Investors often ask me, “Rod, did I miss my window? Should I wait for the next correction?”
The short answer: no.
If you focus on cash-flowing assets, the current market continues to favor buy and hold landlords. You don’t need to predict the market, you need to play the long game. Here are seven research backed trends showing why 2025 is a great time to become a landlord. Learn how to take advantage of this special moment in real estate.
1. Homeownership Is Sliding Again
In Q1 2025, the U.S. homeownership rate dropped to 65.1%, the lowest in five years. This isn’t a sign of fading demand, but instead a reflection of affordability challenges. With mortgage rates high and housing prices still elevated, more qualified households are being pushed into renting. And that’s great news for landlords.
Fewer homeowners = more long term tenants.
2. Rents Are Outpacing Inflation
The March 2025 CPI report shows that rent went up by 0.3% from the previous month. Owners’ equivalent rent rose by 0.4%. Both increases are higher than core inflation. For more than ten years, rent growth has been higher than general inflation. This means landlords keep seeing real returns increase.
Inflation protection is built into the rental model.
3. Rents Proved Resilient in the Last Recession
Let’s rewind to 2008… During one of the worst economic downturns in history, the median asking rent went up from $660 to $710. At the same time, the median home sale price dropped by 16%. Investors holding rental property with positive cash flow from rental income weathered the storm far better than those banking on appreciation.
Lesson learned: Buy for cash flow and you stay protected in any cycle.
4. The Service Economy Creates Lifetime Renters
Today, service-sector jobs make up 80% of U.S. employment. These jobs offer steady pay, but often not enough to afford a mortgage. That creates a growing population of renters, especially among working class families.
Many of these renters are not just short-term tenants. They’re lifelong customers seeking well-managed, affordable homes.
5. Family and Lifestyle Norms Are Delaying Homeownership
Family milestones are happening later. Half of Gen Z adults still live with their parents, and the average age of first-time motherhood is now 27.5. Add in delayed marriage and career mobility, and you have more young adults renting well into their 30s.
Landlords who own desirable, accessible properties in good real estate markets stand to benefit for years to come.
6. Millennials Still Prefer Leases Over Loans
Only 56% of 35-year-olds owned homes in 2024, compared to 61% of boomers at that same age. Reasons? Flexibility, student debt, unstable incomes, and difficulty qualifying for traditional mortgages.
High-quality rentals in good neighborhoods remain in high demand and will be for the foreseeable future.
7. Affordable Housing Demand Never Disappears
In Q1 2025, the median asking rent price hit $1,468. Yet Class B and C properties. Those providing affordable housing remain scarce. No matter what the market does, people always need a clean, safe, and affordable place to live.
That’s what makes workforce housing an evergreen investment strategy.
Is Now a Good Time to Become a Landlord?
When you look at housing costs, rising rents, and changing populations, one thing is clear: 2025 will favor landlords.
Here’s what to focus on:
- Invest in cash-flowing properties
- Use conservative leverage
- Prioritize professional property management
The timing will take care of itself.
Frequently Asked Questions About Becoming A Landlord
Is 2025 a good year to invest in rental properties?
Yes. With fewer people owning homes, rising rents, and high demand for rentals, 2025 offers a great chance for landlords. They can earn steady cash flow and build long-term equity.
What type of rental property is best in this market?
Class B and C multifamily properties offer the best balance of affordability and demand. Workforce housing is especially strong because of structural supply shortages.
How do I protect my investment during a downturn?
Focus on properties with strong property management, maintain conservative leverage, and invest for cash flow instead of speculating. These fundamentals protect you across cycles.
Should I wait for interest rates to drop?
You don’t necessarily need to wait for interest rates to drop. Waiting can mean missing prime opportunities. If a deal cash flows today, it’s worth serious consideration. You can always refinance later.
What are the tax advantages of being a landlord?
Landlords benefit from depreciation, mortgage interest deductions, and potentially long-term capital gains treatment. Consult a tax advisor to maximize your benefits.
Want to Learn How to Build Lifetime Cash Flow?
📘 Download my free book “How to Create Lifetime CashFlow Through Multifamily Properties.”
2025 favors action takers, so if you’re ready to stop waiting and start building lasting income through real estate, now is the time.
Disclaimer: This article was created with the assistance of AI and reviewed by Rod Khleif and his team to ensure accuracy and relevance.
