BiggerNews: Renters Regain Control and a New Rent Price Forecast for 2025

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Investing, Business

4.8 • 16.6K Ratings

🗓️ 20 September 2024

⏱️ 33 minutes

🔗️ Recording | iTunes | RSS

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Summary

Rent prices have come down to earth after their meteoric growth of 2020 - 2022, but what will they do in 2025? Will we continue to see slow (or no) rent price growth, or could lower interest rates push more households to form and demand to jump? With so much multifamily housing supply and the Fed’s recent rate cut decision, we’ve got a lot to unpack on this BiggerNews episode. Thankfully, we have Apartment List’s Chief Economist, Igor Popov, to help us. We’re talking about rent prices: where they are, where they’re going, and what’s impacting them in 2024 (and into 2025). Unsurprisingly, we’ve got a lot of multifamily supply—apartments are giving huge concessions to lease up. But what if we told you we were oversupplied AND undersupplied at the same time, and in a few years' time, demand could heat up again? Igor gives a rare 2025 rental market forecast, his take on what’s impacting rent growth, and whether the “oversupply” of multifamily is hurting single-family rental investors’ chances to get higher rents. In This Episode We Cover: A 2025 rental market forecast and whether we’ll see rents grow, decline, or flatten next year The areas where all the rental money is moving to (things have REALLY changed) More renter control as the oversupplied multifamily market searches for tenants Why the housing market is currently in a dangerous flood-drought combination Will sluggish multifamily rent prices push single-family rents down with them? And So Much More! Links from the Show Join BiggerPockets for FREE Let Us Know What You Thought of the Show! Apartment List Research Invest in Turnkey Properties with REI Nation Grab Dave’s Newest Book, “Start with Strategy” Find an Investor-Friendly Agent in Your Area See Dave at BPCON2024 in Cancun! What Happens to Rent Prices When 1,000,000 New Units Come Online in 2024? Connect with Dave (00:00) Intro (03:55) Anything But “Normal” Rent Prices (08:54) Money is in Suburbs (12:59) More Renter Control (17:00) Multifamily vs. Single-Family Rents (18:09) Lots of Supply, Not Enough Supply (23:08) 2025 Rent Prediction (25:52) Learn More from Igor! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1020 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	As investors, rent prices and rent growth are some of the first things that you look at when you're analyzing a deal, considering a market or just trying to figure out what kind of investments you're going to make.
0:11.0	And for a long time, rent growth was relatively stable and predictable, but not for the last couple of years.
0:18.0	These days, we have to pay much closer attention to rent trends with all the supply that is going on, all the
0:25.2	changes to demand in the marketplace, if we want our investments to perform to their
0:30.3	peak potential, we need to understand these things.
0:33.6	And we can't just look at one top line national number.
0:36.5	We have to look at the regional and market trends and understand really in our subsection,
0:42.2	our niche of the real estate investing world, what is happening because rent plays such a huge role in the performance of our investors.
0:49.4	So today that's what we're going to be digging into. Hey, BiggerPockets listeners, it's Dave here for weekly bigger news episodes,
1:02.0	and it's been sort of a while since we talked about what is going on
1:05.7	with Rent trends.
1:07.0	So I wanted to bring on an expert
1:09.9	to help us understand what changes have been going on, how things are moving as we get
1:14.3	towards the end of 2024 here and so we're bringing on Igor Popov he's the chief
1:19.5	economist with apartment list they produce some really interesting insightful reports so I'm eager to bring on Igor to talk about first and foremost the I'll keep it short but recent history of rents and what's been going on over the last couple of years
1:34.8	how the recent boom in multifamily supply has impacted rents and what's happening today in
1:41.2	2024 that will turn our attention to the future and talk about how as supply
1:46.1	peaks and new construction stops coming online in the next couple of years, like, what is going to happen
1:51.6	to rents then? and because we're
1:54.0	recording here on September 18th and just like an hour ago we heard that the fed
1:58.7	cut interest rates by 50 basis points we will get into that a little bit, but to be honest, still
2:05.0	processing all of that information.
	...

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