In today’s housing market, rentals should no longer be treated as the “dirty little secret” of real estate. Far too often, rentals are overshadowed by for-sale properties, yet they play a critical role in the broader housing ecosystem. Rentals are not only essential for millions of Americans who rely on them as their primary housing option, but they also deserve equal attention in terms of their importance to agents and within the housing lifecycle.
The growing significance of rentals
As of 2024, the United States has reached an all-time high of 22.4 million renter households, with half of these households spending more than 30 percent of their income on rent and utilities, according to the Joint Center for Housing Studies at Harvard University. This marks an increase of 2 million households since 2019, pushing up the share of cost-burdened renter households to 50 percent, a 3.5 percentage point increase from 2019. These statistics underscore the critical need for a more balanced focus on rentals within the housing market.
Enhancing visibility and data access
Historically, the real estate industry has been focused predominantly on homeownership, often neglecting the importance of rentals in the housing market and homeownership journey. However, with rental demand soaring, rentals are increasingly a fundamental part of the housing landscape, and they deserve to be given the same attention and resources as homes for sale.
One of the most pressing issues is the visibility of rental listings. Often rentals do not receive the same exposure or marketing efforts as for-sale properties. This discrepancy impacts agents, landlords, and tenants alike. To correct this, Multiple Listing Services (MLSs) should make a more concerted effort to incorporate rental listings more seamlessly and intuitively into their platforms, ensuring equal visibility alongside sales properties. This means improving the implementation and search functionality to allow users to provide as well as access consistent and accurate listings. By creating a more seamless, user-friendly and uniform platform for both markets, MLSs can help streamline the rental process, making it easier for agents to utilize the system and simpler for renters to find homes.
Examples of MLSs leading the way
Several MLSs are already making strides in integrating rental data more seamlessly. For example, BridgeMLS, serving the San Francisco Bay Area, has successfully incorporated rental listings alongside sales properties within their platform. By standardizing rental data (including pricing, availability, and lease terms), they allow agents to efficiently manage both rental and sale transactions without the need for separate systems.
At the California Regional Multiple Listing Service, rental listings are now included in the same search results as for-sale properties, with specific rental filters and search parameters designed to enhance both agent and consumer experiences. This integration allows agents to work across both markets and present comprehensive solutions to their clients, all within the same platform.
These examples demonstrate that a seamless approach to incorporating rentals can provide better access to data, reduce complexity for agents, and improve the rental experience for all parties involved.
Data standardization and best practices
Another critical area is data availability. The for-sale market benefits from a wealth of accessible data while the rental market can often lack more in-depth consistent analysis. Rental listings now make up nearly 30 percent of all real estate searches, according to Zillow, highlighting the increasing demand for data-driven solutions in the rental market. MLSs should focus on standardizing rental data in the same way they do for sales properties. Providing this type of data will allow agents to offer better guidance and insight to their clients, while also fostering a more competitive and fair rental market.
Developing tools for a seamless experience
Equally important is the availability and marketing of tools that support both agents and consumers in the rental market. As technology continues to revolutionize real estate, tools tailored to rentals must also evolve. From online tenant screening, rent payment and credit-building tools to virtual tours, these tools can help simplify and streamline and supercharge the rental process for all involved. But it’s not just about convenience; the right tools can empower agents to manage both rental and sale listings effectively, giving them a more well-rounded approach to serving their clients.
Integration is key
Rentals should be treated as an integral part of the housing market, not an afterthought. By giving them the attention they deserve—through standardization and greater visibility, more robust data, and enhanced tools for both agents and consumers—we can create a more balanced and efficient housing market for everyone involved. It’s time to stop treating rentals as a secondary concern and start embracing their true value within the real estate ecosystem.
Michael Lucarelli is the CEO of RentSpree.
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.
To contact the editor responsible for this piece: zeb@hwmedia.com.
