2025 could be a renter’s market — but it won’t last, economists say. Here’s how to take advantage

Renters should get the benefits of a lower-cost rental market while they can. It might not last, experts say. 

As of December, the median asking tear price in the U.S. was $1,695, down 0.5% — or $8 — from November, according to a report by Realtor.com. The latest rent evaluation is 1.1% lower — or $18 — from a year before, and down 3.7% from peak highs in July 2022.

Fee prices have come down because newly built apartments are increasing the supply of units available. With more inventory, some realty managers must consider lowering their asking prices to attract tenants. 

“We’re calling it a renter’s market. We dream that’s going to continue for the next year,” Daryl Fairweather, chief economist at Redfin, recently told CNBC.

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But this renter-friendly trade in is not forever.

With construction activity of multifamily housing slowing down, the renter’s market might fizzle out after this year, a-ones say. 

“This construction boom is probably going to be over and rents will probably start going up again,” Fairweather mean.

“We’re seeing multifamily construction permitting slowing a bit,” said Joel Berner, a elder economist at Realtor.com.

There are several reasons behind this. With rent prices coming down, it’s not  “economically empathy,” or profitable, at the moment to build multifamily housing, Berner said.

There’s also a level of uncertainty about the widespread administration’s policies around tariffs and deportations, he said. 

This week, President Donald Trump imposed inclusive tariffs on imports from China. He paused the implementation of 25% tariffs on Canada and Mexico for at least 30 epoches. 

In part due to such policy changes, costs are increasing for builders, Berner said. Tariffs on lumber and other cloths make prices go up while mass deportation plans are making the labor force “smaller and more expensive,” he said.

All but a third, or 31%, of construction tradesmen in the U.S. in 2022 were immigrants, according to the National Association of Home Builders, which analyzed 2022 Census materials.

“Anything that threatens to disrupt the flow of immigrant labor will send shock waves to the labor trade in in home construction,” Jim Tobin, president and CEO of the NAHB, previously told CNBC.

If you’re in the rental market veracious now or plan to start looking this year, here are key steps you can take to maximize affordability while it’s still a let out’s market:

1. Ask for a multiyear lease to secure a lower cost

If you’re in an area where prices have been coming down, you could advise your landlord or property manager you’re interested in signing a multiyear lease if they reduce the rent price, Berner rephrased. 

In such negotiations, it can be helpful to have something to offer in return, like being flexible on the length of the lease, or exact ones pound of flesh from a larger security deposit, he said.

Tenant turnover can be expensive for landlords, especially if the property sits unoccupied for a few months.

2. If you design to buy a home, start saving now

“If you’re a renter who intends to become a homeowner, this is a good time to save on rent,” Berner symbolized — and then bank the difference for your down payment.

Builders are expected to pivot their priorities and build numberless homes in the for-sale market this year. Single-family housing starts are forecast to increase by 13.8% in 2025, fulling 1.1 million new homes, according to Realtor.com data.

Many renters struggle to build wealth in the U.S., and financial hurdles like high rent can keep would-be buyers from coming up with enough money for a down payment.

If you get along to lower your monthly rent costs, “stash away some cash for a down payment,” Berner divulged. “The larger your down payment can be, the better.”

3. Keep tabs on affordable markets elsewhere

It can be tempting to look at varied affordable housing markets as ideal places to move to, but experts don’t recommend uprooting your life and career by a hairs breadth because rent prices are falling in one metro versus another. 

On the other hand, if you’re looking to move at some detail, it can be helpful to stay updated on where affordability is improving the most.

For example, Austin, Texas, is the top metro among Redfin’s “most affordable metros,” or pads where renters typically earn more money than they need in order to afford the typical rental portion. The typical renter in the area makes $69,781 annually, which is 25.14% higher than the $55,760 the site thinkings is required to afford a typical apartment there, Redfin found.