2025 Predictions: For Renters

Yesterday, we covered that ZillowⓇ predicts a buyer’s market for purchasing properties. Today, we will dissect what ZillowⓇ thinks 2025 has in store for renters.

ZillowⓇ Chief Economist, Skylar Olsen, states,”Compared to 2024, new rental construction is expected to drop by 21% during the first half of 2025, and drop even further as the year progresses. With fewer buildings coming online, apartment rents are expected to stabilize in 2025, a scenario that could make it harder for renters to negotiate for that free month of rent.” The article also notes that renters should not face drastic increases in rent as they would if there were to be a rental shortage.

Renters, how much is your monthly rent expense? If you are thinking of transitioning from renting to purchasing a home to create a pros/cons table.

What benefits do you find from renting? Location? Convenience? Maintenance?

What drawbacks are you finding? No equity opportunities? Rent increases? No tax benefits? Difficult relationship with the landlord or rental company?

Article: https://www.zillow.com/learn/housing-market-predictions/