Orphe Divounguy of Zillow reports that nearly 50% of U.S. renter households are rent-burdened—spending over 30% of their income on rent—with disparities tied closely to race, gender, marital status, and age. Women-led households, especially those separated, widowed, or divorced, are the most likely to face housing insecurity, with up to 60% of widowed renters spending more than 30% of their income on rent. Severe rent burdens are the highest in metros like San Antonio, Tampa, and Miami. 

Source: Zillow (May 2025)

Diana Olick of CNBC highlights a “striking” shift in the apartment rental market, with turnover rates dropping to just 30% (far below the typical 50%) as renters cling to leases due to high home prices, low rental supply, and economic uncertainty. This reduced turnover boosts landlord cash flow by lowering costs related to repairs and vacancies. Multifamily rents are recovering, up 0.9% year-over-year in Q1 2025, supported by the strongest net absorption since 2000, over triple the pre-pandemic average, leading to a vacancy rate of 4.8%, below the historical norm.

Sami Sparber of Axios reports that buying a home now requires over $50,000 more annual income than renting. This is driven by rising home prices, elevated mortgage rates near 6.5%, and limited housing inventory. To afford a mid-priced home, a household must earn $116,600 annually, compared to $64,200 for a mid-priced rental—an 82% income gap that has widened sharply in recent years. The affordability divide continues to grow with the median home price at $423,900 (up 4.5% YoY) and median rent at $1,600 (up just 0.2%).

Patrick Sisson of Bloomberg reports that the Trump administration is aggressively rolling back federal renter protections, proposing a 40% cut to HUD rental aid, eliminating the Affirmatively Furthering Fair Housing rule, and shifting the Section 8 voucher program to state-run block grants. These changes come alongside deregulatory actions that benefit landlords, including relaxed energy standards and rescinded tenant screening protections. Legal aid groups warn the rollback will increase evictions and reduce housing affordability.

Fed decision

Jessica Dickler of CNBC reports that the Federal Reserve has held interest rates steady, citing economic uncertainty and inflationary pressure from tariffs. Despite three rate cuts in 2024, consumer borrowing costs remain high, with elevated rates on credit cards, auto loans, and mortgages offering little relief. Fed Chair Jerome Powell is navigating what economists call a potential “black swan” policy shock, leaving rates unchanged as markets remain volatile and price pressures persist.

Source: CNBC (May 2025)

The Mortgage Bankers Association (MBA) Chief Economist Mike Fratantoni comments on the decision:

“MBA forecasts that the risks to growth and the job market will wind up being the bigger concern this year, which will lead the Fed to resume cutting short-term rates in the second half of the year. Until then, the hard data on inflation and unemployment will continue to drive interest rates, including mortgage rates, from one end of a trading range to the other, with only a slight downward trend in mortgage rates over the remainder of 2025.”

Sarah Fortinsky of The Hill reports that President Trump lashed out at Fed Chair Jerome Powell after the Fed held interest rates steady for the third consecutive meeting, defying Trump’s repeated calls for cuts. On Truth Social, Trump called Powell a “FOOL,” arguing inflation is under control and tariffs are benefiting the U.S. economy. Powell defended the Fed’s cautious stance, citing strong fundamentals and uncertainty around tariff impacts. Despite past tensions, Trump clarified that he did not plan to remove Powell from his position.

Callum Jones of The Guardian highlights how the Fed is signaling growing concern over President Trump’s tariff strategy, which it warns could lead to higher inflation, rising unemployment, and slower growth. While holding rates steady for the third straight meeting, Powell clarified that tariff-driven uncertainty is now a dominant economic risk, calling the situation a potential inflationary shock. Despite political pressure, the Fed emphasized its independence, with analysts seeing the central bank’s cautionary tone as a subtle rebuke of the administration’s trade policies.

Reuters reports that analysts broadly viewed the Fed’s decision to hold rates steady as expected, with most highlighting the central bank’s growing concern over stagflation risks—rising inflation and unemployment, driven partly by tariffs. Many, like Allspring’s Matthias Scheiber, expect no cuts before September, while others foresee potential rate reductions by July if growth weakens. Several experts, including Glenmede’s Jason Pride and Spartan Capital’s Peter Cardillo, noted the Fed’s hawkish tone and implicit message that tariffs worsen economic uncertainty. Overall, the Fed is seen as cautiously waiting for clearer signals, while markets brace for possible recession and policy shifts later in the year.

Listing portals

Marian McPherson of Inman reports that CoStar CEO Andy Florance announced Homes.com will now boost listings banned by Zillow, offering an alternative platform for brokers and homeowners impacted by Zillow’s private listing restrictions. The Boost tool, launched April 29, aims to increase visibility for these sidelined properties, positioning Homes.com as a more open and agent-friendly marketplace amid growing real estate listing space tension.

Samantha Delouya of CNN reports that private real estate listings, once a niche strategy, have become a flashpoint among America’s largest brokerages, with Compass at the center of the controversy. The company’s “Private Exclusive” approach lets sellers market homes internally before going public, a tactic critics like eXp Realty CEO Leo Pareja argue is exclusionary and undermines trust by limiting buyer access and potentially creating double-ended deals for Compass agents.

Jeff Andrews of HousingWire reports that Compass CEO Robert Reffkin used the company’s earnings call to defend its three-phase pre-marketing strategy, pushing back against criticism tied to the Clear Cooperation Policy (CCP). Amid ongoing industry tensions, Reffkin questioned the alleged risks to sellers, dismissing what he called “negative narratives and scare tactics,” and reaffirmed Compass’s commitment to giving sellers more control and flexibility in how listings are marketed.

Compass also reported record-breaking Q1 2025 results, with revenue up 28.7% year-over-year to $1.4 billion, and operating cash flow jumping 169% to $23.1 million. The company gained 125 basis points in market share, hitting a record 6%, and saw strong agent growth, now totaling over 20,600 principal agents, up 42% YoY. CEO Robert Reffkin credited Compass’s three-phase pre-marketing strategy and proprietary tech platform for outperforming a market that declined 2.1% in transactions.