The Secret to Finding the Best Deals in Today’s Rental Market
By Carissa Kristoff
Realtor, Berkshire Hathaway HomeServices Select Properties
With nearly two decades in residential real estate, I’ve seen the rental market evolve through various cycles. Recently, I’ve noticed several shifting trends that are starting to shape the market and influence rents. Whether you’re a tenant, landlord, or investor, understanding these dynamics is crucial for navigating the future of rental properties.
The Current State of the Rental Market
As we head into 2025, the rental market is expected to experience a mild annual decline in median asking rents. This decline is influenced by a variety of factors, particularly the influx of new multi-family supply and shifting demand dynamics. While rents are still relatively high compared to historical norms, the market is stabilizing as more rental units come online.
The Role of New Multi-Family Supply
One of the primary drivers behind the predicted decrease in median asking rents is the increase in new multi-family housing supply. Over the past few years, developers have been focusing on meeting the demand for rental housing, particularly in urban and suburban areas. As more units become available, this larger supply is putting downward pressure on rent prices.
While this is good news for renters looking for more options, it does have an impact on landlords who have become accustomed to the high rent prices we’ve seen in recent years. New developments are offering more competitive pricing, which could encourage tenants to look for better deals in these newly built properties.
Shifting Demand Dynamics
Demand for rental properties is also changing, and this is impacting the rental market. Historically, we’ve seen demand driven by factors like proximity to jobs, schools, and transportation. But now, more people are opting for remote work, which has opened up a wider range of options for renters.
In addition, the rise of hybrid work models has led to shifts in where renters want to live. Suburban areas and smaller cities are seeing more interest as people prioritize larger homes, more green space, and more affordable living costs. These factors, in combination with the increased supply of rental properties, are leading to a gradual decline in rents.
Market Predictions: What’s Coming in 2025
While the rental market will see a mild decrease in asking rents, this does not mean that all areas or property types will be affected equally. For example, luxury rentals may not see as significant a drop, as their prices remain high due to demand from affluent renters. On the other hand, more affordable housing options could see sharper declines in rent prices as more units become available.
It’s also worth noting that demand could shift again depending on economic factors, such as employment rates, inflation, and consumer confidence. However, as it stands, a mild correction is expected in the rental market over the next year.
What This Means for Renters and Landlords
For Renters:
- More Choices: With more multi-family units coming onto the market, you’ll have more options to choose from, especially in previously high-demand areas.
- Negotiating Power: Renters may have more room to negotiate rent prices, particularly if a property has been on the market for a while.
- Keep an Eye on Pricing: While rents may be trending downward overall, it’s important to stay informed about local trends in your specific area.
For Landlords:
- Competitive Pricing: As more properties come online, landlords may need to reconsider their pricing strategies to stay competitive.
- Higher Vacancy Risk: If you own a rental property in a highly competitive market, you could experience more turnover or longer vacancy periods.
- Focus on Value-Add Features: To attract quality tenants, consider making improvements to your properties that set them apart, such as offering unique amenities or ensuring the property is well-maintained.
Conclusion: A Changing Market, A Steady Approach
While the rental market is undergoing some changes, it’s still a great time to be active in real estate—whether you’re renting, leasing, or investing. As the dynamics shift and rents adjust slightly downward, it’s important to stay informed and strategic. Whether you’re a renter looking for a deal, a landlord aiming to remain competitive, or an investor focused on long-term returns, understanding these shifts will help you navigate the market with confidence.
In the end, success in real estate, just like sailing or skiing, requires adaptability and staying ahead of the curve. Let’s keep navigating these changes together!
About Carissa Kristoff
With 19 years in residential real estate, Carissa Kristoff has built a reputation for providing clarity and confidence throughout every stage of buying, selling, or leasing a home. As part of the Berkshire Hathaway HomeServices Select Properties team, she collaborates with seasoned brokers, agents, and administrators to secure optimal outcomes for her clients. Carissa’s work ethic is matched by her commitment to enjoying life: she’s an avid sailor, snow skier, and certified yoga instructor. She also brings a hands-on approach to homeownership, thanks to her background running a residential cleaning and management company, where she honed her DIY skills in gardening, painting, and decorating. Whether guiding a first-time homebuyer or a seasoned investor, Carissa leverages her well-rounded experience to simplify the process and deliver top results.
