Great News for Landlords: Rental Prices Expected to Rise in 2025 and 2026
The rental market is poised for a significant shift in favor of landlords, with rental prices expected to climb in 2025 and 2026. According to real estate analytics firm CoStar Group, the current oversupply of housing is being rapidly absorbed, setting the stage for increasing rental rates.
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A Post-COVID Market Correction
After a post-pandemic construction boom led to an influx of multifamily housing units, many markets saw an oversupply that temporarily kept rental prices in check. However, this trend is reversing as demand continues to stabilize and available inventory is gradually being leased up.
Key Market Indicators Favoring Landlords
Several critical market factors point to rising rental prices in the near future:
- Vacancy Rates Are Dropping – With more renters securing leases, the number of available units is shrinking, leading to a tighter market.
- New Construction Is Slowing – Developers are facing higher costs and longer project timelines, meaning fewer new units will enter the market in the coming years.
- Supply and Demand Dynamics Are Shifting – If demand remains steady, the market could quickly transition from oversupply to undersupply, causing rental prices to rise faster than usual.
What This Means for Landlords
As the rental market continues to shift, landlords may find themselves in a stronger position to set competitive rental rates and experience lower vacancy periods. With long construction timelines limiting the addition of new supply, the advantage remains with property owners who are well-positioned to benefit from increased demand.
How True Property ManagementCan Help
At True Property Management, we specialize in helping landlords maximize their rental income while minimizing vacancies. Our expert team provides comprehensive property management services, including tenant screening, rent optimization, maintenance coordination, and legal compliance. We stay ahead of market trends, ensuring that your properties remain competitive and profitable.
Now is a great time for landlords to assess their rental pricing strategies and prepare for a market that favors property owners. Let True Property Management help you navigate these changes and take full advantage of the rental market’s upward trajectory!
Kurt Galitski
Principal, Broker
(949) 688 7705 | DRE #: 01348644