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

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.

Want to navigate these complex market conditions and build wealth through real estate? Our upcoming event "How to Be Financially Free in Under Three Years" is nearly sold out. This gathering will equip you with actionable strategies whether you're a seasoned investor or just starting out. Don't miss this opportunity—secure your ticket at WealthyAFai before they're gone!

Chapters

• 0:00 Weekly Market Update Introduction
• 0:21 Rentership Hits Nine-Year High
• 1:23 Financial Freedom Event Promotion
• 2:13 February Home Price Analysis
• 3:16 Mortgage Rate Volatility
• 4:57 Episode Wrap-up

Transcript

Speaker 1: 0:00

Welcome back to this week's real estate market update. Today, we'll break down the latest updates on the housing market and what's driving multifamily investments into 2025. We'll also have a special announcement about an event that could help you achieve financial freedom in just a few years, so stick around for that until the end. First up, redfin just released new 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 over home ownership. As affordability continues to be a challenge, especially for first-time homebuyers, more people are opting to rent, pushing the rentership rate up. In cities like Austin, san Francisco and Miami, rents have skyrocketed, making owning a home feel out of reach for many. This shift towards renting over buying is reshaping local markets and creating opportunities for investors who are looking to cash in on rental demand. For renters, this trend highlights the increasing competition and higher monthly costs as demand soars. Now, before we jump into the latest home price data, we need to talk about something that's quickly becoming a hot commodity our upcoming event how to be financially free in under three years. It's almost sold out. We're down to our last few tickets. So if you're serious about building a path to financial freedom through real estate investing, you need to act fast. The strategies we'll be sharing at this event could be life-changing for you and your family, whether you're a seasoned investor or just starting out. Head over to WealthyAFai to secure your spot now. Again, tickets are running out and we don't want you to miss out on this opportunity. All right, right back to the news.

Speaker 1: 2:13

February 2025 saw a slight uptick in home prices across the US, despite the challenging affordability conditions. Us, despite the challenging affordability conditions, redfin's Home Price Index report that the median home sale price reached $403,000, up 2.7% year over year. While price growth has slowed compared to the pandemic boom years, demand remains strong in certain areas. This growth is particularly visible in smaller suburban markets, where buyers are seeking more space for their money. Interestingly, price declines were seen in some of the nation's largest metro areas. In some of the nation's largest metro areas, cities like Los Angeles and New York, indicating that affordability issues may be pushing people out of these markets and into more affordable regions.

Speaker 1: 3:16

And finally, mortgage rates are back on the rise For the first time in five weeks. The average rate of a 30-year mortgage fixed rate increased to 5.9%. I mean decrease, excuse me. According to Yahoo Finance. Higher rates are making it tougher for buyers to afford homes, especially in markets where prices remain elevated. This rise in rates that's happened over the last week, combined with elevated home prices, is putting a lot of pressure on buyers who were already struggling to keep up with affordability.

Speaker 1: 3:58

If you're thinking about buying, now's the time, now is the time to really assess your financial situation. Locking in lower rates earlier this year could have been a missed opportunity for many, but there's still time to act before rates climb even higher. I want to talk a little bit about this here. The mortgage rates market right now is very volatile. We are I'm refinancing three of my investment properties and I'm seeing rates actually have dropped on the commercial side, but on the residential side, we're looking at the 10-year treasury. That's going up and it's going down. It's going up, it's going down. Overall, though, net-net, I'm seeing the 10-year treasury down. I'm seeing the 10-year treasury at around 4.2 and I'm seeing interest rates for 30-year mortgage right around seven excuse me and 6.96.

Speaker 1: 4:55

This wraps up this week's real estate market update. If you found this helpful, be sure to share it with your network and tune into next time for more insights on the latest market trends. And don't forget if you want to get ahead of the market, grab your ticket for our upcoming event before they're all gone. Thanks for listening. I'll see you next time. Peace out.