BiggerPockets Daily Rent Prices Grow Slow But Steady Nationally While Other Markets Struggle
May 17, 2025
Rents have seen a steady increase for three consecutive months, but a dip in demand raises some eyebrows. Washington, D.C. has experienced a record 25% jump in active listings, largely influenced by federal layoffs. The podcast dives into how D.C.'s rental trends might signal shifts in the national housing market. It also discusses the factors driving these changes, including regional dynamics and economic influences, while introducing the notion of side hustles in real estate investment.
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Apartment Oversupply Pressures Rents
- High vacancy rate (7%) reflects a supply overhang from historic apartment construction peaking in 2024.
- This excess supply will likely continue to suppress rent growth for several years.
Slow But Steady Rent Growth
- National rent prices rose modestly by 0.5% month-over-month in April 2025, marking three consecutive months of increase.
- Despite this, year-over-year rent growth is slightly negative at -0.3%, indicating early signs of softening market momentum.
D.C. Market Shows Federal Impact
- Washington D.C. housing market faces a surge in active listings up 25%, driven by federal layoffs impacting the area's economy.
- Despite increased supply, strong demand keeps median home prices rising and homes selling faster than the national average.