Why Small Markets Are Heating Up While Big Cities Cool Down | Real Estate Market Update w/ Martin Perdomo

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Rentership rates across the United States have climbed to a nine-year high of 36% according to fresh Redfin data, marking a significant shift in the housing landscape as we move through 2025. This growing preference—or necessity—for renting over homeownership tells a compelling story about affordability challenges that continue to shape real estate markets nationwide.

Major metropolitan areas like Austin, San Francisco, and Miami are experiencing skyrocketing rents, yet the demand shows no signs of slowing down. This trend is creating substantial opportunities for real estate investors focused on multifamily properties, while simultaneously reshaping population distribution as people seek more affordable living options. The paradox of rising rents alongside unattainable homeownership is pushing more Americans toward long-term renting situations that were once considered temporary.

Despite these affordability hurdles, February 2025 home prices increased to a median of $403,000—up 2.7% year over year. What's particularly fascinating is where this growth is happening: smaller suburban markets are seeing appreciation while larger urban centers like Los Angeles and New York are experiencing noticeable price declines. This geographic divergence highlights a migration pattern driven by value-seeking buyers who want more space for their money. Meanwhile, mortgage rates continue their volatile journey, currently sitting around 6.9% for 30-year fixed loans after fluctuating with the 10-year Treasury yield. For prospective buyers, the timing question becomes increasingly critical as rates threaten to climb higher.

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Episode Transcript

Speaker 1 (00:00):
Welcome back to this week's real estate market update
.
Today, we'll break down thelatest updates on the housing
market and what's drivingmultifamily investments into
2025.
We'll also have a specialannouncement about an event that
could help you achievefinancial freedom in just a few
years, so stick around for thatuntil the end.

(00:21):
First up, redfin just releasednew data showing that the US
rentership hit 36% in Q4 of 2024.
That's a nine-year high,signaling a growing preference,
or necessity, for renting overhome ownership.

(00:43):
As affordability continues tobe a challenge, especially for
first-time homebuyers, morepeople are opting to rent,
pushing the rentership rate up.
In cities like Austin, sanFrancisco and Miami, rents have
skyrocketed, making owning ahome feel out of reach for many.

(01:03):
This shift towards renting overbuying is reshaping local
markets and creatingopportunities for investors who
are looking to cash in on rentaldemand.
For renters, this trendhighlights the increasing
competition and higher monthlycosts as demand soars.
Now, before we jump into thelatest home price data, we need

(01:27):
to talk about something that'squickly becoming a hot commodity
our upcoming event how to befinancially free in under three
years.
It's almost sold out.
We're down to our last fewtickets.
So if you're serious aboutbuilding a path to financial
freedom through real estateinvesting, you need to act fast.

(01:49):
The strategies we'll be sharingat this event could be
life-changing for you and yourfamily, whether you're a
seasoned investor or juststarting out.
Head over to WealthyAFai tosecure your spot now.
Again, tickets are running outand we don't want you to miss
out on this opportunity.
All right, right back to thenews.

(02:13):
February 2025 saw a slightuptick in home prices across the
US, despite the challengingaffordability conditions.
Us, despite the challengingaffordability conditions,
redfin's Home Price Index reportthat the median home sale price
reached $403,000, up 2.7% yearover year.

(02:39):
While price growth has slowedcompared to the pandemic boom
years, demand remains strong incertain areas.
This growth is particularlyvisible in smaller suburban
markets, where buyers areseeking more space for their
money.
Interestingly, price declineswere seen in some of the

(03:01):
nation's largest metro areas.
In some of the nation's largestmetro areas, cities like Los
Angeles and New York, indicatingthat affordability issues may
be pushing people out of thesemarkets and into more affordable
regions.
And finally, mortgage rates areback on the rise For the first

(03:21):
time in five weeks.
The average rate of a 30-yearmortgage fixed rate increased to
5.9%.
I mean decrease, excuse me.
According to Yahoo Finance.
Higher rates are making ittougher for buyers to afford
homes, especially in marketswhere prices remain elevated.

(03:43):
This rise in rates that'shappened over the last week,
combined with elevated homeprices, is putting a lot of
pressure on buyers who werealready struggling to keep up
with affordability.
If you're thinking about buying,now's the time, now is the time
to really assess your financialsituation.

(04:05):
Locking in lower rates earlierthis year could have been a
missed opportunity for many, butthere's still time to act
before rates climb even higher.
I want to talk a little bitabout this here.
The mortgage rates market rightnow is very volatile.
We are I'm refinancing three ofmy investment properties and

(04:30):
I'm seeing rates actually havedropped on the commercial side,
but on the residential side,we're looking at the 10-year
treasury.
That's going up and it's goingdown.
It's going up, it's going down.
Overall, though, net-net, I'mseeing the 10-year treasury down
.
I'm seeing the 10-year treasuryat around 4.2 and I'm seeing
interest rates for 30-yearmortgage right around seven

(04:53):
excuse me and 6.96.
This wraps up this week's realestate market update.
If you found this helpful, besure to share it with your
network and tune into next timefor more insights on the latest
market trends.
And don't forget if you want toget ahead of the market, grab
your ticket for our upcomingevent before they're all gone.

(05:13):
Thanks for listening.
I'll see you next time.
Peace out.