BiggerPockets Daily Rents Are Falling—But For How Long? The 2025 Rental Market Outlook
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Jan 30, 2025 Dive into the latest rental market trends as national median rents drop for the sixth month in a row. Discover the rising vacancy rate hitting 6.9%, particularly in Sun Belt cities like Austin and Denver. Explore the surprising rent growth in the Midwest and consider how the Fed's rate cuts might influence future prices. With nearly 800,000 new multifamily units in the pipeline, is a turnaround on the horizon? Join the discussion for valuable insights tailored for renters, investors, and landlords!
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National Rent Trends
- National rents declined for six months, down 0.2% in January 2025 to $1,370.
- Despite the decline, rents remain 20% higher than pre-pandemic levels (2019).
Supply and Vacancy Rates
- Increased apartment construction and decreased demand have led to lower rent prices.
- The national vacancy rate hit 6.9% in January 2025, the highest since 2017.
Vacancy Anecdote
- Matt Mir observed many new, mostly empty "luxury" apartment buildings in Florida and North Carolina.
- A friend in Durham, NC, rented a "luxury" apartment for $1,200, below market value due to high vacancy.