In December, the rental market showed promising signs of stability among indepen

In December 2024, the rental market showed promising signs of stability among independently operated units, with on-time payments increasing by 19 basis points (bps) to 85.7%. This marks the fourth consecutive month of gains, with a cumulative improvement of 53 bps since August. Although on-time collections have fallen year-over-year for 17 straight months, the December annual change of -19 bps is the smallest decline in over a year, signaling a potential turning point. The forecast full-payment rate, which includes on-time payments, late payments, and expected late payments, rose significantly by 60 bps to 95.5%, continuing a trend of recovery after a challenging period.

Performance by property type highlights the relative strength of 2-4 family rentals, which achieved the highest on-time payment rate of 86.3% in December. Single-family rentals followed closely at 86.0%, while multifamily properties lagged slightly at 85.6%. However, all three categories recorded month-over-month improvements, with 2-4 family rentals seeing the largest gain of 30 bps. Geographically, the Western U.S. remains the strongest performer, with Utah (93.5%), Idaho (93.4%), and Washington (92.8%) leading the country in on-time payment rates. New Hampshire, at 91.3%, is the top-ranking non-Western state, underscoring regional disparities in rental performance.

The report emphasizes that December’s improvements reflect broader stabilization trends in the rental market. While the full-payment rate still has room to recover to its early 2023 peak of 97.2%, the current trajectory suggests cautious optimism for independent landlords. These trends are bolstered by technological advancements from platforms like RentRedi, which streamline property management, improve payment tracking, and support landlords and tenants in optimizing the rental process.
Chandan Economics’ data, sourced from a sample of 100,516 units, provides a critical benchmark for understanding the dynamics of non-institutional rental properties. These insights help landlords, investors, and policymakers navigate the evolving landscape of rental housing, offering valuable tools for decision-making in a market that continues to adapt to economic shifts and tenant behaviors.