Market Research for the New Year: Predicting Where Renters Will Go
- bberrodin
- 4 days ago
- 4 min read
As we turn the page on 2025 and look ahead to 2026, rental market dynamics continue to evolve in ways that matter deeply for property managers, investors, and real estate professionals. By analyzing demand trends, neighborhood competitiveness, and renter profiles from 2025, stakeholders can position themselves to capitalize on shifting preferences and emerging hotspots in the coming year.
Renter Demand in 2026
1. 2025’s Rental Market: A Data-Driven Foundation
Across the United States in 2025, rental demand remained robust, often outpacing new supply. In many metros, the number of occupied apartments grew significantly, indicating strong renter household formation and ongoing urban demand.
Yet the picture isn’t uniform: national trends show rents cooling modestly or even declining in some large markets, while specific regions, particularly secondary metros and highly competitive suburban areas, surged.
Key takeaways from 2025 data:
High occupancy and absorption:Â Many markets absorbed apartments faster than new units delivered, keeping vacancies low.
Regional shifts:Â Suburban and secondary markets, like parts of the Midwest and pockets of the Sun Belt, recorded some of the strongest increases in rental competitiveness.
Rent affordability dynamics: While headline rent growth moderated or slightly declined in many large metros, affordability remains strained relative to long-term norms.
This mixed environment lays the groundwork for targeted 2026 forecasting. Not broad generalizations, but neighborhood-level insights grounded in 2025 patterns.
2. Neighborhood Analysis: Where Will Renters Flock in 2026?
Secondary and Suburban Markets Are Hot
Markets like Lehigh Valley, PA, and fast-growing small metros such as Fayetteville, AR, saw sharp increases in rental competitiveness in 2025 due to strong demand and limited new supply. These areas highlight a broader shift: renters are increasingly drawn to affordable, lifestyle-oriented neighborhoods outside core urban centers.
Why this matters for 2026:
Remote and hybrid work make suburban living with access to quality amenities attractive.Â
Commuter-friendly regions with lower rent burdens continue to attract professionals leaving high-cost cities.Â
Tech and Job Growth Still Drive Urban Demand
Despite softer overall rent growth in some sectors, metros tied to expanding job markets, especially in technology, healthcare, and education, saw strong renter interest. Washington, D.C. led in renter engagement in early 2025 thanks to its quality transit, job opportunities, and walkable neighborhoods.
Expect continued demand in similar urban cores if local economies stay resilient, particularly in:
Walkable districts with transit access.
Areas near growing employment centers.
Neighborhoods with mixed-use development and lifestyle amenities.
Seasonality and Market Cycle Considerations
Renters traditionally move in spring and summer, and early 2026 is expected to follow that pattern, with competition intensifying through peak leasing months.
3. Resident Demographics: Who’s Driving Demand?
Understanding who is renting empowers better positioning and product strategy.
Younger Renters and Career Movers
Gen Z and young professionals remain a large share of the renter pool, drawn to neighborhoods with:
Transit and walkability.
Proximity to employment hubs.
Tech and social amenities.
These renters often prioritize flexibility and lifestyle over long-term homeownership, a trend that continued in 2025.
Multi-Generational and Suburban Renters
Meanwhile, broader shifts in household structures, including multi-generational living and families choosing rentals in suburban markets, are reshaping demand. Properties offering space, community amenities, and family-friendly features will appeal to this demographic.
Single-Family Rental Growth
Single-family rentals expanded in 2025Â as well, reflecting renter preference for space and privacy, particularly among older or family households.
4. Competitive Benchmarking: What’s Hot vs. What’s Cooling
Hot markets to watch in 2026:
Midwestern metros with strong affordability and stabilizing rent growth.
Competitive suburban markets where supply growth lags demand.
Secondary small metros are showing rapid Rental Competitiveness Index (RCI) gains.
Markets showing cooling or emerging softness:
Some large coastal cities experienced rent declines or flat growth in 2025.
Urban areas with heavy new supply may see slower rent momentum if vacancies rise, particularly in Sun Belt metros with ongoing construction.
This divergence underscores the importance of granular benchmarking, not just by city but by neighborhood, demographic segment, and property type.
Actionable Takeaways for Property Managers
Leverage granular data — tracking neighborhood-level RCI and search engagement will pinpoint where demand is rising fastest.
Align product features with renter expectations, such as workspace amenities, community spaces, and sustainability features.
Monitor supply pipelines — where new deliveries slow, opportunity for rent growth increases; where supply is heavy, differentiate with service and amenities.
Tailor marketing to demographic segments (young professionals vs. families vs. empty-nesters).
Positioning Your Properties for 2026 DemandÂ
2025’s rental data reveals a nuanced landscape: while some markets saw rent cooling, others grew more competitive than ever. By blending neighborhood analysis, demographic insights, and competitive benchmarking, property owners and managers can forecast where renters will go in 2026, and how best to serve them.
Understanding where renters are headed is only half the equation. BGSF partners with property managers and real estate leaders to translate market research into actionable strategies, from workforce planning to operational support. As demand patterns shift in 2026, our teams help ensure your properties are staffed, prepared, and positioned to compete. Let's chat!