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7 Reasons Why 2025 Is a Great Time to Become a Landlord

Picture of Author: Rod Khleif

Author: Rod Khleif

Top Real Estate Mentor, Best Selling Author, Host of #1 Real Estate Investing Podcast

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 cycle continues to favor buy‑and‑hold landlords. Below are seven research backed trends proving why now is a great time to become a landlord in 2025.

1. Homeownership Is Sliding Again

The U.S. homeownership rate fell to 65.1 % in Q1 2025, its lowest level in five years   . Lower ownership doesn’t signal weak housing demand; it signals constrained supply and affordability challenges. More qualified households must rent which is an immediate benefit to landlords.

2. Rents Are Outpacing Inflation

The March 2025 CPI report shows that the rent index rose 0.3% from last month. Owners’ equivalent rent increased by 0.4%. Both are higher than core inflation. Over the past decade, rent growth has consistently exceeded general inflation, compounding landlords’ real returns.

3. Rents Proved Resilient in the Last Recession

During the 2008‑09 downturn, median asking rent actually rose from $660 to $710, while the median home sale price dropped roughly 16 %  . Cash‑flow investors who held rentals weathered the storm far better than flippers or appreciation gamblers.

4. The Service Economy Creates Lifetime Renters

Service‑sector jobs now comprise roughly 80 % of total U.S. employment and dominate new job creation . Many of these jobs offer steady income. However, it is not enough to meet today’s mortgage challenges. This increases the number of long-term renters looking for quality, affordable housing.

5. Family & Lifestyle Norms Keep Shifting

Marriage and first‑child milestones continue to drift later. Half of Gen Z adults still live with parents, and the median age of first‑time motherhood is up to 27.5 . Delayed family formation means delayed home buying, extending rental demand well into borrowers’ 30s.

6.Millennials Still Choose Leases Over Loans

Only 56 % of 35‑year‑olds owned a home in 2024, versus 61 % of baby boomers at the same age   . Reasons range from mobility preferences to student‑debt weight and gig‑economy income verification hurdles. Millions in this cohort prefer (or need) to rent high‑quality units in desirable neighborhoods.

7. Affordable Housing Demand Never Disappears

The Census Bureau reports the median asking rent for vacant units hit $1,468 in Q1 2025  . Yet affordable Class B/C units remain in short supply nationwide. No matter where the market cycle heads, people require a safe, reasonably priced place to live. This makes workforce housing an evergreen asset class.

Rod’s Final Takeaway

Homeownership softness, rent momentum, demographic shifts, and structural shortages all converge to create a landlord‑friendly landscape in 2025. Focus on positive cash flow, conservative leverage, and solid property management, and the timing will take care of itself.

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About the Author: 

Rod Khleif

Founder of The Lifetime Cashflow Academy, The Multifamily Bootcamp, and Warrior Program

Rod is a seasoned real estate investor, mentor, and philanthropist. He has owned and managed thousands of single and multifamily properties and is the host of the top-ranked “Lifetime Cash Flow Through Real Estate Investing” podcast. Rod is a best-selling author and one of the most trusted voices in the multifamily investing space. He’s been featured in major publications and has helped thousands of students achieve financial freedom through real estate.

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About Rod Khleif

Rod Khleif is a best-selling author, speaker and philanthropist, and the host of the top-ranked Lifetime Cash Flow Through Real Estate Investing podcast. He is widely regarded as one of the nation’s leading experts in multifamily real estate and has helped thousands build financial freedom through real estate investing.

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