2025: A Renter’s Market in the Making – What You Need to Know

For 2025 things have moved decisively to the benefit of renters across most of the country. Particularly in the sunbelt markets that we cover in NC and SC. The most desireable and rare properties, especially houses and homes with fences, garages, and outside storage are still doing pretty well. For a lot of other homes, especially new ish construction in the 5-10 year old range rents have fallen dramatically. Often these owners price themselves in line with homes that offer to highly sought out, and relatively rare features only to sit vacant for 30+% of the year.

This article combines our insights with the recent piece by CNBC: 2025 is a renter’s market: Here’s how to take advantage.

Often Homes that at a Glance Appear Equal, See Dramatic Rent Variations for Reasons Landlords Often Misunderstand

So while rents are down dramatically since Q1 2023 in almost all markets (see this article discussing the results from 3 major rent tracking indexes), it’s much more significant for the average home. To combat this issue we recently wrote a lengthy article explaining how much of a financial benefit some features can be these days. That includes something as simple as a fence. (see Why a Rental Property Fence Could be the Best Overall Investment You Make in 2025. Rental Property Fence ROI Analysis and Case Study).

Limited Options Require Great Management Decisions

If you aren’t able to truly set your rental home apart, your options are very limited. In general the goal becomes to maximize net operating income by perfectly balancing rent versus vacancy without compromising tenant quality. These days that means a very solid rate that is usually much lower than mom and pop landlords realize. Trust us on this, and verify that info using the index tracking article linked above.

All of Our Markets are Already Recovering Well

While the details in the CNBC article are accurate in our view, as is often the case main stream media is late to the party. In our NC and SC markets this has been one of the strongest winter markets (Jan to late March 2025) that we have seen in our 20 year history. Rents on some homes have already bounced 10% off of the lows, so renters have to act fast as most leases will be close to market rate again 12 months from now. From there, especially for non-apartment homes that are still in epidemic level supply shortages, we could see pains similar to 2022.

A Closer Look at the Market Shift

Recent insights from industry experts point to a dynamic change in the rental market landscape. According to Daryl Fairweather, chief economist at Redfin, one of the driving factors behind improving rental affordability is a “construction boom” of new apartment buildings that began during the pandemic. This surge in development has added a wealth of new units to the market, easing the pressure on supply and potentially giving renters the upper hand.

The influx of new construction is reshaping the market in several key ways:

These factors combined are tilting the scales in favor of renters, creating what some experts are calling a “renter’s market.” If you’re currently renting or planning to rent this year, you might find that the market conditions offer unique opportunities to negotiate better terms and secure a space that fits your needs.

What This Means for Different Stakeholders

For Renters

If you’re on the hunt for a new home or looking to renew your lease, now might be an ideal time to take advantage of the competitive rental landscape. The construction boom has not only increased the availability of units but also fostered an environment where landlords are more motivated to offer concessions. Here are a few tips for renters:

For Property Owners and Managers

While a renter’s market might sound like a windfall for tenants, property owners aren’t without opportunities. The key is to stay competitive by offering compelling value propositions to attract and retain quality tenants. Consider the following strategies:

For Real Estate Agents and Vendors

This evolving landscape also brings new challenges and opportunities for real estate agents and vendors servicing the rental market. An informed approach and agile adaptation to the changing environment are essential. Here’s what you need to consider:

Navigating Safety and Profit Concerns

While the current trends in rental affordability are promising, it’s essential to approach the market with both an optimistic yet cautious mindset. Safety and profitability remain critical considerations for all parties involved.

For landlords, ensuring that renovations and upgrades do not compromise the structural integrity or safety of a building is paramount. Similarly, renters should not sacrifice safety for the sake of a good deal. Thorough inspections and due diligence are vital steps before finalizing any lease agreements.

Moreover, while the market may be shifting in favor of renters, this does not necessarily imply a risk-free environment. Investment strategies should continue to prioritize long-term stability over short-term gains. Both property owners and service providers need to balance competitive pricing with maintaining a healthy profit margin, ensuring that quality and safety standards remain uncompromised.

Broader Implications for the Rental Market

The current market trends are not occurring in isolation. They are part of a broader economic context shaped by evolving demographics, technological advances, and shifting consumer preferences. The rise of remote work, for instance, has altered the geography of housing demand, with more people seeking rental properties in suburban and rural areas that offer modern amenities and a better quality of life.

Additionally, sustainability has become a critical focus. Both renters and property owners are increasingly prioritizing environmentally friendly practices. New constructions often incorporate green technologies, and this trend is likely to continue, further influencing market dynamics. By aligning with these values, property managers can not only attract a broader audience but also contribute to a more sustainable future.

Conclusion: Embrace the Change and Seize the Opportunity

In summary, the 2025 rental market is showing signs of being particularly favorable for renters, thanks in part to a significant increase in new apartment construction during the pandemic. This surge in supply has led to improved rental affordability, more modern amenities, and a wider range of options for renters. For those in the rental space—whether you’re a tenant, a property owner, a real estate agent, or a vendor—staying informed and adaptable is key.

If you’re a renter, this could be an ideal time to negotiate a lease that better suits your needs, potentially saving money while enjoying a modern living space. For property owners and managers, focusing on value-added services and upgrades can help maintain competitiveness even in a renter-friendly market. And for service providers, this evolving landscape is an opportunity to offer innovative solutions that address the diverse needs of today’s rental market.

Embrace the change, stay informed, and seize the opportunity as the rental market continues to evolve. With the right strategies, all stakeholders—from renters to real estate professionals—can benefit from this dynamic shift in the housing landscape.