CoreLogic released its monthly Single-Family Rent Index report highlighting that growth slowed to 1.5% year-over-year in November 2024, the lowest in over 14 years. Detroit led with a 6.1% increase, while Washington, D.C. followed at 5.5%. Lower-tier rents saw the biggest declines, while higher-priced rentals grew slightly. Wage growth has outpaced rent growth, keeping demand steady, particularly in affordable Midwestern markets like Detroit, Philadelphia, and Houston. 

Source: CoreLogic (February 2025)

CoreLogic senior principal economist Molly Boesel comments:

“Single-family annual rent growth slowed in November to the lowest rate in about 14 years. Wage growth outpaced single-family rent growth for much of the past two years which kept rent growth in positive territory…Despite the recent slowdown in rent growth demand for rentals should remain strong as wage and job growth are anticipated to remain strong this year.”

Zillow released a report on single-family rentals, now 20% higher than apartment rents, the largest gap ever recorded. Single-family rents have surged 41% since pre-pandemic levels, compared to a 26% rise for multifamily units. Despite stable apartment rent growth, concessions are at a record high, with 41% of rentals offering incentives. High mortgage rates are pushing millennials to rent larger homes rather than buy, while home inventory is recovering but remains 25% below pre-pandemic norms.

Glen Luke Flanagan of Fortune comments on the Zillow data, highlighting that the median renter age has jumped from 33 in 2021 to 42 in 2024, reflecting the difficulty of saving for a down payment, which now takes an estimated nine years. While single-family rental demand remains high, supply hasn’t kept pace, driving up rents nationwide. Builders are adapting to smaller, denser developments, and policymakers are focusing more on affordability, but the rental market remains tight, with record-high concessions offered to attract tenants.

Matt Wasielewski of Bisnow reports that SFRs accounted for nearly 1 in 10 new homes built in 2024. Institutional investors, favoring purpose-built rental communities over acquisitions, fueled a $6.3B investment surge in 2024, nearly doubling the previous year’s total. SFRs accounted for 27% of all rental housing starts, a sector that has grown for six consecutive years.

Source: Bisnow (February 2025)

Robert Dietz of the National Association of Home Builders (NAHB) reports that single-family built-for-rent (SFBFR) construction declined in Q4 2024 due to rising financing costs, mirroring a slowdown in multifamily construction. According to NAHB’s analysis of Census Bureau data, approximately 15,000 SFBFR homes were started in the quarter, a 38% drop from Q4 2023. However, total SFBFR starts for 2024 reached 83,000, reflecting an 8% annual increase.

Source: NAHB (February 2025)

MLS

New Zillow research shows that home sellers who bypassed the Multiple Listing Service (MLS) lost a collective $1 billion over the past two years, with median losses of $4,975 per sale. The financial impact was highest in California, New York, and Massachusetts, where sellers typically lost over 3% of their home’s value. Private listing networks limit buyer competition, leading to lower sale prices, especially for lower-priced homes. A survey found that 63% of recent sellers were advised to use private networks despite 81% of Americans preferring public listings.

NAR released a statement last week saying it has agreed with Phoenix REALTORS to bring the local association back into compliance with NAR’s Constitution and Bylaws, allowing it to retain its charter. Phoenix REALTORS eliminated its “MLS Choice” membership option but will continue offering non-member MLS access. NAR emphasizes that this resolution maintains REALTOR brand standards while ensuring MLS access policies remain unchanged.

Brooklee Han of HousingWire reports that the National Association of Realtors (NAR) has filed a motion to dismiss the DeYoung lawsuit, arguing that the plaintiffs failed to state a claim. The suit, filed in Louisiana, alleges that NAR and regional Realtor associations unlawfully tie MLS access to membership. Plaintiffs also claim NAR’s commission lawsuit settlement caused “emotional distress.” NAR contends the claims lack factual support and dismisses them as an improper legal attack on established policies and settlements.

Brooklee Han of HousingWire reports that eXp Realty is leveraging its knowledge of the U.S. MLS system to drive international growth. CEO Glenn Sanford highlights its role in professionalizing global real estate markets. The firm expanded to 24 countries in 2024, with plans to reach 60+ within five years. Despite advocating for NAR’s Clear Cooperation Policy, eXp executives say they are well-positioned to thrive even if private listing networks gain traction. The company reported a 63% increase in international revenue but saw a 5% drop in agent count, shifting its focus toward retaining high-performing agents.

Finally, AJ LaTrace of Real Estate News reports that Compass is launching Compass One, a client portal designed to streamline transactions while emphasizing private listings. The platform integrates Compass’ marketing strategy, encouraging sellers to list privately before going to the open market. With 5,500 Private Exclusive listings, Compass is betting on a future without NAR’s Clear Cooperation Policy, which CEO Robert Reffkin expects to be repealed.

Price growth

Mark Worley and Chen Zhao of Redfin report that the total value of U.S. homes rose by $2.5 trillion in 2024, reaching $49.7 trillion, a 5.2% year-over-year increase—the slowest since 2019. Upstate New York metros like Albany and Rochester grew fastest, while Florida cities lagged. Millennials own over $10 trillion in home value, growing nearly four times faster than baby boomers. Despite seasonal fluctuations, steady price increases and limited inventory are expected to keep home values rising in 2025.

Source: Redfin (February 2025)

“There are more homes for sale right now than in recent years and that has led to buyer’s markets in many areas of the country. That’s good news, but it doesn’t mean homes are getting cheaper—prices continue to tick up each month…We expect prices—and therefore home values—to keep rising steadily this year because there are still enough buyers competing over a relatively small number of listings, compared to before the pandemic.”

Dana Anderson, also of Redfin, reports that while the median home-sale prices rose 3.7% year-over-year—the slowest growth since September—buyers are gaining leverage as mortgage rates dip to 6.87% and inventory rises. Total supply has climbed to five months’ worth, the highest since early 2019, while new listings are up 4.2%. Homes are selling at a 2% discount on average, taking 57 days to go under contract—the longest in five years. While some West Coast and Northeast markets remain seller-friendly, buyers in places like Florida have more room to negotiate, though competition is expected to pick up in the spring.

Zillow Research reports that U.S. home values are expected to rise just 0.9% in 2025, down from a previous 2.9% forecast, as higher-than-expected inventory tempers price growth. Due to persistently high mortgage rates, existing home sales are projected to reach 4.11 million, remaining below pre-pandemic levels. 

Finally, Ana Teresa Solá of CNBC reports that mortgage rates dipped to 6.87%, easing affordability pressures slightly, but high costs and economic uncertainty are keeping some buyers on the sidelines. Inventory is increasing, with new listings up 4.7% annually, giving buyers more negotiating power. Sellers are cutting prices, with homes selling for 2% below asking—the biggest discount in two years—offering opportunities for those willing to negotiate or explore builder incentives.