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For rental property owners, 2025 brings tough choices. Many landlords ask: Is now the right time to sell a rental property?
Home prices have jumped. Since 2019, the U.S. median home price has soared by over $100,000, reaching $416,900 in 2025 — a 33% rise.¹ At the same time, rents have dropped. They’ve fallen year-over-year for 19 months in a row.² That means many landlords now have a lot of equity in their rental properties but face lower or flat income. That’s not to mention the twin problems of rising inflation and steep interest rates, and profits get even smaller.
For those thinking about selling, this might be the right year. AddressUSA lays out what to think about before making a move.
National market overview
Across the country, housing inventory remains low. The market is short about 4 million homes to sufficiently meet demand, so sellers should still see strong interest from buyers.
With demand high, J.P. Morgan Research expects home prices to rise another 3% in 2025. That would lock in the gains many landlords have seen over the past few years. Owners who’ve held their properties for a while could sell for a strong price and walk away with a significant profit.
Still, high interest rates may lead some landlords to hold off. Buyers and investors face a tighter mortgage market, which makes it harder to find qualified buyers at certain price points — even with steady demand.
Local market snapshots
Nationwide data shows that more than 80% of major metro areas saw home prices go up. But that also means that 20% did not. Places like Cedar Falls, Iowa; Duluth, Minnesota; and Florence, South Carolina saw year-over-year price drops in the first quarter of 2025.³
Some home values very by region, property owners should check their individual property values. Local trends play a big role in what a rental is worth.
“The best help we can provide property owners is accurate market information that is not just what’s going on by why’s it happening and where are the trends moving – that way they can make smart decisions,” explained Paul Huntsman, president of addressUSA.
Benefits of selling your rental in 2025
Timing matters. Should a landlord sell a rental property in 2025? There are several good reasons to consider it, given today’s market:
- Use equity gains: Home values have climbed over the past five or six years. Selling now could unlock that equity.
- Access cash: Sale profits can help pay off debt, boost retirement income, support other investments or help a family member buy a home.
- Simplify life: Many landlords find that owning a rental is more burdensome than they expected. If upkeep and tenant issues cause stress, a sale could offer a clean break.
- Improve cash flow: Reinvesting profits in a different way might bring more stable income, especially if rent variability has been difficult to manage.
- Defer taxes: A 1031 exchange lets owners roll sale profits into a new investment property and possibly delay capital gains taxes. A tax advisor can explain the details.
Get the best price for your rental property
No matter why an owner sells, getting the best price starts with good prep and expert help.
- Know the market: Use tools like the seller resources at addressUSA.com to learn what buyers want and how to reach them.
- Get the most from your listing: Small updates and staging an empty unit can make the property more appealing.
- Target the right buyers: Focus on people looking to grow their rental portfolio or invest in new opportunities.
- Hire top professionals: A great real estate agent knows the local market, helps navigate the process and gets top dollar.
“The best tip for landlords is to minimize vacancies by getting a good rental rate, not the highest possible – being full pays off better than great with lots of empty units,” said Roseann Nichlas of Address Realty.
The next step
Facing an upcoming vacancy? That might be the perfect time to sell — no need to move out a tenant. Selling a rental can help simplify your investments, cash in on your gains and strike while the market is still hot.
Take the first step — connect with an addressUSA agent and turn your rental into a successful sale.Footnotes
[1] Federal Reserve Bank of St. Louis, “Median Sales Price of Houses Sold for the United States (MSPUS),” FRED, fred.stlouisfed.org/series/MSPUS
[2] Realtor.com, “February 2025 Rental Report: Rents Continue To Fall Nationwide, but Upcoming Supply Pinch May End the Trend,” realtor.com/research/february-2025-rent
[3] National Association of Realtors, “Metropolitan Median Area Prices and Affordability,”nar.realtor/research-and-statistics/housing-statistics/metropolitan-median-area-prices-and-affordability
Members of the editorial and news staff of USA TODAY Network were not involved in the creation of this content.
