[UNITED STATES] As we step into 2025, renters have found themselves in a favorable position. According to housing economists, 2025 is expected to be a “renter’s market,” meaning rental prices are stabilizing and tenants may have more negotiating power than they’ve had in recent years. This shift is due to several factors, including an increased supply of rental properties, cooling housing prices, and broader economic conditions. For renters, this can mean more options, lower costs, and better flexibility.
Here’s how renters can take full advantage of this trend and make the most of the housing market in 2025.
What is a ‘Renter’s Market’?
A “renter’s market” is defined by a surplus of rental properties, which leads to greater competition among landlords to fill vacancies. As a result, rents tend to either stabilize or decrease, and tenants may have more leverage when negotiating lease terms. In contrast, a “landlord’s market” occurs when demand outstrips supply, pushing rents up and giving landlords more power in lease negotiations.
In 2025, experts believe we’re entering a renter’s market. A key reason for this is the deceleration of home price increases. "2025 is a renter’s market, housing economist says — here’s how to take advantage". Mark Zandi, the chief economist at Moody’s Analytics, predicts that the supply of rental properties will rise as more people opt to rent instead of buying homes.
Zandi states, “In 2025, housing markets are expected to cool further, and that will put renters in a better position. As more people decide to rent rather than buy, there will be more units available for lease, giving renters more choice and bargaining power.”
Why 2025 Will Be a Renter's Market
Several macroeconomic and housing market trends are aligning to make 2025 a prime year for renters. Let’s break it down:
1. Increased Rental Inventory
As housing prices remain relatively high and mortgage rates continue to fluctuate, many would-be buyers are choosing to rent instead. This growing number of renters is prompting developers to build more rental units. The influx of new rental properties leads to higher inventory levels, which creates a better environment for renters.
Moreover, many cities are seeing increased construction of multi-family properties. In 2025, this increase in the availability of rental units is expected to shift the balance of power toward renters, as landlords may need to offer competitive prices and more attractive incentives to secure tenants.
2. Cooling Housing Market
The broader housing market is experiencing a cooling period. According to Danielle Hale, the chief economist for Realtor.com, "The housing market in 2025 is expected to see slower price growth, if not outright declines, as interest rates and affordability challenges weigh on homebuyers." When fewer people are buying homes due to financial constraints or economic uncertainty, demand for rental properties increases. This increased demand for rentals, combined with higher supply, helps to create favorable conditions for renters.
3. Rising Renters’ Bargaining Power
With more available rental units and cooling home prices, renters have more leverage when negotiating with landlords. "Renters should be in a better position in 2025, with more housing options available and landlords more willing to negotiate on things like rent prices and lease terms," says Zandi.
Renters could negotiate lower rent, request amenities like parking or storage, or even secure more flexible lease terms—particularly in cities with an oversupply of rental units.
How to Take Advantage of the 2025 Renter’s Market
Renting in 2025 offers unique opportunities to save money, secure more desirable living spaces, and gain flexibility in lease terms. Here are several strategies you can use to take full advantage of this renter’s market:
1. Shop Around for the Best Deals
Since there will likely be more rental inventory, it’s important to take your time and shop around. With more supply, landlords will be eager to fill their vacancies, which can lead to lower rents or additional perks, such as free utilities or months of free rent.
"Renters should be proactive in their search," advises Zandi. "Landlords will be more willing to negotiate with tenants in 2025, so it’s a good time to shop around, compare prices, and see what kind of concessions you can get."
Make sure to check multiple listings and explore different neighborhoods, as the rental market will be highly varied by location.
2. Leverage Your Negotiation Power
In a renter’s market, landlords are more likely to offer discounts or flexible terms to keep their properties occupied. If you find a place that’s a little above your budget, don’t be afraid to negotiate for a better deal.
Some key points you can negotiate on include:
- Rent price reductions (especially if the unit has been vacant for a while)
- Waiving application fees
- Flexible lease terms (e.g., month-to-month lease options)
- Reduced security deposit or other fees
- Inclusion of utilities (gas, water, internet)
Even if a landlord doesn’t drop the price, you may be able to secure some other form of value—whether that’s parking, storage space, or a pet-friendly policy.
3. Consider New Developments
Newly constructed apartment buildings and rental communities often offer initial promotional deals to attract tenants. These can include free months of rent or significant discounts for the first year. While newer buildings may charge higher rents on average, you may still be able to find a great deal in a modern building with updated amenities.
“New properties often offer incentives such as waived rent for the first month or discounts for signing longer-term leases,” says Hale. "Renters should consider these options when searching for a place, as they might be able to save significantly upfront."
4. Be Prepared to Move Quickly
In a renter’s market, rental units may stay on the market for longer periods. However, you should still be ready to act quickly when you find a place that meets your needs. Some desirable units may go quickly if they’re priced well or located in high-demand neighborhoods.
Having your rental application, references, and credit history prepared can help you secure the place faster. In a competitive market, being prepared will allow you to act swiftly and possibly gain an edge over other renters.
5. Take Advantage of Rent-Controlled Units (Where Available)
In some regions, rent control laws limit how much a landlord can increase rent. These units can offer considerable savings over time. If you live in or are moving to a city with rent control policies, it’s worth looking for rent-controlled apartments.
Cities like New York, San Francisco, and Los Angeles have long-standing rent control regulations. However, even in non-rent-controlled areas, the availability of more rental units in 2025 might put pressure on landlords to keep rents stable or offer more incentives for new tenants.
2025 is shaping up to be a great year for renters, with a wealth of new opportunities on the horizon. From more available units to greater bargaining power, tenants are in a position to negotiate better deals and find their ideal living space at a more affordable price.
As Mark Zandi notes, “Renters should expect more options and potentially lower rents in 2025. The market will be more favorable for those who are ready to act quickly and negotiate well.”
So, whether you’re a first-time renter or a seasoned tenant looking to move, make sure to leverage this renter’s market to your advantage. Shop around, negotiate terms, and consider newer properties and incentives to secure the best deal possible. The market may be shifting in your favor—take full advantage of it!
WhatsApp
Instagram
Threads
