7 Must-Know Trends in Single-Family Rentals for 2025

Continued Demand for Single-Family Rentals

As mentioned, single-family rentals are still in trend despite the constantly changing housing market. With a larger part of the single-family rental demographic comprising couples with children and multi-generational families, 2025 is promising for property managers and landlords with single-family rentals. In addition, larger households are continuously getting priced out of the housing market, increasing the demand for single-family rentals.

New Single-Family Home Construction

Recent research shows that builders across the country applied for more single-family permits in previous years. With most housing projects being completed by the middle and end of 2025, the housing crunch is expected to ease a little. New single-family homes could increase the competition without affecting home prices for buyers. This is a result of constant interest rates and the scarcity of buyers, leaving most people looking for rental homes until prices drop lower.

Tech-Driven Property Management

Property managers and landlords are adopting technology in operating single-family rentals, and this trend will only intensify in 2025. According to the latest reports, nearly 25% of rental owners want a property management company that leverages online tools to digitize rental processes. In addition, a vast majority of renters wish to complete most of the rental processes online. It is advisable to integrate property management software, automate operations, and smart home devices to enhance efficiency.

Find Quality Tenants

Although mortgage rates won’t come down drastically, the lower rates will help renters transition to homeownership. Coupled with more single-family homes, the number of prospective renters for single-family rental may dwindle. The biggest issue is finding good tenants; hence the need to prioritize tenant screening. You can streamline and fine-tune the tenant screening process by working with a trusted property management company. In addition, offering amenities like fitness centers, pools, and community gardens can attract quality tenants for single-family rentals.

Regulatory Changes

The end of a calendar year is a good time for property managers and landlords to familiarize themselves with new laws and regulations taking effect the following year. Most areas experience regulation changes annually, and 2025 is no exception. Depending on where you are, consulting by-law authorities can ensure compliance and prevent costly penalties and legal action. As a property owner with many rentals, familiarizing oneself with the changing regulations can be challenging. However, hiring seasoned property managers can ensure compliance and a seamless ownership experience.

Increased Popularity of Single-Family Rental REITs

In the previous years, property ownership shifted from multifamily to single-family rental real estate trusts (REITs). This resulted in most people delaying homeownership and opting to rent, making single-family REITs the go-to. REITs are organizations that own and run rental properties for the sole purpose of investment. These companies gather funding from small investors to purchase and operate properties, allowing individual investors to enter the real estate space without major financial commitments.

The Mandatory Affordable Housing Program

In 2025, the Department of Housing and Urban Development will include provisions to increase the availability of affordable homes, provide rent relief, and prevent evictions. One such program that was enacted by the Biden administration is the Project-Based Rent Assistance for low-income homes. This means property managers and landlords will be able to keep tenants with lower incomes through these programs.

If you stay on top of these trends, you will be positioned to thrive in an ever-changing market of single-family rentals. Contact us at 3 Options Realty and schedule a consultation to integrate technology and other proven strategies into your single-family rental business.