The best and worst rental markets

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Fewer Unicorns Founded When Interest Rates Are Higher for Longer link

• When interest rates are low, more startups reach unicorn status because cheap capital allows them to scale quickly. Higher rates make borrowing expensive, slowing growth and reducing the number of billion-dollar companies.

• The Federal Reserve raises interest rates to slow economic activity, directly impacting venture capital investments. Startups, which often have no earnings or revenue, struggle to cover debt costs in this environment.

• Venture capital becomes less attractive when rates stay high because startups can't easily fund expansion. Companies with low interest coverage ratios face the most difficulty surviving or scaling.

Top 10 states with the lowest mortgage payments link

• West Virginia has the lowest mortgage payments in the U.S. at $1,838 per month, reflecting its median home price of $249,000. Ohio and Michigan follow with payments of $1,864 and $1,983, tied to home prices of $252,500 and $268,700.

• The 10 most affordable states for mortgage payments are all in the South and Midwest, where home prices are significantly lower. Louisiana, Iowa, Indiana, Kansas, Mississippi, Missouri, Oklahoma, and Arkansas all have median mortgage payments between $2,000 and $2,148.

• At the national level, the median mortgage payment is $2,971, with Hawaii leading as the most expensive state at $5,904. Massachusetts and California follow at $5,406 and $5,277, with home prices far exceeding the national median of $402,500.

• click on the link to see the rest of the list.

January 2025 Monthly Housing Market Trends Report

• Active home listings grew by 24.6% compared to last year, marking the 15th straight month of annual inventory growth. Despite this increase, inventory remains 24.8% below pre-pandemic levels from 2017-2019.

• The median home price in January was $400,500, down 2.2% from last year, but the price per square foot still rose by 1.2%. The shift toward smaller homes is responsible for the lower median price, but underlying values are still increasing.

• Homes spent 73 days on the market, the slowest January since 2020, taking five more days to sell than last year. The biggest increases in time on market were seen in Nashville (+19 days), Orlando (+15 days), and Miami (+11 days).

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Multifamily Sees Record-Breaking Absorption in Q4 link

• The multifamily market absorbed 183,600 units in Q4, marking a 13% increase from the previous quarter and a 118% jump year-over-year. Annual net absorption hit 530,600 units, more than double the 2023 total and just 14% below the 2021 record.

• New York, Houston, and Dallas led the market with 18,600, 10,400, and 8,800 units absorbed, respectively. Every one of the 69 tracked markets saw positive net absorption, the first time this has ever happened in Q4.

• The national vacancy rate fell to 4.9%, with 30 markets now below pre-pandemic levels. Rent grew 0.5% year-over-year to $2,176 on average, with the Midwest leading at 2.8% growth while the Mountain region saw the biggest decline at -2.8%.

The best and worst rental markets link

• Rent growth slowed dramatically to just 0.8% in 2024 after rising 7.1% in 2022 and 4% in 2023. The last quarter of 2024 even saw a slight decline of 0.21% compared to the same period in 2023.

  

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• The Midwest led rent growth at 5.26%, followed by the Northeast at 4.84%, while the Southwest saw a slight decline of 0.09%. High vacancy rates, particularly in apartments, pressured single-family rental prices, pushing vacancy rates to 6%, the highest since early 2018.

• Austin, Phoenix, Tampa, St. Petersburg, and San Antonio saw declining single-family rents in 2024, partly due to the surge in build-to-rent developments. Cambridge, MA, was the most expensive midsize city at $5,687, while Jackson, MS, was the most affordable at $1,197.

Unprecedented growth in Savannah industrial market link

• Savannah’s industrial market doubled in size over four years, with 15.8 million square feet added in Q4 2024 alone. The Hyundai metaplant and supplier factories fueled rapid warehouse development and port expansion.

• Vacancy rates slightly increased, but absorption remained strong at 22.28 million square feet for 2024, keeping Savannah among the fastest-growing industrial markets. Ongoing projects include 24 buildings under construction, with 19 being speculative builds averaging 360,000 square feet each.

• The Georgia Ports Authority is investing $4.5 billion in expanding the Port of Savannah over 12 years. Savannah is now the third-busiest U.S. container gateway and a key entry point for trade with India.

Where Is The Luxury Retail Market Headed in 2025? 

Hospitality trends in 2025

These Cities Are Leading SFR Momentum

Top 10 cities to watch for rental activity in 2025

Revealed: The State With the Richest Homeowners

List of Proptech Startups That Just Got Funded

Charted: Approval Ratings of 24 World Leaders in 2025

Not a church this time.

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Vidit

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