As we move further into 2025, the rental market continues to experience a significant shift, with a notable increase in available properties and a steady decline in rental prices, particularly for smaller units.
With a flood of new builds hitting the market, we are facing higher levels of competition than in previous years. The surge in new construction is meeting the needs of renters, but it’s also driving prices down as landlords and property managers vie for tenants in a crowded field.
It’s not just about finding a home anymore; it’s about finding a home that offers the best value. For those looking for smaller units—particularly 1-2 bedroom apartments—affordability is important. Renters are more price-conscious than ever before, and many are opting for smaller, more affordable living spaces rather than larger homes. Landlords are finding themselves under pressure to lower rents to secure tenants in a market that is saturated with options.
The influx of new builds, has been a direct response to this demand for more affordable housing. Builders are focusing on smaller units that cater to budget-conscious renters, and landlords of these units are finding themselves having to reduce rents to compete in the market. While this is good news for tenants, it can be a challenge for us as property managers.
It remains to be seen whether these trends will hold throughout 2025. As the year progresses, renters will continue to have the upper hand, with a wider selection of properties to choose from and more favourable rental terms.
Landlords and property managers are under increasing pressure to offer competitive prices in order to attract tenants, and renters are benefiting from this shift with lower rental costs.
Your property manager will keep you informed about the market, provide feedback, and offer recommendations on the rental price they believe your property can achieve to attract potential tenants. They may also suggest strategies to help rent your property, such as offering one or two weeks of free rent, a grocery gift card, or considering pet-friendly options.
