Hey there,

Thinking about renting out your property? The rental market has been particularly interesting lately, and I wanted to share some key information from recent reports by Zillow Research that could really impact your decisions. Here’s a breakdown of where the market stands and what to expect in the coming years.

Table of Contents

• National Rental Market Trends

• Utah Rental Market Trends

• Multi-Family vs. Single Family

• What to Expect in 2025 and Beyond

• Action Steps for Property Owners

• How I can Help

National Rental Market Trends

The rental market has split into two distinct stories:

1. Single-Family Homes:

   • Rents rose +4.4% year-over-year as of December 2024.

   • High mortgage rates and upfront costs are pushing would-be buyers to rent single-family homes, keeping demand robust.

2. Multifamily Units (Apartments):

   • Rents grew +2.4% year-over-year.

   • A surge in new apartment construction has increased vacancies, leading landlords to offer concessions (e.g., free rent) in 41% of listings.

Utah Rental Market Trends

1. Single-Family Homes:

   • Rents rose +2.7% year-over-year as of December 2024.

2. Multifamily Units (Apartments):

   • Rents grew +0.2% year-over-year as of December 2024.

Multi-Family vs. Single Family

• Single-family homes are in high demand due to their space and privacy, but construction hasn’t kept pace. This scarcity has driven rents 40.6% higher since 2019.

• Multifamily units face softer growth, but concessions and rising supply mean renters have more negotiating power. Still, rents are 26.2% higher than pre-pandemic.

What to Expect in 2025 and Beyond

• If you are thinking about renting out your property, here are some key things to consider:

  • Single-family rental properties are likely to stay in high demand, especially since there is not a lot of new construction, and potential buyers are facing high mortgage rates. This means you might be able to command higher rental rates, depending on where your property is.

  • Multifamily rental properties may see slower growth because of increased construction and concessions.

  • Rent concessions in the multifamily market are likely to continue throughout 2025.

To sum it up, the rental market right now appears to favor single-family homes due to high demand from potential buyers and limited supply, which results in higher rental rates for those types of properties. The difference between single family and multifamily rentals is the largest it's been since 2018.

Action Steps for Property Owners

1. Evaluate your pricing: Adjust rents to match current market rates—especially if you own a single-family home in high-demand areas.

2. Consider upgrades: Energy-efficient appliances or smart home tech can justify higher rents.

3. Leverage concessions: For multifamily units, offering a free month’s rent or waived fees can reduce vacancies.

How I can Help

If you’re thinking about renting out your property, but it all sounds stressful, I offer free rental consultation to all my clients. This includes best practices on how to:
 ✅ Analyze your home’s rental potential and evaluate market rent.
 ✅ Review lease agreements and tenant screening practices to ensure you get high quality tenants.
 ✅ Stay ahead of shifting trends.

📞 Schedule a free consultation to craft a strategy tailored to your goals. Again, I do this free of charge.

Here to serve,