  
  

These gaps have real consequences for both people and animals. More than 80% of dog owners report difficulty securing housing, and many say they've had to move, rehome a pet, hide them, or misclassify them as emotional support animals to stay housed. Academic research on shelter intake confirms that "housing-related" reasons are a major driver of relinquishment, especially for dogs.

For operators, this disconnect represents risk and opportunity. When so many households need homes for their families—including the four-legged members—policies that shut out or heavily penalize pets are increasingly at odds with the market.

The retention and revenue upside of saying "yes"

The business case for welcoming pets has been remarkably consistent across PIHI's research and independent industry studies:

• Residents in pet-friendly housing stay about 21% longer than those in non-pet-friendly housing—roughly 10 additional months of residency on average.
  
  
• 83% of owners and operators report that pet-friendly vacancies fill faster, and nearly 80% say those units are easier to lease.
  
  
• Recent PIHI trend analyses confirm that pet-inclusive policies (not just pet-friendly branding) are strongly associated with higher resident retention and reduced turnover costs.
  
  

When you overlay those findings on today's environment of rising vacancies and deeper concessions, the math gets compelling very quickly. Instead of offering a free month to every new lease, operators can:

• Attract a larger pool of qualified applicants by easing or eliminating arbitrary breed and weight caps.
  
  
• Reduce move-outs by making it easier for current residents to keep their pets through life changes—adding a second dog, adopting an older cat, or staying after a job or family shift.
  
  
• Lower marketing and turn costs thanks to longer average length of stay and faster lease-ups on pet-inclusive units.
  
  

In other words, pets are not just a "feel-good" amenity—they're a powerful economic stabilizer.

Our friend Jamin Harkness of The Management Group (TMG) in Atlanta, Georgia agrees. TMG instituted pet-inclusive policies (no breed or size restrictions) on all of their properties over five years ago, and haven't looked back. According Jamin, the decision to remain pet-inclusive is continually reinforced – and compelling – for the following reasons:

• Expands the qualified prospect pool immediately
  Breed restrictions, weight limits, and pet rent disqualify millions of renters upfront. By removing barriers, we simply have more people who can say "yes" to our communities.
• Offsets concessions without racing to the bottom
  Instead of leading with deeper discounts that reset market expectations, we lead with culture and lifestyle — protecting long-term revenue integrity.
• Aligns with how people actually define "home"
  For many, pets are family. If a prospect can't bring a family member, they'll keep looking — no matter the rent concession. We remove that objection entirely.
• Hard for competitors to replicate
  Anyone can offer one month free. Few operators are willing to remove pet rent, breed bans, and weight limits. That makes this a defensible differentiator, not a gimmick.

Why this moment matters

So why is now the right time to revisit pet policies?

1. Competition is fierce. In markets where concessions are trending up and rent growth has flattened or turned negative, pet-inclusive policies are a low-cost, high-impact differentiator. When every competitor is offering "one month free," being the community that says "yes" to the whole family stands out.
   
   
2. Residents are less willing to pay premiums for the basics. When the market was tight, pet fees, deposits, and rent could climb almost unchecked. Today, many households are more price-sensitive, and punitive pet charges can be a deciding factor in choosing—or leaving—your community.
   
   
3. The workforce (and their pets) are more mobile. Remote and hybrid work have decoupled many households from specific geographies, giving pet-owning renters more options. Operators who reduce barriers can win households who might have otherwise looked elsewhere.
   
   
4. The data and tools have caught up. We know far more today about the real (and often exaggerated) risks around pet damage and liability. Modern pet assessment programs and risk-management tools, training resources, and community partnerships give operators better ways to manage concerns without blanket bans.
   
   

For pet-inclusive housing, this moment is a rare alignment: a softer rental market and a growing evidence base that pets are good for people, communities, and NOI.

From "pet-friendly" to pet-inclusive: Practical starting points

Every portfolio is different, but PIHI's work with operators across the country suggests a few high-impact moves:

Most "no dogs over 25 pounds" rules are legacy policies, not risk-based decisions. PIHI's research and industry experience show that behavior, individual assessment, and engaged ownership are better predictors of outcomes than size or breed labels.

Consider:

• Removing blanket breed lists and replacing them with behavior standards and individual assessments.
  
  
• Raising or eliminating weight caps, particularly in larger-unit floor plans.
  
  

Stacked application fees, nonrefundable pet deposits, and monthly pet rent quickly add up—especially when residents already face steep entry costs.

Options include:

• Converting nonrefundable "pet fees" into refundable deposits tied to actual damage.
  
  
• Capping total upfront pet costs.
  
  
• Eliminating monthly pet rent in favor of modest, transparent risk-management tools (such as pet assessment programs or insurance products where appropriate).
  
  

Ambiguity drives anxiety—for residents, staff, and animal-welfare partners.

• Publish pet policies in plain language, with a clear definition of what "pet-inclusive" means in your communities.
  
  
• Train on-site teams to apply policies consistently and to work with residents on solutions when issues arise, rather than defaulting to "no."
  
  
• Build relationships with local shelters and rescue groups; they can be invaluable partners in keeping people and pets together.
  
  

Treat pet-inclusive changes the way you'd treat any operational initiative:

• Track occupancy, length of stay, and renewal rates for residents with pets vs. those without.
  
  
• Compare marketing and turn costs before and after policy changes.
  
  
• Monitor incident rates and damage claims—and compare them to your assumptions.
  
  

PIHI's earlier analysis suggests that, for many communities, the financial upside of pets—longer tenancies and faster lease-ups—more than offsets the costs associated with occasional damage or disputes.

A strategic advantage hiding in plain sight

As an industry, we have spent the last few years talking about economic occupancy, revenue optimization, and resident experience. Pets sit at the intersection of all three.

In a cooling rental market, every operator is looking for smarter ways to reduce vacancy loss and stand out without racing to the bottom on price. Pet-inclusive housing is one of those rare strategies that:

• Expands your addressable market.
  
  
• Deepens loyalty and length of stay.
  
  
• Builds stronger, more connected communities.
  
  
• Keeps families—human and animal—together.
  
  

At the Pet-Inclusive Housing Initiative, we're here to help operators use this moment wisely. The concessions you offer this leasing season will expire after 12 months. The reputation you build as a truly pet-inclusive operator will keep paying dividends—fur and all—for years to come.