Why agents should be prepared
A market under pressure: rising rental prices nationwide
The rental prices in the US have continued to rise. The national average rent is expected to increase by 4.8 percent in 2025, with some regions experienced an increase of 20 percent or more, according to data due to the coverage of construction. States such as Texas, for example, have undergone considerable population growth, in particular in large metropolitan areas such as Austin, Dallas-Fort Worth and Houston, which in turn increases the demand for homes and increases rental prices. Midland, Texas, is expected to see an increase of almost 18 percent, which increases the median rent from $ 1,679 in 2024 to $ 1,977 in 2025, according to data from the apartment list. Similarly, Odessa is expected to experience an increase of 13 percent, with median rents from $ 1,550 to $ 1,754.
These substantial rental peaks are exacerbated by substantiation in the years 2010 and an increase in demand after the pandemic. The imbalance between supply and demand has intensified the competition between tenants, which has led to rapid price escalations, in particular in these much-needed regions.
Los Angeles: A case study in Marktstam
On the other American coast, states such as California have also seen the rent in the rent increase. The rental market in metro’s such as Los Angeles is particularly intense, due to long -term housing shortages and more recently worsened by natural disasters. The Pacific Palisades and Eaton fires in January 2025 destroyed more than 15,000 structures, in which they move more than 150,000 inhabitants and further effort the already limited rental facility, according to the California Department of Housing and Community Development.
As a result, the rents in the areas of Prime West Los Angeles are expected, for example, that they will remain high at least in the next 12 to 24 months, because the supply surpasses the supply. The average monthly rent in Santa Monica-de Most wanted market market is now $ 3,361, almost 50 percent higher than the average of Los Angeles County of $ 2,160, according to data from Zillow.
Peak rental prices are driven by record -breaking interest in available units. With a stream of displaced Angelenos, competition for available units reached new extremes. According to Rentsspree -data rental activities in Santa Monica, Beverly Hills, Manhattan Beach and Malibu to six times their historical levels. In the meantime, Sierra Madre, South Pasadena, La Canada Flintridge and San Marino saw unexpected peaks in demand, in which Sierra Madre alone experienced an increase of 400 percent in applications per real estate.
What this means for real estate professionals
With the rental question that will only increase this year and afterwards, brokers and real estate managers must quickly adapt to remain competitive. Insight into the trends of the rental price, vacancy rates and localized shifts will be crucial to effectively operate both tenants and owners of real estate. Those who use technology, data insights and streamlined lease processes will best be positioned to thrive in this increasingly competitive space.
Because the affordability of home ownership continues to decrease, the expertise of the rental market is no longer optional – it is essential. By staying informed and staying proactive, real estate professionals can ensure that they not only respond to market changes, but are the way to help customers navigate one of the most competing housing markets in history.
Michael Lucarelli is the CEO Rentspree
This column does not necessarily reflect the opinion of the editorial department of Housingwire and the owners.To contact the editor who is responsible for this piece: [email protected].
