Consider Renting When It’s Not A Seller’s Market
📉Home Prices are Cooling
According to the S&P CoreLogic Case‑Shiller Index, home prices increased just 2.8% annualized in May 2025, with a monthly dip of 0.3%—the slowest gain in nearly two years.MarketWatchBarron's
In many hot Sunbelt markets like Tampa, Austin, and Miami, prices are declining. Tampa saw a 2.4% drop year-over-year—ouch.Barron'sMarketWatch
Transaction volumes are shrinking, inventory is up almost 30%, and over 20% of listings are facing price cuts.MarketWatchMarketWatch
With mortgage rates hovering around 6.7–6.8% for a 30-year fixed, affordability is tanking for buyers. Sellers can’t hit their target prices easily, and buyers can’t afford your home—they’re likely busy paying off student loans in cryogenic sleep.AP NewsThe Mortgage ReportsFRED
🏠 Renting as a Savvy Alternative
If selling feels like bad timing, renting your property—even temporarily—can turn lemons into lemonade 🍋. And the best news is that you don’t have to go into renting alone. UpVibe Pros can set your property up to attract fabulous renters and set you up for success.
Starting a conversation with an UpVibe pro is free! You can learn a lot about maximizing your profits and decreasing your stress in both the short-term or long-term rental market.
🕒 Short‑Term Rental Option (Airbnb style stays)
Let’s say your home in Tampa typically sells for $400K but the market only offers $360K—that’s heartbreaking.
Instead, rent it nightly at $200/night. With 50% occupancy, that’s roughly $36K annually—taxable income but far better than a 10% loss.
Throw in cleaning fees, and your friend’s reaction: “Why aren’t I also renting out my home?”
Bonus: You wait for interest rates to dip (experts expect modest declines late 2025 into 2026), then you either sell or refinance into a lower rate. KiplingerBusiness Insider
📅 Long‑Term Rental Option (Year leases)
Rent your cooling-market home (say, in Dallas) at $2K/month = $24K/year, potentially more than a traditional sale yield.
Meanwhile, the property appreciates gradually or rents increase over time. You get cash flow and flexibility.
🔮 Interest Rate Outlook for Late 2025–2026
According to Kiplinger’s forecast, the Federal Reserve is unlikely to cut rates before late 2025, with yields steady into 2026 and a gradually upward-sloping curve expected by end‑2026. Kiplinger
Jeff Greene warns that mortgage rates near 7% are suppressing activity—and both buy and sell pipelines remain frozen in cautious waiting. Business Insider
Bottom line: expect 30‑year fixed rates to stay above 6% through 2025 and into 2026, with only modest easing.
🗺️ States with Real Estate Slowdown Already
Florida (Tampa, North Port, Miami, Jacksonville): prices falling 2–12%.Barron'sYahoo FinanceMarketWatch
Texas (Dallas, Austin): modest declines (~0.6%).Barron'sMarketWatch
California (San Francisco metro): also down ~0.6%.Barron'sMarketWatch
Denver, others: mostly flat; Northeast/Midwest are holding up better with cities like New York up 7.4%, Chicago up 6.1%.Barron'sMarketWatch
Southern and Western markets are the softest, giving landlords opportunities where sellers are struggling.
🛠️ U.S. Economic Climate: Jobs, Layoffs & Unemployment
Job openings down: 7.4 million in June, down from 7.7M the month prior. Hiring dropped by 261K. ReutersAP News
Unemployment likely rising: from 4.1% to around 4.2–4.3% in mid‑2025. Some projections go up to 4.8% by early 2026. ReutersThe Economic TimesEY
Layoffs remain moderate, easing slightly to about 1.6M but federal agencies have implemented mass cuts—over 128K federal jobs cut or targeted by June 26, including agencies like HHS, IRS, DOE. ReutersWikipedia
Unemployment claims dropped to a three‑month low (~217K), though hiring sentiment is cautious. Reuters
So while layoffs aren’t skyrocketing, hiring slows, unemployment ticks up, and the broader economy is cooling. That impacts both housing demand and rental uptake—but rentals may remain stable as some households downsize.
🤡 Play Out This Example
Imagine Mimi in Miami bought a cozy home at the peak—then the market tipped. She needs to sell and expects $500K, but market says $450K. Selling would leave Mimi in Miami mad and possibly upside down.
Instead, Mimi lists her cozy home on Airbnb for $250/night. With modest occupancy, she rakes in $30K annually—plus cleaning fees.
Mimi uses funds on a new US made, gas fueled Ford (with the 6.7% loan) and writes off some of the interest.
Renters enjoy the good life in the Florida sunshine.
And eventually Mimi sells when rates cool in 2026—and she gets her $500K pay out that makes her whole.
Meanwhile, her over reactive neighbor sells in a panic and for 50k less than Mimi.
🧾 Final Thoughts
When it's not a seller’s market, renting—especially short‑term—can be surprisingly profitable. You postpone selling, generate income, and potentially wait out the rate plateau. As rates stay high (6.7–6.8%) into late 2025 and even 2026, renting offers a smart bridge to better conditions. AP NewsKiplinger If your asking price won’t fly, let the rental cash flow cushion the wait—just keep cleaning supplies stocked and Airbnb photos Instagram‑ready. And ask the experts at UpVibe Pros to the set up to maximize those profits.
📎 Economic & Housing Headlines
Further reading on U.S. housing & jobs.
Average long-term US mortgage rate eases to 6.74%, keeping home loan borrowing costs elevated
