Lessors of Residential Buildings NAICS 531110

Nov 17, 2025 - Renters Hold Advantage in Apartment Market

• U.S. renters are benefiting from a tenant-friendly market, with slowing rent growth, generous concessions, and record leasing incentives, according to The Wall Street Journal. A surge in apartment construction, delayed by supply-chain issues, has led to a glut of new units, especially in Sunbelt and Mountain West. National average rent fell 0.3% in September, the steepest drop for that month in over 15 years, according to data firm CoStar. Young renters face job market challenges, with unemployment for ages 20 to 24 at 9.2%, prompting many to delay moving out or seek roommates. Landlords are offering months of free rent, gift cards and other perks to fill vacancies. Some analysts now expect rent growth to remain subdued through 2027, as more units come online and demand softens.
• Multifamily developer confidence improved in the third quarter of 2025 but remained in negative territory, according to the National Association of Home Builders’ (NAHB) latest Multifamily Market Survey. The Multifamily Production Index (MPI) rose six points in Q3 2025 to 46 compared to the third quarter of 2024. The Multifamily Occupancy Index (MOI) decreased by one point to 74 over the same period. An MPI or MOI reading of 50 or more indicates that multifamily production or occupancy, respectively, is growing. While the MPI index indicates weakness in the multifamily construction market, the softness is mostly concentrated in mid-to-high-rise and condominium development, while developers of low-rise and subsidized rental properties are more optimistic.

• Atlanta has become the center of a nationwide surge in rental-application fraud, driven by high rents, social media tips, and a glut of luxury apartments, according to The Wall Street Journal. Influencers promote fake application packages with fraudulent documents, helping renters bypass income and credit checks. Nationally, rental fraud rose 40% last year, according to a survey by the National Multifamily Housing Council. The problem stems from a mismatch between luxury supply and affordable housing, worsened by slowed population growth and shrinking low-cost inventory. Fraudulent tenants can damage units, inflate prices, and disrupt communities. Legal action is rare, as it is difficult to collect damages from a tenant who cannot pay rent. Landlords increasingly rely on fraud-detection software to combat sophisticated schemes powered by AI.
• Corporate lessors of single-family homes face mounting pressure from “accidental landlords” renting out their homes when they're unable to sell, according to The Wall Street Journal. The dynamic is depressing rent growth, with top U.S. markets projected to rise just 0.8% this year, the slowest pace since 2011, according to John Burns Research & Consulting. Oversupply in some Sunbelt markets, where institutional portfolios are heavily concentrated, is driving down rents for new leases. Companies like Invitation Homes are offsetting losses by raising rents for existing tenants, but widening rent gaps may increase turnover. With nearly two million unsold homes on the market, and 2.3% of listings shifting to rentals, inventory seeping from sales to rentals is reshaping the rental landscape. Despite strong occupancy and retention, corporate landlords are underperforming the broader market, signaling challenges ahead in a housing environment marked by stalled transaction activity.