As we head into the second half of the year, property managers are navigating a rental market marked by surprising stability. Despite national conversations about shifting supply and affordability concerns, recent data suggests that the rental landscape remains relatively steady, which is welcomed news for anyone responsible for managing rental properties.
In a recent survey of property managers, 74% indicated they expect rents to remain the same over the next six months, while 23% anticipate increases and only 3% foresee a decrease. These figures reflect a market that, while dynamic, is not expected to experience major price fluctuations in the short term.
This level of stability is particularly notable given the broader context. In many regions, new supply, especially in multifamily housing, has come online in recent months. However, rather than driving rents down, the market appears to be absorbing the additional inventory without disrupting pricing significantly.
Rental demand also seems to be holding strong. When asked about application activity, 72% of property managers reported no significant change in the number of rental applicants, while 20% saw an uptick and only 8% experienced a decline.
This consistent applicant flow suggests that, despite economic uncertainties and shifts in renter behavior (such as interest in co-living or relocating to more affordable areas), demand for rental housing continues to be solid. In short, people still need places to live, and rentals remain a core part of the housing solution.
While rent prices and application volume appear steady, vacancy rates offer additional insight into the health of the market. According to the U.S. Census Bureau’s most recent data, the national rental vacancy rate stood at 7.1% in Q1 2025, up from 6.6% in Q1 2024. This slight rise could be attributed to increased inventory, particularly in urban centers and rapidly developing suburbs.
For property managers, this underscores the importance of competitive marketing, tenant retention, and property upkeep. Even a slight uptick in vacancy rates can mean more effort and longer turnover times, especially in highly competitive areas.
One metric property managers should keep a close eye on is concession rates: discounts or move-in incentives offered to attract tenants. Concession rates are a helpful indicator of how much leverage property owners have in their markets, and they’ve been trending upward:
This steady rise, peaking at 28% in both Q4 2024 and Q1 2025, suggests that while rents may be holding steady on paper, many landlords are offering deals to get units leased. It’s a subtle sign that supply may be slightly outpacing demand in certain areas, particularly in newly built communities or higher-end units.
For property managers, this means one thing: competition is heating up. Whether it’s one month free, discounted security deposits, or waived application fees, concessions are becoming a standard part of the leasing toolkit.
Check out the Q1 2025 Nationwide Market Report.
Instead, it's a picture of calm in an often volatile industry. The environment is ripe for smart, strategic property management with steady rent expectations, reliable demand, and rising concessions. Now is the time to double down on operational efficiency, tenant relationships, and marketing creativity.
Because in real estate, as in life, consistency and a little flexibility can be your biggest strengths.
