Considering where to invest in 2025? With rental demand projected to climb by over 6% this year, driven by persistent high mortgage rates and a growing population of renters, long-term rental markets are shaping up to be prime real estate investments.
Whether you're a seasoned investor looking to expand your portfolio or a first-time landlord seeking reliable income, knowing where to invest is the only way to maximize your returns.
In 2025, market dynamics are shifting significantly, with a record number of new multifamily units expected to enter the market. Forecasts predict the delivery of approximately 500,000 new apartment units across the U.S., representing the highest level of new supply in over 50 years. Meanwhile, the rise of hybrid work, coupled with increasing affordability challenges in homeownership, means more people are choosing to rent longer—but not all markets will perform equally.
To bring you this list of the best long-term rental markets for 2025, we analyzed key factors including job growth, rental demand, population trends, and affordability. By the end of this article, you'll know exactly which cities to target, why they stand out, and you’ll be able to make informed decisions to secure profitable investments.
Over the past couple of years, the U.S. long-term rental market has seen significant volatility due to a combination of surging demand, limited housing supply, and fluctuating economic conditions.
Looking ahead to 2025, analysts predict continued growth in renting as high mortgage rates persist, while the increase in multifamily housing supply may help stabilize rental prices.
Seasonal variations will also likely remain a key factor, with more properties coming on the market at certain times of the year, presenting timing opportunities for investors.
Additionally, the growing popularity of remote work and the entry of more Gen Z renters into the market are expected to fuel demand for work-from-home amenities, digital payment systems, and online management platforms. These trends highlight the importance of offering modern, flexible rental solutions to attract a tech-savvy tenant base in 2025.
Several specialized platforms provide comprehensive and up-to-date market data with reliable information on pricing trends, rental rates, and market dynamics for real estate investors. Here are some of the best tools you can use:
1. Mashvisor
Mashvisor offers insights such as:
Mashvisor’s user-friendly interface and advanced analytics make it a go-to platform for investors who want to streamline their market research.
2. Redfin
Redfin is a well-known real estate platform with features such as:
Redfin’s data is frequently updated and provides a detailed overview of market conditions, making it an invaluable tool for investors tracking local market trends.
3. Zillow Research
Zillow Research offers an extensive library of real estate data and insights. Some of the key features include:
Zillow Research’s detailed reports and large dataset make it an excellent resource for tracking both national and local rental market trends.
The Sunbelt region has been a consistent favorite among real estate investors due to its favorable climate, booming economies, and attractive cost of living. These cities continue to experience a steady influx of new residents, driven by the growing tech and service industries, coupled with affordable housing compared to traditional coastal markets.
With ongoing infrastructure development, job creation, and quality-of-life improvements, Sunbelt cities remain ideal for long-term rental investment in 2025.
Austin has cemented itself as a leading tech hub, attracting a large number of professionals, startups, and tech giants, including Tesla and Oracle. This influx has driven rental demand, particularly for properties close to downtown and tech corridors.
The city’s cultural appeal, with a thriving arts, music, and food scene, also continues to draw in a young, affluent population. With steady population growth and a booming economy, rental yields in Austin are expected to remain strong.
Phoenix’s affordable cost of living, combined with a rapidly expanding economy, has made it a magnet for both residents and businesses. Key sectors fueling the job market include healthcare, technology, and manufacturing.
Phoenix also benefits from a warm climate and attractive outdoor lifestyle, appealing to retirees and young professionals alike. As demand for housing remains high and new developments emerge, the long-term rental market will offer solid growth potential.
Atlanta offers a perfect blend of affordability and opportunity. With its diverse economy spanning tech, film, logistics, and finance, it has become a top destination for job seekers. Major corporate headquarters and startups continue to drive population growth, while new infrastructure projects, such as expanded public transit, enhance livability.
For investors, Atlanta provides a range of property types—from single-family homes to urban apartments—that appeal to different renter demographics.
The COVID-19 pandemic accelerated the trend of urban flight as renters started looking for larger homes and quieter neighborhoods in suburban areas.
In 2025, this demand for suburban rentals remains high, driven by remote work trends and a desire for more space at lower costs. Smaller suburban markets near major metropolitan areas have the perfect blend of accessibility and tranquility, making them prime locations for long-term rental investments.
Located just north of Dallas, Frisco has transformed into a dynamic suburban market with top-tier schools, extensive community development, and an appealing lifestyle for families.
Its proximity to major employers in the Dallas-Fort Worth metroplex makes it a highly desirable rental market. Continued population growth and new commercial developments signal a healthy outlook for long-term investments.
Overland Park is known for its high quality of life, low crime rates, and excellent schools. It is situated near Kansas City and has an attractive suburban lifestyle with easy access to a growing job market. Its relatively low property prices and stable economy make it an excellent choice for investors seeking reliable, long-term rental income.
Lakewood, a suburb of Denver, combines scenic beauty with proximity to a central metropolitan area. With easy access to outdoor activities in the Rockies and a growing population of remote workers, Lakewood has seen increased demand for rental properties. The area also benefits from Denver’s economy, providing job opportunities in various sectors, including tech, healthcare, and energy.
Tech hubs remain attractive for rental investments due to high salaries and a steady influx of young professionals. While affordability can be challenging, strong job markets and rental demand ensure stable cash flow and long-term property appreciation.
Seattle’s economy is anchored by tech giants like Amazon and Microsoft, as well as a thriving startup scene. Despite relatively high property prices, demand for rentals remains strong, particularly in neighborhoods close to tech campuses and urban centers. Investors can expect consistent occupancy rates into 2025 and beyond.
San Francisco, while expensive, continues to attract a large number of high-income tech workers. The city’s tech-driven economy ensures a strong demand for rentals, particularly in desirable neighborhoods. Although property acquisition costs are high, investors can benefit from high rental yields and long-term appreciation.
Raleigh-Durham, part of North Carolina’s Research Triangle, is experiencing rapid growth in its tech and life sciences industries. The area offers an attractive cost of living compared to other major tech hubs, making it appealing to both renters and investors.
With a young, educated population and ongoing economic expansion, Raleigh-Durham is set to remain a top rental market.
Midwest cities are increasingly becoming investment hotspots due to their affordability and lower competition than coastal markets. These cities provide a steady stream of renters, particularly young professionals and families looking for more affordable living options.
Columbus boasts a diverse economy, with strong sectors in finance, education, and healthcare. The city’s affordable housing market and steady population growth have made it an attractive destination for renters. Investors can find properties at relatively low prices while enjoying solid rental yields and low vacancy rates.
Des Moines has experienced steady population growth over the past decade, thanks to a booming insurance and financial services sector. Companies like Principal Financial Group and Wells Fargo maintain a strong presence in the city, providing job opportunities and attracting new residents.
Des Moines also offers a relatively low cost of living and high quality of life, making it an appealing option for renters. With a growing downtown area and expanding suburbs, the city presents a stable rental market with room for long-term appreciation.
Milwaukee’s affordability and strong local economy make it a promising market for long-term rental investments. The city has seen significant downtown redevelopment, including new residential and commercial projects, revitalizing the urban core.
With a strong job market driven by manufacturing, healthcare, and brewing industries, Milwaukee offers investors the opportunity to secure properties at lower prices while enjoying solid rental income. The city’s proximity to Chicago also makes it appealing for commuters seeking lower living costs.
Indianapolis has long been considered one of the most affordable major cities in the U.S. The city boasts a growing tech scene and a strong job market in logistics, healthcare, and manufacturing. Its central location also makes it a hub for the transportation and distribution industries.
With an increasing population and expanding suburban developments, Indianapolis offers diverse investment opportunities, from downtown apartments to suburban single-family homes. Its relatively low property taxes further enhance its appeal for investors.
Kansas City has experienced a resurgence in recent years, with ongoing investments in infrastructure, business development, and cultural amenities. Known for its affordable housing and vibrant arts scene, the city attracts a mix of young professionals, families, and retirees. Rental demand is particularly strong in the downtown core and suburban neighborhoods, making Kansas City a well-rounded market for long-term investments.
Cleveland is another city that has seen a revitalization of its downtown area, with new restaurants, entertainment venues, and residential developments attracting young professionals.
The city remains one of the most affordable major markets in the U.S., and its healthcare sector, anchored by the renowned Cleveland Clinic, continues to drive economic stability. Investors can find properties with attractive price-to-rent ratios, offering good cash flow potential.
The backbone of any successful rental investment is solid rental demand—you want to be in a place where people are actively seeking housing, whether they’re young professionals working at nearby companies, families settling into good school districts, or retirees looking for comfortable living.
Beyond rental demand, other areas to think about for long-term rental investments include:
With record multifamily supply, rising demand, and regional variations in rental growth, investors have a unique opportunity to capitalize on the evolving market dynamics in 2025.
By focusing on high-growth areas like Sunbelt cities, suburban hotspots, and tech-driven markets, while staying informed on trends and leveraging data tools, you can make well-informed, profitable long-term rental investments. Stay flexible, stay informed, and position yourself for success in the year ahead.
