The U.S. housing market has undergone massive changes over the past few years—but one question keeps coming up:
Are we still in a renter’s market in 2025?
With interest rates still high, housing affordability at a breaking point, and rental inventory rising in key metros, the answer isn’t black and white. But there are clear signs the balance of power is shifting—especially in places like Phoenix, Arizona.
Let’s break it down.
What Is a Renter’s Market?
A renter’s market occurs when rental supply exceeds demand. This gives tenants the upper hand—more choices, better pricing, and stronger negotiating power. On the flip side, in a landlord’s market, rental demand is high and inventory is tight, giving property owners the leverage to raise rents and set stricter terms.
In 2025, we’re seeing both types of markets—depending on where you look.
National Rental Trends in 2025
Across the U.S., several key trends point toward a national shift to a more renter-friendly environment:
Rent Growth Is Slowing
Nationwide, rent increases have cooled. As of Q1 2025, average rent growth sits around 3.5% year-over-year, down sharply from the double-digit spikes we saw during 2021–2022.
Supply Is Catching Up
Developers have delivered a record number of multifamily units in the last two years. That oversupply is now hitting the market—especially in Sun Belt cities like Phoenix, Austin, and Atlanta.
Affordability Is Still a Problem
Even though rent hikes have slowed, affordability is still out of reach for many Americans. Rising wages haven’t kept pace with elevated housing costs, pushing more people to remain renters by necessity—not choice.
Arizona Spotlight: Phoenix vs. Scottsdale
Let’s zero in on Arizona—where I’ve invested heavily for years. The Phoenix rental market and the Scottsdale housing market tell two very different stories.
Phoenix Rental Trends in 2025:
If you’re a renter in Phoenix, 2025 might be your year.
Occupancy is Down: Phoenix saw a 3.9% drop in occupancy rates year-over-year in Q1. That means more units sitting empty.
Inventory Is Up: Over 7,000 new rental units were delivered in 2024 alone.
Rent Growth Has Stalled: Average rents have remained flat compared to early 2024.
What this means: Phoenix is now a renter’s market. Landlords are offering concessions, move-in deals, and even free rent to fill vacancies. As an investor, you’ll need to compete more strategically—this is not the time to sit on overpriced listings.
Scottsdale Housing Market: Still a Landlord’s Game:
Just a few miles away, Scottsdale tells a different story.
Average Rent: $3,100/month
That’s 68% higher than the national average.
High-Income Renters Dominate
Remote workers, retirees, and transplants continue to flood the market.
Inventory Is Limited
Unlike Phoenix, Scottsdale hasn’t seen a construction boom—meaning demand still outpaces supply.
Translation: If you’re investing in Scottsdale real estate, this remains a landlord’s market. Tenants are competing for premium properties, and you don’t need to offer major discounts to fill units.
So… Are We Still in a Renter’s Market?
Yes—and no.
Nationally, we’re seeing clear signs of a renter’s market trend: more inventory, slower rent growth, and increased competition among landlords.
But locally, it depends:
Phoenix = Renter’s Market
Investors should focus on pricing, tenant incentives, and long-term retention strategies.
Scottsdale = Landlord’s Market
Focus on luxury amenities, premium finishes, and long-term appreciation plays.
Final Thoughts for Real Estate Investors
Are you in a renter’s market in 2025? You need to get hyper-local to find out. National trends matter, but your cash flow and ROI are determined by city blocks—not headlines.
I’ve said it before, and I’ll say it again:
“There’s no such thing as a national housing market. There are thousands of small markets, and each one behaves differently.”
In this shifting landscape, success depends on how well you understand your submarket—and how quickly you can adapt.
Want to Learn More?
I did a YouTube video about “Renter Nation” and why it will continue for the foreseeable future: WATCH IT HERE
