Weekly Update: BTR - Rented in 24 Days
David Howard, CEO of the National Rental Home Council, discusses key challenges and trends in the single-family rental housing industry, highlighting the critical issue of housing supply shortage and the growing importance of build-to-rent communities as a potential solution. Howard explains how institutional investors are innovating in the rental space while addressing common criticisms, emphasizing their role in providing quality housing options and investing in property improvements.
According to Yardi Matrix's latest report, national apartment rents showed moderate growth with a $5 increase to $1,736 in April 2025, though year-over-year growth declined to 0.9%, with Northeast and Midwest markets performing strongest while Sun Belt markets experienced negative growth. Despite record-high deliveries putting downward pressure on rents, strong job growth and limited homeownership transitions have helped maintain healthy absorption levels in the rental market.
Based on the article, recent trade policy changes and economic uncertainty are affecting the fix-and-flip housing market in 2025, with 45% of flippers indicating they would reduce renovation spending if material costs increased by 10%. Flippers' optimism has declined notably, with expectations for lower price appreciation in most regions, though local housing supply conditions will ultimately determine whether higher costs can be passed on to buyers or must be absorbed through lower profit margins.
The U.S. housing market is experiencing several significant developments, including a homeowners insurance crisis driven by climate-related disasters and HUD's announcement of over $1.1 billion for affordable housing. The industry is also seeing regulatory changes with NAHB submitting deregulatory recommendations to OMB and a decline in private residential construction spending in March.
Based on the news article, rent prices continue to rise amid ongoing inflation and low housing inventory, with typical asking rents reaching $2,024 in April 2025, representing a 3.4% increase compared to the previous year according to Zillow data. While the pace of rent increases has slowed from the major spikes seen in 2022, prices remain significantly higher than pre-pandemic levels, with affordability being a major challenge for many renters across the United States.
A growing trend in metro Atlanta and across the United States involves developers building entire neighborhoods specifically for rental purposes rather than home ownership, with over 100,000 build-to-rent homes currently under development nationwide. These properties, like Sugarloaf Landing in Lawrenceville, offer maintenance-free living with high-quality construction, though some critics worry this trend could negatively impact the overall housing market.
The U.S. multifamily real estate market is showing signs of normalization in May 2025, despite ongoing economic uncertainties, with investors remaining active and optimistic about future opportunities in the sector. Population growth reached 0.9% in 2024, the fastest rate since 2008, with particularly strong growth in markets across Texas, Florida, and the Carolinas.
Smaller cities in the Rust Belt and Southern regions are experiencing stronger rent growth compared to Sun Belt markets, with Allentown, PA leading at 3.8% year-over-year growth while previously hot markets like Austin are seeing significant declines, dropping 5.8%. Looking ahead, Rust Belt and Northeast cities like Rochester and Syracuse are projected to lead rent growth over the next five years as renters seek more affordable options.
According to Zillow data, rental prices have significantly outpaced wage growth since the pandemic began, with typical asking rents reaching $2,024 in April 2025, up 3.4% year-over-year, while median household income has grown at a slower rate of 22.5% since April 2020. This disparity is particularly pronounced in major metropolitan areas like New York City, where renters now need to earn over $100,000 annually to afford typical rental properties.