Housing Trends in 2025: Insights for Relocation Professionals

Assessing the Current Housing Landscape

So far, the housing market in 2025 can be characterized by stabilization and shifting dynamics. While rental markets are experiencing a deceleration in price increases due to an influx of newly constructed multi-family units, the sales market is witnessing a gradual recovery with decelerating appreciation in sales prices. These trends have significant implications for corporate relocation, influencing decisions related to employee housing support.

Trends Impacting Renters

In 2025, the U.S. rental market is already experiencing notable shifts that are influencing renter behaviors and preferences.

Stabilizing Rental Prices

The influx of new multi-family housing developments has led to a leveling in rental rates. According to destination services provider, Dwellworks, the national vacancy rate has risen above 7%, resulting in increased availability of multi-family units in cities such as Seattle, Nashville, Miami, Las Vegas, Phoenix, and various Texas locations. In these oversupplied areas, landlords are offering incentives to attract tenants. 

The Impact of Economic and Policy Change

Conversely, single-family home rentals remain in high demand, with prices expected to stay elevated due to limited availability. Broader economic conditions, including inflation and interest rates, will play a significant role in determining how rental markets evolve in 2025. According to a study conducted by GO Destination Services, mortgage interest rates are rising again, making homeownership less accessible and keeping more people in the rental market. This continued demand for rental properties may prevent rents from declining substantially, even in cities with increasing supply.

Additionally, legislative changes—such as the FARE Act in New York, which affects broker fees—could alter rental market dynamics in key metro areas. In Canada, new immigration policies aimed at addressing housing shortages may impact rental supply, while Mexico continues to see rising demand in expat-friendly cities like Mexico City and Monterrey.

Evolving Renter Preferences

A recent Zillow survey indicates that 95% of renters prioritize staying within their budget, leading many to renew leases and negotiate moderate increases with current landlords rather than incur the costs associated with moving. Additionally, millennials and Gen Z renters are driving demand for flexible lease terms, modern amenities, and tech-enabled living spaces, such as smart home features. 

Rise of Co-Living Arrangements

Affordability concerns have led to a growing interest in co-living and shared housing, particularly among younger renters and professionals on long-term assignments. These arrangements offer private bedrooms within communal apartments or homes, promoting both cost savings and a sense of community.

Trends Affecting Homebuyers

In 2025, the U.S. housing market is exhibiting several key trends that are shaping the homebuying experience. John D’Ambrogio from @Properties Christie’s International Real Estate, provided valuable insight from his State of the Market - Q1 2025 report which highlighted these trends:

Gradual Market Recovery

The housing sales market is experiencing a steady recovery, with nationwide average sales prices (ASPs) increasing by 6.3%. Midwest markets, such as Chicago, have seen higher gains (11.1%), while traditionally hot markets like Florida have observed more modest growth (3%). Forecasts from Redfin and Zillow predict continued, albeit moderate, growth.

Stable Mortgage Rates

As of January 2025, mortgage rates have risen by 1% since Q4, reaching 6.96%. The Federal Reserve is not expected to lower rates in the near term. Despite higher rates, the market remains robust, supported by a strong economy and controlled inflation.

Persistent Housing Shortage

Despite increased supply, the market remains short by 2-5 million homes. Rising costs and potential tariffs are further impacting affordability.

Putting it all into Action

For HR departments overseeing corporate relocations, these trends necessitate strategic adjustments:

• Flexible Housing Options: Given the competitive rental market, offering a range of housing solutions, including options in suburban and commuter areas, can accommodate diverse employee needs while adhering to budget constraints.

• Emphasis on Negotiation and Market Knowledge: D’Ambrogio advises, "Let transferees know that commissions are negotiable and reflect the value that a professional, relo-trained agent brings to the table." Promoting agent expertise in market knowledge and negotiation skills can greatly enhance the relocation experience.

• Corporate Support in Home Buying: To assist relocating employees in competitive markets, D’Ambrogio urges corporations to help make their buyer's offers “stand out”. This may involve financial incentives or partnering with experienced real estate professionals to strengthen purchase offers.

Assessing the Bigger Picture

Understanding housing market trends is essential for Human Resources departments managing corporate relocations, as these trends directly influence housing options and strategies. A tight housing market with limited inventory can make it challenging to find suitable accommodations for relocating employees, potentially increasing timelines and costs. In contrast, a market with abundant housing options offers more flexibility in location and pricing, allowing for more efficient planning. By staying informed, HR professionals can proactively adjust their policies to meet employees' evolving needs, facilitating smoother transitions and maintaining their satisfaction throughout the entire relocation process.

At CRI, we have the pulse of the housing market, offering clients a range of flexible housing solutions, connections to top-tier real estate professionals, and comprehensive support for both renters and homebuyers. Partnering with us empowers you to navigate the complexities of the housing landscape and maintain your competitive edge. Connect with us today for more information!