After tracking years of volatility in the multifamily sector, I can tell you this: early 2025 isn’t just another uptick—it’s a moment of reckoning. If you’re watching the headlines and wondering whether to rent or buy this year, you’re not alone. The numbers are moving—but the real question is, should you?

Multifamily Market Rebound: What’s Really Happening Right Now?

According to Realtor.com and data from Zillow (as of early 2025), the U.S. multifamily housing market is rebounding. Inventory of actively listed homes is up 30% from last year. Yet despite this rise, prices remain high, mortgage rates are hovering near 7%, and affordability is still out of reach for many buyers. Real estate professionals from markets like New York and Michigan confirm that bidding wars have re-emerged and long-term supply issues persist.

Key Takeaways from the Rebound (That Most Headlines Skip)

1. Rising Inventory Doesn’t Equal Affordability

Sure, listings are up—but that doesn’t mean prices are down.
While more homes on the market could suggest relief for buyers, elevated interest rates mean monthly payments are still significantly higher than in past cycles. In New York City, for example, a $1.3 million condo may carry a mortgage payment of $9,700/month—nearly $3,000 more than renting a similar unit.

Why it matters:
Many renters considering homeownership are finding that more listings don’t automatically translate to more opportunity—especially when rates and HOA fees eat into affordability.

2. Renting Still Wins on Flexibility and Cost

“If you’re only in town for a year or two, renting is the smarter play.”
With high prices and potential market fluctuations ahead, many families and young professionals are choosing to rent—sometimes even high-end single-family rentals—to avoid long-term commitments and upfront costs.

Why it matters:
In today’s market, renting isn’t a failure—it’s a financial strategy.

3. Buying Is a Hedge—If You’re In It for the Long Haul

“Buying today isn’t about timing the market—it’s about time in the market.”
For buyers with stable employment, long-term plans, and enough liquidity, purchasing a home now could lock in appreciation gains and offer protection against rising rents.

Why it matters:
The average home has appreciated over 45% in the last five years. If that trend continues, today’s high sticker price could still look like a bargain in hindsight.

4. Interest Rates May Not Fall Anytime Soon

Hoping for a 3% mortgage rate comeback? Don’t hold your breath.
Experts like Amanda Rogers and Bill Kowalczuk stress that we’re unlikely to see pre-pandemic rates again. While refinancing is always an option, waiting indefinitely could mean paying more for the same home later.

Why it matters:
Deciding whether to rent or buy shouldn’t be based on wishful thinking about rate drops—it should be based on your life plans and financial foundation.

What Should You Do Next? A Few Smart Moves

For Potential Buyers:

• Lock a rate, then refinance later. If you plan to stay in your home long-term, today’s rate won’t be forever—but rising home values might be.
• Look beyond aesthetics. Seek out well-maintained homes that may be less “Instagrammable” but offer better value.
• Use cash wisely. Don’t drain your investments unless your return on equity beats your portfolio.

For Renters:

• Explore single-family rentals. These often combine the space of a home with the flexibility of renting.
• Invest the difference. If you’re renting to save, actually invest those savings. Time and discipline are key.
• Test-drive your market. Rent in neighborhoods where you might eventually buy. Know before you commit.

Quick Explainer: 

What is an inventory crunch?

An inventory crunch happens when there aren’t enough homes available for sale or rent to meet demand. This scarcity drives up prices, leads to bidding wars, and limits options for buyers—especially in high-demand urban or suburban areas.

Subtle Tools That Help in This Market

Platforms like Zillow, Redfin, and RentCafe can help you compare monthly rent vs. mortgage payments, research neighborhood trends, and monitor inventory changes in real time. You don’t need a massive team—just smart data and a clear goal.

FAQ

Will housing prices go down later in 2025?

Unlikely. Even if demand softens slightly, low supply is keeping prices propped up in most markets.

Should I wait for a better time to buy?

Only if your situation allows. Waiting could cost more if prices and rents both rise.

Is it cheaper to rent or buy in 2025?

Depends on your market. But in many high-cost areas, renting still wins on short-term affordability.

Final Thought:

In 2025, the rent-vs-buy decision is less about the market—and more about your mindset. Are you seeking stability or flexibility? Are you investing for lifestyle or leverage? Either way, this rebound may be your signal—not to act fast, but to act smart.