• Rent growth has been accelerating in recent months, though prices are still in check.
• Apartment affordability could get stretched during a seasonally busy spring.
• Here are a dozen large US cities where rent is becoming more affordable.

Tenants should be on guard, as a brief winter slowdown in the rental market may end soon.

Rent growth rose on a year-over-year basis at the fastest pace in over 12 months in February, according to fresh rental data from listings site Zumper. One-bedroom fixtures were 2.9% more expensive than last year at $1,525, and two-bedroom units surged 3.7% to $1,905. Last month, rent increased by 2.5% and 3.2%, respectively, compared to the start of 2024.

That swifter growth "is a nod to how much demand there is across the country, even at a time of record-high supply," said Zumper's Crystal Chen, who authored the report, in a message to Business Insider. Her firm said last summer that new apartment supply had hit a 50-year high.

Curiously, apartments were actually slightly cheaper this month than in January, when the median rate for one-bedroom setups was $1,534. The same was true last year, as going rates for one-bedroom apartments fell from $1,496 last January to $1,482 in February 2024.

But renters shouldn't count on more affordable apartments — in fact, the opposite may be true.

Back-to-back years of rent sliding from January to February could simply mean that more leases end in the first month of the year. A smaller pool of tenants deciding to move or re-up could translate to softer rental demand, which would temporarily cause apartment prices to pull back.

However, that relief likely won't last long, as price growth resumed in March before taking off in the late spring and early summer. Either way, the difference in median rents at the national level was just a few dollars in either direction, which is unlikely to be a major tipping point.

"Rents staying pretty flat on a monthly basis is pretty on trend with this time of year," Chen told BI. "Winter months see lower rental demand, so even as some leases end, limited competition keeps prices relatively stable until the busier spring and summer seasons."

12 top cities for deal-minded renters

Apartment prices in the 100 largest US cities that Zumper tracks each month foreshadow what's ahead for shelter inflation, which rose at the slowest rate in three years in January. But Zumper researchers are wary of leaning on lagging indicators more than their proprietary price data.

"Although shelter inflation has eased in recent months, its lagging nature — due to the way it's calculated — means the full impact has yet to be realized," said Zumper CEO Anthemos Georgiades in a statement for the report. He added: "The annual rent increases seen in our most recent data are likely to be reflected in CPI metrics over the coming months."

More than two-thirds of the biggest US rental markets experienced rent increases in February, up from just under that mark in January. Price hikes were most prevalent in regions with fewer available apartments, like the Northeast and Midwest, Chen remarked.

Conversely, higher-inventory cities in the once-trendy Sun Belt region saw some of the largest drops, though those declines were tempered relative to early 2024.

Business Insider analyzed Zumper's latest rental data and found a dozen cities where rent for one-bedroom apartments is both below the national median of $1,525 and down more than 1% from February 2024. Below are those 12 cities, along with their median rent, year-over-year and month-over-month rent changes, and the cost savings for renters versus the national median.

• Homebuyers and renters have had plenty of frustrations in the last few years.
• However, affordability improved by one key measure in 2024.
• Here are 11 major US cities where buyers and renters can save more money.

Affordability remains a major problem in the US real-estate market, but buyers and renters are getting a bit more breathing room in several major cities.

Millions of Americans were less than thrilled with their living situations in 2024 — a year marked by limited property transactions due to stubbornly high mortgage rates and inflated home prices.

Those looking to buy houses largely held off, which frustrated the homeowners looking to move. Younger renters were especially unlikely to purchase property, and although they've benefited as rent has steadily fallen from its post-pandemic peaks, it's still much more costly than in 2019.

However, recently released rental data from Realtor.com shows a few silver linings for both homebuyers and renters. The research firm found that median rent in the US declined on a year-over-year basis for the 18th straight month, even though the drop was modest at -0.2%.

But the biggest takeaway is that affordability improved in a majority of the 50 largest US cities tracked by Realtor.com, as measured by the change in the share of money spent on housing.

Rent was a smaller percentage of budgets compared to 2023 in over 90% of major markets, Realtor.com found. And homebuyers put less of their income toward mortgage payments than they would have the year before in nearly two-thirds of the biggest metropolitan areas.

While massive cities like San Francisco and Miami aren't known for affordability, Realtor.com's findings indicate that buyers and renters there are able to save more money staying there than they would have a year prior, since the share of income going to landlords or lenders is smaller.

11 cities where affordability is improving

There are 11 cities where buyers and renters put a substantially smaller chunk of their money toward mortgages or rent on a percentage-of-income basis in 2024 versus the year before, according to Realtor.com. In each, the change in the share of income spent on buying or renting fell by at least 1.5 percentage points.

It's commonly accepted that people should spend 30% or less of their salary on housing costs. Buyers and renters are far exceeding that mark in some of the more expensive cities on this list, though everyone's financial situation is different.

Below are those markets — sorted by lowest rent to highest — along with each's median rent, the year-over-year change in rent, the share of income spent on rent and home purchases, and how that share has changed compared to the prior year.

• Property values fell by about 2% in January as mortgage rates remained high.
• Buyers appear to be waiting for affordability to improve.
• Here are 31 cities that are getting the most attention from buyers so far in 2025.

The US housing market is still in hibernation mode as aspiring homebuyers continue to hold out for lower mortgage rates and property prices, though some markets are as popular as ever.

A seasonally quieter stretch in the real-estate market is off to a sleepy start. Home prices slid 2.2% in January from the year before, Realtor.com researchers noted late last month, in part because the 30-year fixed mortgage rate had topped 7% for the first time in over seven months. Borrowing costs are now at 6.9%, still higher than the 6.6% rate in early 2024.

Slightly cheaper property prices may help some buyers get their feet in the doors of new houses. But if mortgage rates remain this restrictive, many more may still be sidelined. That would mean falling home values are both a letdown for owners and not enough to help would-be owners.

"Buyers are really facing a double-whammy on affordability at this point," said Hannah Jones, a senior economic research analyst at Realtor.com, in a recent interview. On the national level, she said succinctly that "the typical buyer cannot afford the typical home."

Surging home inventory is also weighing on prices. Housing construction has boomed, which contributes to the 24.6% annual jump in active listings that Realtor.com observed in January. Having more options makes buyers choosier, as they don't have to buy the first home they see.

However, there are signs that this frosty market is thawing — at least in certain regions.

31 highly popular cities among buyers

Although higher mortgage rates are a headache, buyers have still flocked to a few dozen cities so far this year.

Realtor.com just published its updated list of the hottest US housing markets, which is based on how long home listings stay on the market and how in-demand they are, as measured by traffic on its website. The more unique property views, the higher a city's ranking is.

Home listings in the 20 most in-demand markets received about 2.6 times the demand of typical US homes last month, and sold three weeks earlier than the US median property. That strong demand drove prices up 1.5% from the year before in January.

What's fascinating is that all 20 of those hot cities were in either the Northeast or Midwest, which differs from Business Insider's research showing that eight of the 10 most-popular cities of 2024 were in the Southeast. However, Jones remarked that Northeast and Midwest markets have stood out since mid-2022, which is when mortgage rates first spiked.

"The Midwest, and some of these Northeast markets, are just outright affordable, relative to the rest of the US," Jones said. "Relative to local incomes, they're also relatively affordable. These are areas that just would appeal to anyone locally or elsewhere because homes are relatively low-priced."

While some of these hot markets are much more expensive than the US median price of $400,500, Jones noted that they're still a good deal compared to nearby cities. For example, the hottest location in January was Manchester, New Hampshire, which has a median home value of $578,975 that's far cheaper than nearby Boston's typical price tag of $799,450.

Buyers looking to leave major cities often look to nearby markets. When that happens in droves, it drives that town's relatively low prices far higher — creating a paradox of sorts.

"In these more affordable markets, inventory is still really low relative to pre-pandemic," Jones said. "Which means that a lot of buyer demand is coming into relatively few homes."

Notably absent from Realtor.com's list of hottest markets is the Sun Belt region, which boomed early in the pandemic but has since seen prices come back to earth as supply started to surge.

"They got so hot and so popular that prices were able to rise to a point that buyers would no longer participate once mortgage rates came up," Jones said of properties in Sun Belt cities. "Prices are still really high in a lot of those markets, but inventory levels are high."

Home supply in those 20 hot markets rose 12.7% to start the year, and while that's a substantial jump, it's nearly half the rate of the national median. Also, there are about half as many home listings in these popular cities as there were before the pandemic.

Business Insider examined Realtor.com's data further and found that the 31 most popular cities in January were all either in the Northeast or Midwest, and 22 are cheaper than the US median.

Below are those markets, along with the multiple of property viewership versus the US median, the median days on the market in early 2024 and 2025, and the median listing price as well as how it compares to the US median price of $400,500.

• Those who procrastinated on property purchases may be kicking themselves.
• Both mortgage rates and home values have risen in the past year.
• However, there are 16 US markets where prices are below the median and falling.

Although aspiring homeowners may have thought it was smart to put off purchases last year, that decision seems to have backfired.

Home affordability was challenged again in 2024, which real-estate analyst Ivy Zelman said was the toughest year for first-time buyers in four decades.

Mortgage rates are even more restrictive now than they were 12 months ago. Thirty-year fixed rates are at 6.9%, up from 6.6% last February and far higher than the late-September lows of 6.1%, while 15-year rates are at 6.1% compared to 5.9% at this time in 2024.

Home values have also risen substantially in that span. The going rate for existing single-family homes in the fourth quarter was $410,100, which was 4.8% higher than the year prior — though it's modestly lower than the peak of $422,100 in the second quarter.

Property price appreciation has been widespread. Last quarter, home prices were up in 89% of the 226 US markets tracked by the National Association of Realtors, the firm revealed in a February 6 report. And 14% of US cities saw sale values rise at a double-digit pace, which was twice the rate of the prior quarter. Only 23 cities saw prices head in buyers' direction.

Buyers hoping to settle down in the Northeast or Midwest may be most frustrated. Prices rose 10.6% and 8%, respectively, in those regions, versus 4% in the West and 2.1% in the South.

In the last five years, mortgage rates have almost exactly doubled from just under 3.5%, and median property prices are up 49.9%, according to the NAR. Home values will almost certainly never fall that far again, and it's unlikely that mortgage rates get back there anytime soon.

That's especially tough news for those who want to build home equity sooner rather than later.

"Renters who are looking to transition into homeownership face significant hurdles," said Lawrence Yun, the NAR's chief economist, in a statement for his firm's quarterly housing report.

16 top cities for buyers on a budget

Even in this challenging market, there are some silver linings for buyers.

Home affordability might not be spiraling, according to the NAR, which found that monthly mortgage payments were actually down for existing homes on 20% down payments. The firm said the typical rate was $2,124, which is 1.7% lower than in late 2023 and 0.8% less than in Q3. Owners also put less than 25% of their income toward mortgages — just below past levels.

Another promising sign is that there are several markets where houses are both cheaper than the national median and falling on a year-over-year basis.

Below are those metropolitan areas along with their yearly change and price history, with median sale values for every quarter of 2024, the projected level for 2024 as a whole, and the median value for the fourth quarter of 2023.

• Novelty prop bets around the Super Bowl are centering on Taylor Swift this year.
• Many of these bets are on unregulated sites since it's generally not legal to offer them in the US.
• Legal US betting apps are getting in on the action in other ways, including with "Swiftie Specials."

Will Travis Kelce propose to Taylor Swift on the field after the Super Bowl? Will Swift take the stage during halftime?

With the Kansas City Chiefs in the Super Bowl and Swift expected to be in the audience, many novelty prop bets this year are centering on the megastar. Gamblers are betting on everything from how many times Swift will appear during the broadcast to what she'll wear.

These bets are happening, for the most part, on offshore platforms — sites like Bovada and BetOnline — that are unregulated and can't operate legally in the US.

While sports betting is legal in more than 30 US states, regulators have strict rules on what Americans can wager on. Prop bets — or wagers on outcomes other than who will win or lose a game — are generally limited to the action in a sporting event and events with definitive outcomes. The limitations vary by state.

But legal gambling operators in the US don't want to miss out entirely. While they can't craft bets around Swift's actions, they're trying to pull her into prop bets focused on star players.

DraftKings, for instance, has a menu of over 30 "Swiftie Specials." These are typical prop bets but named after Swift songs. They include the "Shake It Off," which has the Philadelphia Eagles scoring first and the Chiefs to win. The "Mine" bets Kelce will get 87 or more receiving yards and score one or more touchdowns. The "I Knew You Were Trouble" wagers that the Eagles running back Saquon Barkley will get 250 or more rush and receiving yards. And the "Deja Vu" has the Chiefs winning by exactly 3 points. (While the song is sung by Olivia Rodrigo, Swift has a cowriting credit.)

"We're seeing a lot of interest on the Taylor Swift-related special, so we're very excited to roll those out," DraftKings' chief marketing officer, Stephanie Sherman, told Business Insider.

The betting operator Bet365 has similar offerings, including the "1989" on Kelce to have a reception for 19 or more yards and 89 or more receiving yards, as well as the "22" on the Chiefs tight end to hit a record 22-plus receiving yards in each half.

In North American markets like Ontario, where the restrictions are a little more lax, operators like FanDuel and BetMGM legally can — and are — offering bets on whether Kelce will propose on the field.

"If there's an opportunity to leverage her fame and her involvement with Kelce and the Kansas City Chiefs and her being at the game and being part of the broadcast, I think people are going to try to pull this off," Jason Logan, a senior analyst at the gambling affiliate site Covers.com, told BI.

Why you can't legally bet on a Kelce-Swift proposal in the US

The restrictions against many types of prop bets in the US are largely set up to prevent markets from being manipulated. For example, members of Swift's inner circle might be privy to what the artist plans to wear to the game.

"That's the nightmare scenario for gaming control boards," Logan said. "Someone knows that information and can leverage it to manipulate the markets."

That's why legal operators like DraftKings or FanDuel can't offer bets in the US on whether Swift will appear onstage with Kendrick Lamar during halftime, for example.

Swift isn't the sole focus of this Super Bowl's novelty prop bets. Gambling operators are also taking wagers in some US states on the coin toss, which is related to the action in a game and has a definitive outcome. Other novelty bets available legally in places like Ontario — and offered by some offshore sites — include how long the national anthem will run and the color of the Gatorade bath.

The American Gaming Association estimates that Americans will wager a record $1.4 billion legally on Super Bowl LIX. Some analysts have pegged the figure even higher, at about $1.7 billion.

With that much at stake, it's easy to see why companies like DraftKings are chasing Swifties this year. The star has helped bring in a new fan base for the NFL since she began dating Kelce and showing up to support him at games. Last year, a 24% spike in 18- to 24-year-old women viewers helped drive a record 123.7 million average viewers for the Super Bowl, Sportico reported, citing Nielsen data.

Betting apps want a piece of that pie.

"They're trying to leverage that interest, the cross-the-aisle interest, bringing in fans that might not be big football fans," Logan said.

• Fox's free streaming service, Tubi, will broadcast its first Super Bowl this weekend.
• The service has gained market share but still faces stiff competition for free and low-cost viewing.
• Tubi's marketing chief dove into how the service is planning to capitalize on the Big Game.

The Kansas City Chiefs and Philadelphia Eagles aren't the only ones getting ready for the Super Bowl.

Tubi, the Fox-owned free streaming service, is preparing to air the Big Game for the first time. But its sights are set on what happens after the final whistle.

Tubi marketing chief Nicole Parlapiano told Business Insider that the service wants to show viewers and advertisers that it has reached its "credibility era" as a destination for high-quality entertainment.

"I think there can be a stigma on the free services," Parlapiano said. "People think, if it's free, it must not be premium or might not have the things they want. So getting them on the product to see that isn't true is extremely powerful."

She added that Tubi wanted to demonstrate to advertisers that free TV is something people view intentionally and not just in the background.

Tubi will simulcast the Chiefs-Eagles clash produced by Fox Sports in 4K on any phone, computer, or connected TV — with no credit-card information or account set-up required.

Parlapiano said the streamer would also air its own shoulder programming for people who aren't sports fanatics but want to participate in the Super Bowl as a cultural event. These will be promoted via a tile in the app. The highlight of this effort will be a fashion-focused pre-game show hosted by influencer and model Olivia Culpo. Her husband, Christian McCaffrey, played for the San Francisco 49ers in last year's Super Bowl.

"If you are one of the girlies who doesn't care about anything besides who's there and what they're wearing, then it'll be very clear that's the place for you," Parlapiano said.

From 'stunty' growth to maturity

Tubi launched in 2014 and was acquired by Fox in 2020 for $440 million.

It was the fastest-growing streaming service in 2023 and is especially popular among Gen Z. The service said in 2024 that it had reached 97 million monthly active users. Tubi made up 1.7% of TV viewing in December, according to Nielsen. That put it ahead of some major paid services like Peacock, Paramount+, and Max.

"People know that we've gotten bigger, but they don't know why," Parlapiano said. "I want to leave that not as a question after this night."

Many may already associate Tubi with the Super Bowl, thanks to a breakthrough commercial. When Fox last carried the Big Game two years ago, the streamer created panic with what Parlapiano called a "stunty" ad that made many people think that someone had sat on the remote.

"We took a lot of risks back then, and it kind of set the pace for how we approached the business in the past two and a half years," Parlapiano said.

Tubi's marketing team took a more conventional approach to this year's Super Bowl. Its campaign features 15- and 60-second ads promoting Tubi as a streamer for specific viewing interests and will also promote new licensed offerings like "Dune" and original programs like "Sidelined: The QB and Me," "The Thicket," and "The Z Suite" — a new Gen-Z workplace show.

Tubi has tried to set itself apart from other services by serving up a vast library of subgenres and cult favorites. To keep costs down, it licenses most of its content except for a small portion of originals.

How Tubi views sports and live events

Fox has streamed sports on Tubi before when it wanted to get extra reach for games or didn't have room in its own schedule for them. It has streamed some Mexico Liga MX games, for example.

Patrick Crakes, a media and sports consultant, said streaming the Super Bowl on Tubi has benefits for the league and Fox's advertisers, too.

"They'll reach some people who didn't have the pay TV bundle," he said. "Everything Fox can drive to Tubi is incremental to them."

Tubi is a sub-scale streamer that's still not profitable. While airing live sports can make sense when there's an intersection with culture, it's not pushing into acquiring its own live (costly) sports. Fox is generally looking elsewhere for streaming options for its sports content. It's planning to launch a new paid streaming service and has a forthcoming skinny bundle with Disney's Fubo.

"Having live sports all the time is a completely different muscle," Parlapiano said.

She called the Super Bowl simulcast more of a stunt than a strategy change. She added that if it helps retain new viewers, Tubi could host more live events down the line.

"If there's opportunities where we can bring a frictionless entertainment experience to viewers, we'll always vet them," Parlapiano said.

• Leading researcher Meredith Whitney shared the trends she has her eye on this year.
• Consumer spending could surge, sparking a rebound for beaten-down retailers.
• In real-estate, a key trend that Whitney had highlighted is now no longer likely.

Nearly two decades after her prescient warnings about the financial crisis, Meredith Whitney remains one of the more widely followed research analysts in markets.

Although no one's calls are always correct, Whitney is known for bold, outside-the-box thinking that gets gears turning — like why young people could get a leg up in the housing market, or why remote workers secretly working two jobs were at risk of getting caught.

Business Insider recently caught up with the "Oracle of Wall Street," who shared in an interview the three under-the-radar economic trends she's watching most closely in 2025.

1. Consumer spending reaccelerates

After countless hours of studying the US economy, Whitney's highest-conviction call this year is that consumer spending will strengthen across income strata and keep growth humming.

"The takeaways are clearly that consumer spending strength is going to broaden this year, so that means it will accelerate," Whitney said.

In recent years, Whitney's research suggests that spending has been disproportionately driven by higher-income consumers and the mid-20s to late-30s cohort, whom she affectionately calls "avocado toasters." Whitney noted last May that their young people's spending far exceeds that of baby boomers, and she now estimates their discretionary spending is five to six times higher.

Contrary to what some might suggest, these whippersnappers may not be being irresponsible. Instead, Gen Zers and millennials have been largely shut out of the housing market due to high mortgage rates and may be making up for it with retail therapy — or simply because they can.

"The avocado toasters who don't own homes — this is the 24- to 38-year-olds who don't own homes — have more discretionary spend, because it's gotten so expensive over the last three years to own a home with rising homeowners' insurance, property taxes, homeowners' association fees," Whitney said.

Besides being unburdened by expensive mortgage payments, many young people are finding creative ways to team up and save money. Whitney pointed out that password sharing is the norm for younger generations, and even those who don't snag log-ins for streaming services or YouTube TV can stay on their parents' phone plans for $10 a month instead of $50 or more.

Other consumers are in a much different spot. Lower-income consumers have felt the highest inflation in a generation most acutely. In fact, Whitney said last spring that households making between $50,000 and $70,000 a year could only afford to save 0.3% of their post-tax income.

"What has been clear is that the 52% that have been living paycheck to paycheck — over 50% of the households — are really struggling," Whitney said.

Consumers could make a financial comeback this year if inflation fades and interest rates inch down, Whitney said. And while some economic observers are anxious that Trump's tariffs could cause prices to reaccelerate, Whitney didn't cite that as a major near-term risk.

2. Dollar-store sales boom

A long-awaited rebound for consumers, including those in the lower-income bracket, could spark a turnaround for beleaguered dollar stores and other struggling retailers, Whitney said.

"The dollar stores and all the discounters — and I'll throw Target into the mix; it's neither — will have a great 2025 and beyond," Whitney said. "They've been beat up for a number of reasons, but one of them has been that their primary customer really had a hard landing after COVID stimulus checks ended."

As Whitney noted, pandemic-era government aid and inflation were major tailwinds for dollar stores. Consumers of all income types flocked to Dollar Tree and Dollar General for their rock-bottom prices, pushing their shares to record levels. Dollar Tree's stock even doubled in the five months from late September 2021 to mid-April 2022.

But ever since, Dollar Tree and Dollar General have been dead money, with shares down 57% and 72%, respectively, from all-time highs. Inflation has become a major headwind by eating into profits on dirt-cheap products. Dollar Tree's earnings have been hammered, and Dollar General's operating income growth has been negative for seven straight quarters.

Dollar Tree and Dollar General's standing among investors went from bad to worse early last fall after alarming earnings reports. Both companies lost about a third of their market value as they slashed full-year guidance, blaming consumer spending weakness among income cohorts.

Whitney said she became bullish about dollar stores shortly after, and it's not because she was bargain-hunting. Instead, her research indicates that consumers may get more breathing room.

Since last summer, Whitney said property owners have increasingly taken out lines of credit from their home equity, which is a relatively cheap way to borrow money. Consumers can take this cash and use it to pay down their credit-card statement and other costlier bills, she added. Armed with money in their pocket and lower card balances, households can spend more freely.

"What I expected was this to have almost like a trickle-down effect," Whitney said. "It's happened a lot faster than I would've thought. So if you look at the same-store sales year on year, they've already picked up dramatically with the dollar stores and with Target. And when the retailers report, I think the investors will be surprised by how strong the results are."

3. Older homeowners stay in place

Whitney's most surprising take is one that's the opposite of what she believed a year ago.

The Oracle of Wall Street had spoken for years about a so-called "silver tsunami," reasoning that older homeowners would flood the housing market by listing their homes en masse. This would send property values plunging and allow younger buyers to swoop in at steep discounts.

But after examining more data, Whitney recently said that her theory is no longer likely.

Although the US population is still steadily aging, the researcher now expects older people to "age in place" instead of moving to ranchers, retirement communities, or nursing homes, which can be very expensive. Only about one in eight seniors can afford assisted living without tapping into their assets, Whitney noted, citing a 2023 Harvard study on housing older adults in the US.

Her change of mind comes as older property owners are seemingly deciding not to move. Instead, seniors are taking out lines of credit to renovate their homes. That could mean putting bedrooms in on the ground floor, adding walk-in tubs, or installing movable stairs, Whitney said.

If grandpas and grandmas across the country stay put, there will be fewer houses for younger buyers to choose from. That could be disastrous, if new home inventory wasn't rising like it is.

"Their best chance of owning a home is with new homes — not existing," Whitney said of younger homebuyers.

Millennials and Gen-Zers might not get the revenge over owners that Whitney thought was possible last year, but they'll likely be better off than in the least affordable market of their lives.

• Rents have soared in some major cities as return-to-office mandates go into effect.
• However, buying isn't an option for many young people since mortgage rates are high.
• Here are 11 cities with falling rent and plenty of entertainment options.

Scoring an enticing deal on an apartment doesn't have to mean settling for a boring city.

Many of the most popular spots among young people, from the New York City metro area to the Bay Area, are already astonishingly expensive — and prices only seem to be going higher.

New York, San Francisco, Jersey City, and San Jose were all among the five most expensive cities for renters in January, real-estate site Zumper recently found. Rents surged 5.9% from early 2024 in New York and between 7.1% and 11% in the Bay, though Jersey City's rent fell.

There are several reasons millennials and Gen Zers have flocked back to expensive cities since the pandemic. Some crave social connections, while others are increasingly required to by their employers after years of remote work. This latter reason may be the best explanation for why rents are surging in these major cities, which happen to be home to top tech companies.

"With the growing popularity of hybrid work among employers, as well as many large tech companies enforcing return-to-office policies of up to five days a week, many tech workers who may have previously left the Bay Area have likely made their way back," Zumper researcher Crystal Chen wrote in a late-January report.

Although the winter rental market is often quieter, as shown by slight rent declines from late last year, Zumper found that nationwide rents rose 2.5% and 3.2% for one- and two-bedroom units, respectively. Rents rose in 63 of the 100 largest US metropolitan areas that Zumper tracks, and a startlingly high 39 of those cities saw rent take off by more than 4%.

"The US has a ton of rental demand," Chen said in an interview, noting that high mortgage rates have sidelined many homebuyers. "Although we did have that 50-year-high of new supply last year, the demand will probably catch up to the amount of new supply that hit the market."

11 appealing cities for young workers

However, living in a large city with a bustling social scene won't necessarily break the bank.

While some may associate cheaper rent with sleepy towns that aren't in high demand, there are a number of cities well-suited for young professionals where rent is on the decline.

Business Insider analyzed Zumper's rental data and found 11 cities where one-bedroom rents have fallen 5% or more from early 2024. Eight are cheaper than the US median price of $1,534.

Each has a median age below the US-wide level of 38.5 years old, based on the latest US census data, and got an "A+" or "A" score in reviews site Niche's "good for young professionals" ranking. These cities have a slew of bars, restaurants, and other social hubs, and 10 of the 11 are home to at least one major professional sports team.

Below are each of those cities top cities for young people, along with the median rent and year-over-year rent growth for one- and two-bedroom apartments, as well as the median age and ranking in the "good for young professionals" category from Niche.

• Last year's housing market was the least affordable since the mid-1980s.
• Near-record prices and elevated mortgage rates kept many buyers out of the market.
• But leading real-estate analyst Ivy Zelman sees a massive silver lining for buyers.

Homebuyers have found a much-needed ally in this historically unaffordable housing market: homebuilders.

The housing market was flipped upside down in late 2022 as mortgage rates spiked to some of the highest levels in two decades in response to multi-decade-high inflation.

Higher borrowing costs combined with lofty property prices made buying an entry-level house last year the hardest since 1984, according to data from Zelman & Associates.

Those challenging conditions have seemingly made it impractical or impossible for millions of potential buyers to move. In turn, home sales have dried up, which is disappointing for hopeful homeowners, frustrating for sellers looking to relocate, and a headache for builders.

Homebuyers have an unlikely hero

Fortunately, it looks like there's a creative yet common-sense solution hiding in plain sight.

Homebuilders are increasingly bearing buyers' burdens when it comes to borrowing costs, real-estate analyst Ivy Zelman said in a recent interview with Business Insider.

Buyers are taking advantage of special offers from builders that bring their mortgage rate down from around 7% to 4% or 5%, Zelman explained. These so-called buydowns are a huge relief for buyers and can make the difference between deciding to close a deal and continuing to rent.

Zelman estimates that buydowns are now in place on the majority of entry-level home sales.

"Buydowns have been something — a tool — that builders have used historically," Zelman said. "So it's not a new phenomenon. But the magnitude of it, I'd say, is probably the most they've ever used it."

Builders would rather not buy down mortgage rates since doing so eats into their profit margins.

Business Insider analyzed the operating margins of five top homebuilders and found that all have fallen or flatlined since early 2022 — except for luxury homebuilder Toll Brothers. Although Toll Brothers also has buydown offers, it focuses on well-to-do buyers who may not need them. (Higher material costs likely also hurt margins, judging by how new home prices have peaked.)

But Zelman said it's even worse for builders to be stuck with tons of new homes they can't sell.

"For the near term, their philosophy is that 'it's driving our absorptions, we're gaining share at the expense of existing homes' — and they're going to keep doing it," Zelman said.

To that point, Zelman said the CEO of a major homebuilder told her last fall at a conference her firm hosted that subsidizing mortgage rates or providing other perks, like upgraded appliances, had become "a cost of doing business." Otherwise, there's a chance that home sales would wilt.

"Without those incentives, they would definitely not be seeing volume growth or even hopes of any absorption," Zelman said. "It would be a very ugly market if they hadn't been prudent in starting to accelerate buydowns in, really, the second half of '22."

After years of hardship, the future looks brighter for buyers

Buydowns are a rare silver lining for buyers and a workable stop-gap solution for builders, especially if borrowing costs don't budge anytime soon.

It's fair to wonder whether the abundance of buydowns is merely a product of this high-rate backdrop, given how they're correlated with lower operating margins for builders. When mortgage rates eventually fall, Zelman had thought builders would back away from these offers.

But after further review, Zelman now suspects that buydowns have long-term staying power.

"'We are not going to get off of it,'" Zelman said she was told by the CEO of a homebuilder in reference to buydowns. "He goes, 'Maybe the buydowns won't be as expensive if rates come down, but if anything, it gives us a competitive advantage against the existing market.'"

That stance may be a necessary one. Existing homes offer stiff competition on the pricing front, as their median sale price of $404,400 is well under the going rate of $427,000 for new units.

However, Zelman's firm expects new home prices to tick up by just 1% this year before a 2% jump in 2026, compared to increases of about 3% for existing homes. That relatively soft growth should help spark sales growth of 5%, in Zelman's view.

• Wildfires have devastated California in early 2025, and climate change may be to blame.
• Real-estate analyst Ivy Zelman warned of rising property insurance costs last summer.
• Here are five other states that homeowners could flee as climate risk rises.

Six months ago, Ivy Zelman made a bold, unpopular call, as she's done throughout her career.

The venerated real-estate analyst and founder of research firm Zelman & Associates said there was a looming threat to property values that only a few of her counterparts were talking about.

Climate change, which some have dismissed as merely a boogeyman, would become an increasingly big headache for homeowners, Zelman had told Business Insider. Her thesis was that rising global temperatures, which are correlated with natural disasters like floods and fires, would cause home insurance prices to soar over time, which would weigh on property values.

Those who agree with this thinking, like analyst David Burt of "The Big Short" fame, warned that this dynamic could cause property prices in certain markets to fall up to 60% in extreme cases.

Though they'd love to be proven wrong, Zelman and Burt seem to be onto something.

Devastating wildfires have ravaged California in January, killing dozens and displacing thousands, and scientists say climate change is partially to blame. This could go down as the costliest natural disaster in US history. And those whose homes haven't gone up in smoke may face exorbitant insurance cost increases — assuming insurers are willing to cover them at all.

In a recent interview, Zelman refused to take a victory lap but is still concerned about this trend.

"I never want to be someone to say, 'Oh, I was right,'" she told Business Insider. "I just think we all have to be realistic. How many times — it's the definition of insanity — how many times are people going to be evacuated, and then, 'Wow, we were lucky our house didn't burn down,' and they then say, 'OK, well, let's just go back home, and we're OK.'"

Zelman continued: "I think it's got to [get] some people to rethink whether they want to keep doing this."

The California exodus could continue due to high insurance prices, climate risks

California had the second-largest outbound moving rate among US states last year, according to data from Atlas Van Lines, and Zelman thinks that could only accelerate after the fire crisis.

"Bigger picture, does the state of California have more outbound migration because people are concerned about getting their home insured?" Zelman asked rhetorically.

Insurance companies are reconsidering whether homes in high-risk markets are worth insuring. If the risks of insuring a home against fires, earthquakes, and floods outweigh what they can charge, they may decide it's not profitable to stay in markets like California.

"It's very preliminary, but the insurance industry is in complete turmoil," Zelman said. "And part of that has been driven by the commissioners not allowing premiums to rise fast enough to accommodate the risk."

If insurance costs surge by thousands of dollars per year to account for climate risk, prospective homebuyers could take note and make lower offers, driving prices down over time, as Burt pointed out. And that assumes buyers are still comfortable with living in California long term.

"One gentleman friend, who we've been friends with forever, reached out and said, 'I was near the evacuation site, but I fortunately didn't have to evacuate. But I'm actually wondering, should I just sell and get the hell out of here? I'm worried about home values going down,'" Zelman said.

In the near term, Zelman said California homeowners like her friend shouldn't fret. Ironically, she said property values could surge in the next year since tons of home supply just got wiped out.

But in the coming years, Zelman suspects that buyers will gravitate toward cities that may be warm but have less risk of natural disasters, like Phoenix or Las Vegas. And those looking to get distance from Los Angeles but stay nearby could go south to Newport Beach or Orange County.

5 states that could have long-term climate risk

California isn't the only state with housing markets at risk from natural disasters that may be influenced, at least in part, by climate change.

Property values could also come under pressure in a handful of Sun Belt states, Zelman said. Elevated risks of hurricanes and uncomfortably high temperatures could eventually reduce demand for homes in the region that Zelman's colleagues had jokingly called the "Sun Melt."

Although the Sun Belt was home to some of the hottest housing markets last year, Zelman noted that existing home listings have risen rapidly in Florida and Texas, and to a lesser extent in North and South Carolina, and Tennessee. Those states each saw neutral to positive net migration flows in 2024, and new-home construction rates suggest that they're still in demand. In fact, the South is the only US region that has more inventory now than before the pandemic.

However, rising rates of homeowners looking to move could be an ominous sign. If there was a major uptick in existing listings, Zelman said it could put prices under pressure. At the very least, she thinks owners in those states should keep an eye on this trend in the coming years.

"The reason why home prices are under pressure is because there's more competition, whether it be builders opening more communities, or we have existing home sellers that are trying to move inventory," Zelman said. "I think that suggests that there is going to be more a need for people to either reduce their asking price or for builders to provide incentives."

Lower home prices may seem like a blessing for buyers who've been frozen out of what was the least affordable housing market in four decades, Zelman & Associates found.

But new buyers could get stuck with declining long-term home equity values unless the factors spooking homeowners and affecting prices, including climate-related headaches, don't go away.

"I don't anticipate that '25 is going to really be the only year that we're going to see pressure in these markets," Zelman said. "Maybe the pressure abates. But I think that it could be where I would tell a Business Insider reader, 'Well, if you buy in '25, it could go lower in '26.'"

Those looking to move may want to consider the more affordable Midwest region, Zelman said, reiterating a point that the Cleveland resident made last summer.

• Video podcasts have taken off in recent years, and Spotify has taken note.
• The audio titan has been investing in video creators, including launching new tools and incentives.
• Here's how Spotify is taking on rival YouTube in video podcasting.

Spotify is betting on video to take its podcasting business to the next level.

The Swedish audio giant has been investing in video creators over the last year with new tools and incentives. Earlier this month, Spotify launched a program to pay creators a cut of the subscription and ad revenue from their video podcasts if they meet certain requirements. Earlier, the company rebranded its podcast platform as Spotify for Creators, nodding at the approach to blend in with the creator space.

Spotify's listeners are embracing video, too. About 250 million of its 640 million users had viewed a video podcast, the company said in November. One-third of its active US-based users watch videos on the app each month.

The podcasting platform is second to video giant YouTube in the US. In an April survey conducted by Cumulus Media and Signal Hill Insights, 31% of weekly podcast consumers said they used YouTube the most for podcast listening, while 21% said Spotify and 12% selected Apple Podcasts.

Still, Spotify is embracing its rival to help its podcasts expand their reach and find the right audiences, Jordan Newman, Spotify's head of content partnerships, told Business Insider.

"This is not a zero-sum game," Newman said. "There are incremental audiences on all platforms, and even some of the same audiences are consuming in different ways. And so I think if all you're doing is focused on one platform as a creator, you are not doing it right."

Here's how Spotify's podcasting platform compares to YouTube's, from the user experience to content to the content to discovery.

The podcast service

For podcast listeners, Spotify and YouTube's streaming services are looking more similar by the day, though they still have some key differences.

Both have free and paid tiers: Spotify Premium costs $12 per month versus $14 for YouTube Premium. Each gives users access to ad-free music and downloads for offline playback. Spotify's paid service also includes 15 hours of audiobooks a month, while YouTube's counterpart lets customers play videos with their phone screen off.

From a podcaster's standpoint, Spotify and YouTube also have much in common. Both platforms give creators access to dashboards with data on who's consuming their content and for how long. Both leave ads out of video podcasts for premium subscribers, although creators can insert their own host-read ads to generate extra revenue.

One key difference is how ad revenue is distributed: YouTube dishes out 55% of revenue generated from their videos to creators, while Spotify gives podcasters a slightly smaller cut in a 50-50 split.

The content

Spotify is best known for music and podcasts, much of which are also on YouTube. The video giant, of course, also has clips for everything from gaming streams to sports highlights to tutorials on tying ties.

But when it comes to podcasts, there's increasing overlap between the two platforms.

Spotify, which in 2019 said it would pour $500 million into the podcast marketplace, has been shifting away from exclusivity to reach.

For example, the chart-topping podcast "The Joe Rogan Experience," once a Spotify exclusive, is now available across all major platforms. Many podcasters at Spotify-owned studios, including The Ringer, are also creating bonus content exclusively for YouTube or going live on the platform following the demise of Spotify's live-audio features, Spotify Greenroom and Spotify Live.

"Most sophisticated creators are multi-platform, and they're optimizing their content for the platform in which it appears," Spotify's Newman said. "You'll find our shows are not just found on Spotify; they can be found on a number of platforms."

By putting podcasts across platforms, Spotify can also maximize advertising revenue, which was roughly 472 million euros, or about $491 million, last quarter — up a modest 5.6% from the year before, according to the company's earnings report.

Content discovery and listener loyalty

YouTube and other video platforms like TikTok and Instagram may have Spotify beat when it comes to content discovery. Those platforms' algorithms are adept at showing users what they didn't even know they wanted to see.

With skill and a lot of luck, anyone could theoretically go viral on platforms like TikTok or even YouTube. It's harder for a budding podcaster who's only on Spotify to break onto the top charts since the platform's users primarily find content by searching for it directly or through playlists that feature creators who are already trending.

That's why Spotify is focusing on listener loyalty to set itself apart. The platform is positioning itself as the place to be for creators to build a sustainable following.

The company said time spent on the app has risen from 30 hours a month in 2020 to 40 hours as of late 2024.

"We are so great at retention and loyalty," Newman said.

On other platforms, Newman said, users "may really engage for a minute with their content," but after that, there's a risk for the creator that "they'll never see them again."

He said that when users watch a creator on Spotify, "it's a strong bet that they'll come back week after week after week."

• Netflix is raising prices in the US to $18 for its standard plan.
• The hikes come as the company crushed Wall Street's expectations for Q4 subscriber growth.
• These charts show why a Netflix subscription is still a pretty good deal.

Netflix hiked prices in the US on Tuesday. Even at $18 a month, data shows a subscription is a pretty good deal.

The standard Netflix plan now costs $17.99 a month, up from $15.49, while the premium plan that includes 4K video goes for $24.99, versus $22.99 before. For the first time, Netflix also increased the price of its ad-supported plan to $7.99 from $6.99.

These price hikes aren't too surprising. YouTube TV just raised prices by $10 a month, and Disney has consistently charged more for its streaming services. Disney+ now charges nearly $16 for its basic plan — more than double what it did when it launched in late 2019.

Netflix last raised prices in the US in October 2023.

Still, Netflix is by far the cheapest service on a per-hour-of-consumption basis, according to a recent note from UBS media analyst John Hodulik.

Before Tuesday's increase, customers on Netflix's ad-free plan paid $0.33 per month per hour they watched, according to Nielsen and company data analyzed by UBS. That suggests the average customer is watching the service for a staggering 47 to 70 hours a month.

That's cheaper on a per-hour basis than Netflix's major streaming rivals and traditional TV, UBS found.

Those on Netflix's ad plan are also getting a steal. UBS found that they're paying $0.15 per hour they watch, and the data suggests they're watching just as much as those on the ad-free plan.

The streaming giant also has an industry-leading churn rate: 1.8% of its customers canceled last quarter, according to streaming data firm Antenna. This is a sign that subscribers largely think they're getting their money's worth.

The price hikes come as Netflix invests in more live programming, including NFL games, which have drawn large streaming audiences.

The company added nearly 19 million subscribers in the fourth quarter of 2024, shattering Wall Street's estimates for the period. Netflix generated $1.8 billion in net income during the quarter and said it expects to rake in close to $2.5 billion in Q1.

• Last year was the toughest for entry-level home affordability in four decades.
• Prospective buyers have reasons to be hopeful, but mortgage rates aren't among them.
• Here's what top real-estate analyst Ivy Zelman thinks will happen in 2025.

The US real-estate market is bound to have a better year in 2025 after a historically horrible stretch for housing affordability, but those looking for major improvements may be disappointed.

Entry-level home affordability reached a 40-year low last year, according to data compiled by Zelman & Associates, the real-estate research firm led by famed analyst Ivy Zelman.

Would-be homebuyers were battered by exorbitant property prices and mortgage rates. Although both aspects of affordability improved modestly from peak levels, it wasn't enough to give home sales a meaningful jumpstart.

Younger generations who didn't already own property had it toughest. First-time homebuyers made up less than a quarter of purchases, Realtor.com found — the lowest rate since 1981. Housing analysts are likely sick of references to the 1980s, which was one of the toughest times on record for home affordability.

The new year often brings optimism, and 2025 is no different for those hoping to buy a house.

But it may be best to stay patient, based on year-ahead projections from Zelman and her team. Their estimates for mortgage rates, home sales, prices, and supply in a January report indicate that the year ahead will be better in many ways than 2024, though still full of headaches.

Heeding Zelman's calls has historically paid off. Nearly 20 years ago, Zelman was famously skeptical about the housing market. Shortly after came the housing bubble and financial crisis. She also warned of higher home insurance costs this summer due to rising global temperatures, before the devastating California fires that some observers say are climate change-related.

Below are eight charts from Zelman's report showing what's next for US real estate, which includes the housing and rental markets.

• One of the hardest years ever for hopeful homebuyers is officially in the books.
• Property sales were weighed down once again by restrictive mortgage rates.
• Here's why millennials and Gen Zers made the right call by not buying, and what will change in 2025.

Young would-be homebuyers largely put off their purchases last year, and for good reason.

Lofty prices and elevated mortgage rates made 2024 an unusually tough year for all buyers, but they were especially formidable obstacles for those who weren't already homeowners.

First-time buyers only accounted for 24% of US home purchases last year, a new report from Realtor.com found. That's the lowest rate since at least 1981, researchers noted on January 9, even though home affordability has improved significantly from its late-2023 lows.

Millions of millennials and Gen Zers hoping to buy homes and were shut out last year weren't alone.

Housing market transactions underwhelmed for a third straight year during a stalemate between aspiring buyers and sellers. Home prices drifted down in late 2024, but not enough for some buyers to feel like they were getting good value, given where mortgage rates were. And owners held out for renewed price growth since they didn't want to sell for less than their neighbors did.

"Prices have been so sticky; they just stay where they are," said Joel Berner, an economic researcher at Realtor.com who co-authored the report with Danielle Hale, in a recent interview. "People have seen the house down the street a couple of years ago sold for $700,000. Why would I list mine for $600,000?"

Some housing market analysts think property prices will get a second wind, likely starting in the busier spring and summer months. Realtor.com's official forecast is for 3.7% price growth, though that's way slower than a few years ago. And in some markets, prices could keep falling.

"It takes time for people to adjust to the new normal, and so prices are finally starting to drop," Berner said.

Why not buying a home paid off last year

Although buying a house and building equity is a worthy aim, many young Americans may end up glad that they waited to sign on the dotted line.

Mortgage rates remained a major headache last year, even though they were below their peak. The Federal Reserve's plan to cut interest rates more slowly may keep many iced out of the market, though the consensus among real-estate observers is that borrowing costs will still fall.

In the meantime, those who've opted for apartments likely aren't breaking the bank. Rent growth has stagnated as inflation remained below 3%, and Realtor.com's research shows that rent has fallen for the last 16 months. Whether rent was flat or down, there was little rush to buy.

"Rents have been so soft in the last year that people look around and they say, 'Why would I pay a $3,000 mortgage payment when I can rent the same place for $1,500?'" Berner said.

It makes sense that young renters were reluctant to swap their reasonably priced leases for exorbitant mortgages, especially if there weren't many attractive options available. Home inventory has long been limited and is only now returning to pre-pandemic levels.

Steadily rising home supply is one of the healthiest signs possible for the housing market. While Berner said this isn't a buyer's market quite yet, improved inventory could send it that way.

Opportunities abound for young buyers

While millions are looking for homes, Hale and Berner focused their report on younger buyers, specifically those born in the 1990s who were between the ages of 25 and 34 last year.

Those younger millennials and older Gen Zers may want to start their search on the East Coast, which is home to most of the 10 best cities for first-time buyers, according to Realtor.com.

Their methodology is based on factors like home prices, the local economy, and price growth history. The typical home in each of these markets is below the US median of $416,880 and is also considered affordable, meaning monthly payments are less than 30% of a buyer's income.

Three of these top markets for 25- to 34-year-olds are in Florida, two are in Western New York, and three others are in the Mid-Atlantic region. Only one city cited by Realtor.com was west of the Mississippi River: North Little Rock, Arkansas.

"These larger, Eastern, older communities have a lot of things to offer," Berner said of the list. "They're well established; there's a lot of infrastructure, a lot of restaurants, a lot of daycares, etc. And the listing prices are pretty soft out there. So it's just kind of a good mix."

What's even more fascinating is which markets didn't make the list. So-called "Zoomtowns" that were trendy during the pandemic were absent, as were highly popular cities in Sun Belt states like North Carolina, Tennessee, and Kentucky. Cities in California didn't come closer either.

Some of the hottest markets in recent years ranked well in previous renditions of this report, Berner said. If history repeats, young buyers who settle down in cities on this year's list will be glad they did since they'll see price appreciation in the years to come. And they also might be grateful that they didn't get suckered into a subpar deal last year.

"People saw the previous ones and they said, 'These are really good places to buy,' went and bought, and then those listing prices were up," Berner said. "We're kind of chasing our tail a little bit with things, trying to stay ahead of the market. And so it wouldn't surprise me next year if the list looks a whole lot different."

• Disney and pay-TV provider Fubo just reached a deal that will shake up sports TV.
• There will be new ways to watch sports in 2025, including new services from ESPN.
• Media analysts shared what the new deal means for sports fans, including cord-cutters.

Disney's fear of not getting sports streaming right is making the whole marketplace confusing for viewers.

A newly announced deal between Disney and Fubo will give sports fans more streaming choices in 2025.

The Mouse House is combining its Hulu + Live TV service with pay-TV streamer Fubo's business. The deal paves the way for a new sports streamer, Venu, to debut in the coming months, featuring sports content from ESPN, Warner Bros. Discovery, and Fox. (Venu's launch had been blocked by a ruling in a lawsuit started by Fubo.)

Disney's ESPN is also set to launch a flagship streaming platform this fall with content from all its networks. The sports broadcaster has a smaller service as well, ESPN+, with niche sports, some of which are now available for no extra charge on Disney+.

Sports fans are now inundated with ways to watch their favorite teams. Most games are on cable or internet-based substitutes like Hulu + Live TV, Fubo, and YouTube TV, which has had a slew of price hikes but is often still cheaper than most pay-TV packages.

But some matches are exclusively streaming on Amazon Prime Video, Peacock, or Netflix, or are simulcast on apps like Paramount+ and Max. Then there are regional sports networks, which have their own streaming apps in some markets.

And that's all before Venu and stand-alone ESPN enter the market.

In theory, fans should be thrilled. Each customer will be able to almost endlessly customize and control what they pay for, instead of being stuck with the one-size-fits-all approach of the past.

But all these options could confuse casual fans.

Is paralysis by analysis a problem?

Disney is throwing everything at the wall to make sure sports broadcaster ESPN survives the shift to streaming. Sports still drive massive ratings and subscriber growth.

"Why does Disney want to add another streaming platform to its already long and growing list of consumer streaming offerings?" wrote MoffettNathanson's Robert Fishman and Michael Nathanson in a recent note. They said this deal, which keeps Fubo and Hulu + Live as separate services, "only further confuses the long-term streaming strategy for Disney investors."

It's not just investors who have to sift through Disney's streaming menu. Sports fans may struggle to discern what content is available on which service.

One simple reason Disney is giving sports fans a bevy of options across price points is that it doesn't know exactly what they'll want.

It's unclear if this fast-changing media market can support ESPN's flagship streamer and Venu, in addition to other pay-TV services — as Business Insider's Peter Kafka wrote. Consolidation may be inevitable.

But while ESPN hopes its stand-alone flagship service breaks through, it doesn't necessarily matter how the company reaches customers in the late 2020s and 2030s, provided it still gets paid.

Macquarie's Tim Nollen told BI that Disney's multi-pronged approach is the right one.

"Disney is giving itself a much better chance to succeed," Nollen said. "It's smart to provide yourself with the most options you can."

Consumers can win, despite confusion

Analysts generally said Disney and Fubo's deal is a win-win for the companies and for consumers.

Venu is entering the market at a price tag of $43 a month, far cheaper than competing pay-TV offerings.

The Disney-Fubo tie-up could eventually lead to higher prices, as consolidation often does, said Adam Rhodes, a distressed debt analyst at credit-intelligence firm Octus, echoing a concern in the ruling against Venu.

However, others said Fubo was already weak and could have folded if it stayed on its own.

"Technically, having one fewer player probably makes it less competitive," Brian Wieser, who writes the Madison and Wall newsletter, told BI of the Disney-Fubo deal. "On the other hand, you could argue that maybe Fubo isn't in the best position as a smaller player, given the cost of content."

Now, Fubo could unveil its own skinny sports bundle, similar to Venu's, which would be a win for consumers.

"They were kind of an also-ran in the marketplace," Corey Martin, the chair of law firm Granderson Des Rochers' Entertainment Finance Practice, said of Fubo. "They're actually better capitalized, and better positioned to execute on its strategy."

No matter how the sports streaming market shakes out, consumers can't say they lack choices.

• A sizable uptick in home inventory has brought down prices, giving buyers leverage.
• Fierce bidding wars that were common during the pandemic may be over for now.
• Here are 14 top US cities for buyers as 2025 begins, according to Realtor.com.

A slow year in the US housing market ended on a high note for buyers, and they might have even more luck landing new homes in the new year.

Property prices slid again in December in a less competitive market with steadily rising supply, according to Realtor.com's final housing market report for 2024, which was released in early January.

Median single-family home prices were 1.8% lower last month than the year prior at a going rate of $402,502, the firm found. The median price per square foot did rise by 1.3% year-over-year, though researchers said that was largely because buyers targeted smaller, cheaper houses.

Those declines stem from a long-awaited surge in home supply. Property listings were up for the 14th month and by 22% over last December. The number of unsold houses, including those under contract, also jumped for the 12th consecutive month and by 17.5% from 2023.

Supply has risen, but not everything is rosy

But while buyers got the lower prices they'd hoped for, many still didn't sign on the bottom line.

December was the quietest month on the housing front in nearly two years. The typical home was on sale for 70 days, compared to 62 days in November and 61 days in late 2023.

The slump coincided with a recent surge in mortgage rates, which just reached levels not seen since July. Higher borrowing costs are a major barrier for many buyers, and they've also deterred would-be sellers who are reluctant to trade in inexpensive mortgages for costlier ones. And when lofty mortgage rates cap what buyers can spend, sellers are stuck with weaker offers.

"With higher rates taking a bite out of homebuying power, fewer new sellers are coming to the market this winter compared with this past fall," Realtor.com's Ralph McLaughlin wrote in the January 2 report.

That's not to say there's a sales drought, as pending listings were 7.4% higher last month than a year earlier. Still, homes under contract had risen 14.7% in November before the latest spike in mortgage rates, which suggests that losses in home affordability are hurting the market.

While rates are a headwind, Realtor.com's economists are still calling for sales growth this year. However, the firm's forecast is for 1.5% growth, which is far less than optimists have predicted.

"Though rates are significantly higher today than they were just a few months ago, our 2025 forecast shows that as both lower rates and time chisel away at the 'lock-in' effect that has held back sales this year, we should expect home sales to rise modestly by 1.5% in 2025," McLaughlin wrote.

14 cities that favor buyers

Those who made buying a house a New Year's resolution might not have as much trouble as they would have a year or two ago, though they'll still need to look in the right places.

Home inventory increased last month across all four US regions and in all but one of the nation's 50 largest metropolitan areas, but there were still massive discrepancies. For example, the South and West saw supply rise by roughly 25% versus about 7% in the Northeast.

Since buyers have more options, there isn't as much pressure on them to bite on deals. In turn, homes were for sale for longer in 92% of major markets last month. That stalemate drove 12.9% of sellers to cut their asking prices, which was slightly higher than the 12.7% in December 2023.

To help buyers secure deals, Business Insider reviewed Realtor.com's latest housing data and found 14 large US metro areas that had lower prices and listing growth of at least 10%. Below are those cities and their median listing price, price growth on an overall and per-square-foot basis, active listing growth, share of homes with reduced prices, and the growth in that metric.

• Real-estate tech startups aim to make tasks from property management to homebuying more efficient.
• We surveyed 10 venture capitalists to identify the hottest proptech companies of the year.
• Some of the firms are modernizing real estate by digitizing analog processes, sometimes using AI.

The frozen housing market meant tough times for the proptech — or property technology — industry.

As the market starts to thaw, however, things are looking up for firms that seek to use technology to digitize, automate, or otherwise improve legacy processes in the worlds of residential and commercial real estate.

Business Insider asked 10 venture-capital investors who focus on real-estate and construction technology to nominate the most exciting, promising, and talked-about proptech startups in 2024.

The 20 companies on the final list reveal the breadth of the proptech universe.

Take Steadily, a firm trying to digitize insurance underwriting for real-estate investors, a process that has historically taken a lot of paperwork and time — only to result in policies with steep premiums. Another startup, Arcol, aims to make producing 3D architectural drawings faster and easier. A third, Conservation Labs, uses an AI-powered sensor to detect if water is leaking or being wasted in a building to prevent damage and protect the environment.

In the first half of 2024, venture funding for proptech companies dropped 14.3% from the same period a year prior. Funding totaled $4.37 billion, down from $5.1 billion during the same period in 2023 and dramatically less than the $13.13 billion invested in the first six months of 2022, according to the Center for Real Estate Technology & Innovation (CRETI), which surveyed 1,088 proptech startups.

Certain niches, however, hold promise. In 2024, VC investments in AI-powered proptech companies reached a record $3.2 billion, CRETI reported earlier this month.

Here are 20 of the buzziest proptech companies in 2024, presented alphabetically. The companies' fundraising numbers are from PitchBook to ensure a consistent data source.

Did we miss a company you think is disrupting the industry? Send reporter Jordan Pandy an email at [email protected].

• An analysis says streaming services' Christmas-movie supply has surged, with growth peaking in 2020.
• It suggests holiday movies are a big revenue generator for streaming services.
• Demand typically begins in November and plummets after Christmas Day.

Streaming viewers' appetites for Christmas movies — from time-tested classics like "Love Actually" to fresher fare like Netflix's "Hot Frosty" — have grown massively over the years, and services are cashing in on the trend, a new analysis suggests.

It's a buzzy genre, accounting for a healthy chunk of overall ad revenue at Hallmark, which even operates a Christmas cruise.

Netflix, for its part, is becoming a formidable rival, releasing six holiday originals this year alone. It's amassed something of a Christmas cinematic universe with interconnected references in many of its projects.

An analysis by the data firm Parrot Analytics found that the supply of Christmas movies on streaming services, including classics and new films, grew sixfold from 2000 to 2023.

The firm found that growth peaked in 2020 at the height of the pandemic as viewers sought comfort. It looked at content on Amazon Prime, Apple TV+, Discovery+, Disney+, Max, Hulu, Netflix, Paramount+, Peacock, and Starz.

After 2020, the growth of new Christmas movies slowed. Still, the holiday-movie genre — including films centered on Thanksgiving, Christmas, and New Year's — has become increasingly lucrative.

Parrot Analytics estimated that streamers generated $132 million from holiday movies in the fourth quarter of 2023. In the same quarter of 2021 that figure was $90 million, rising to $121 million in the fourth quarter of 2022.

Expectedly, Christmas-movie demand begins in November and peaks on Christmas Day, after which viewership plummets. Parrot said that while the peak increased steadily after 2019, growth appears to have slowed somewhat in 2024.

Citing data from November 1 to December 14, Parrot said that this year the most popular Christmas movie across platforms was Amazon's "Red One," starring Dwayne Johnson. It said that demand for the action flick was more than 50 times that of the average movie, based on metrics like consumption data, consumer research, and social-media interest.

The next most in-demand movies were the first two "Home Alone" films, followed by "The Grinch" and "How the Grinch Stole Christmas." David Harbour's "Violent Night" was sandwiched between two classics: "The Polar Express" and "It's a Wonderful Life."

Perhaps surprisingly, Netflix's "Hot Frosty" was well down the list, in 19th place, despite seeming to stir up interest, suggesting it's not quite a Christmas classic yet.

• US home sales remained low due to high mortgage rates and home prices in 2024.
• Southeast cities like Charlotte and Knoxville saw high demand despite affordability issues.
• Analysts predict a potential rise in home sales in 2025, driven by lower mortgage rates.

Another tough year in the US housing market was anything but boring for those in popular cities.

Home sales were soft for a third straight year, the National Association of Realtors recently noted. Mortgage rates and home prices are down from peak levels, but affordability remains a major issue and has sidelined millions of would-be buyers, who are instead renting.

But sellers in hot markets still won big as buyers battled for scarce spots in coveted cities.

10 places movers flocked to in 2024

To determine this year's most popular US real-estate markets, Business Insider compiled and analyzed data from six sources about moving patterns, rents, rental market competitiveness, search interest from homebuyers, and home price growth history and projections.

Although there were some mixed signals, there were also some clear conclusions about which regions, states, and cities drew the most interest from buyers and renters.

A brief look at migration data from Atlas Van Lines may yield more questions than answers. The moving firm found that the places with the most inbound movers relative to those leaving were Arkansas; Rhode Island; North Carolina; Washington, DC; and Idaho. Also on the list of states with inbound rates of at least 55% are Maine, Connecticut, Washington, Alaska, Alabama, and New Mexico, which essentially covers all four corners of the US.

But while that moving data gives a solid big-picture overview, it doesn't provide insight into which individual markets were most popular. That was instead determined by other measures of demand, like how much prices for homes and apartments rose, or how tough they were to land.

This process was more of an art than a science, but the 10 cities that best fit those criteria within states with substantial positive inflows of movers were all east of the Mississippi River. Even more notable is that the Southeast region was home to eight of those 10 popular markets, which were spread across just three states: North Carolina, Kentucky, and Tennessee.

North Carolina was tied for second in the nation in mover inbound rate at 63%, due in part to four especially hot markets. Winston-Salem and nearby Greensboro saw their rents rise 6.7% and 5.3% this year, respectively, giving their rental market competitiveness scores a big boost. Meanwhile, two other major cities in the Tar Heel State — Charlotte and Durham — saw rents decline but were among the 20 most searched markets by homebuyers.

Those four North Carolina cities are set for high-single-digit or low-double-digit home price growth next year, per Realtor.com, and the NAR highlighted Charlotte as a top spot in 2025.

Neighboring Tennessee also had one of the nation's highest inbound rates at 62%. Knoxville was one of the more competitive smaller markets despite rent growth of just 1.5%, and it ranked 10th in the nation in homebuyers' searches. It's also on the NAR's list of standout markets next year. Meanwhile, Memphis saw 22.7% rent growth and is in line for 10.5% home price growth.

Kentucky's inbound rate of 56% was more modest. However, it had Lexington with 9.9% rent growth, a lofty rental market competitiveness score, and the eighth spot in buyers' searches, as well as Louisville, which Rent Cafe said was the top trending rental market of 2024.

Jonathan Miller, the cofounder of the real-estate firm Miller Samuel, told Business Insider that the Southeast market is popular because it's relatively warm and has ample housing inventory.

"It's a combination of the weather and housing affordability," Miller said in a recent interview.

The nation's capital represented the bordering Mid-Atlantic with a 63% mover inbound rate and a fifth-place ranking in homebuyers' searches, pushing prices up 10.2%. Washington, DC, was also one of the 30 most competitive rental markets, though supply kept price growth in check.

Rounding out the list was New Haven, Connecticut, which was arguably the hottest market. It was the fourth most competitive rental market this year, and its rent growth was easily the highest in the US in December at 35.7%. It also had 18.3% home price growth in November and is set for another 9.7% next year due to its Yale University ties and proximity to New York City.

What to expect in 2025

The US housing market has slowly thawed after it froze over as mortgage rates spiked. Some real-estate analysts expect sales to heat up in 2025, though others are more skeptical.

Optimists are calling for the biggest jump since the pandemic boom. The National Association of Realtors sees home sales rising 7% to 12% in 2025, including an 11% jump for new units, while eXp Realty's CEO is calling for 10% growth caused by sliding mortgage rates and rising supply.

But Realtor.com's sales forecast is more tempered at 1.5%, as is Miller's call for a 3% increase. The veteran real-estate analyst said mortgage rates will likely stay above 6%, weighing on demand, plus supply is also limited. Even still, he's expecting a 4% to 5% jump in home prices.

"If mortgage rates unexpectedly fall below 6%, we can have a housing boom," Miller said. "It just doesn't appear that that's in the cards, but there's a lot of upside potential in transaction volume, despite higher mortgage rates."

Miller said that against that backdrop, buyers will continue to seek out affordable markets, which are often correlated with abundant inventory. That's why the Sun Belt region was so hot in 2024.

This year's most popular markets will likely be among the winners next year, in Miller's view. He didn't predict the next boom town but said surges into Texas and Florida have run their course. Those states were red-hot in the early 2020s, though each had level moving flows this year.

"It's not that those markets are less attractive," Miller said. "There's less intensity from inbound migration as millions of new residents get situated. The rate of growth is no longer surging."

However, it appears as if the exodus from large states with highly populated cities isn't over, as three of the five states with the most outbound movers were California, Illinois, and New York. Each of those states has relatively high taxes, and Miller has a hunch that some movers might try to preemptively move before the potential expiration of state and local tax deductions slated for the end of 2025.

• The US housing market might be much more friendly to homebuyers in 2025.
• Home sales should rise significantly as inventory grows and prices inch higher.
• Here are 10 real-estate markets that could see a surge of activity next year.

Homebuyers should stock up on champagne — and not just for New Year's Eve.

Next year may present long-awaited opportunities for aspiring property owners to trade their apartments for homes, or for families to get the upgrades they've been pining for. There's a growing sense among real-estate analysts that an extended home sales contraction will snap in 2025 as housing inventory rises and mortgage rates fall.

"Homebuyers will have more success next year," said Lawrence Yun, the chief economist at the National Association of Realtors, in a statement about the firm's 2025 outlook. "The worst of the affordability challenges are over as more inventory, stable mortgage rates, and continued job and income growth pave the way for more Americans to achieve homeownership."

Housing market transactions will soar 7% to 12% in the year ahead to 4.5 million units before an even larger 10% to 15% jump in 2026, according to the NAR. New home sales are expected to climb 11% next year and 8% the year after.

Earlier this month, real-estate brokerage titan eXp Realty's CEO told Business Insider that sales could advance 10% in 2025, though Realtor.com called for a comparatively modest 1.5% gain.

Home sales have tanked in the years after the post-pandemic boom, so those upbeat calls may sound like wishful thinking, especially coming from realtor trade associations and brokerages.

But a home sales boom seems plausible, based on what should be healthy supply and demand.

Property supply has risen significantly in recent months from startlingly low levels, and housing starts are also in a long-term uptrend following a post-housing-bubble construction bust.

That inventory uptick will keep property price growth in check at only 2% in each of the next two years, the NAR predicted, which would translate to a median existing-home price of $410,700. And buyers may also move off the sidelines as mortgage rates drift toward 6% from around 7%, the firm added.

"If rates stabilize around 6%, about 6.2 million households can once again be able to afford median-priced homes, compared to the current constraints with rates near 7%," the NAR noted.

Slower home-price growth and lower mortgage rates will go a long way toward easing the affordability crisis that has plagued the US since the pandemic. Just over a year ago, buyers suffered through the least affordable quarter since 1985. That may soon be a distant memory.

10 hot real-estate markets

Home sales should surge across the US next year, especially in a healthy economy with solid job gains. However, researchers at the NAR expect certain cities to be far busier than others.

Buyers will flock to 10 top housing markets in 2025 due to a combination of rising home supply, manageable mortgage rates, and healthy local economies, the firm said. Healthy demand should underpin further home-price appreciation for owners in those metropolitan areas.

These soon-to-be-hot markets share several similarities, including strong property price growth since the pandemic, a sizable supply of starter homes, positive net migration, and an outsized share of out-of-state movers who are buying homes. Other factors were a market's job growth, mortgage rates, how long most homeowners had been there, and the share of millennial renters who could buy. The NAR outlined its full methodology for this exercise in a press release.

Below are the 10 real-estate markets that the NAR is bullish on next year, along with select economic and demographic considerations.

Along with each metro area is its home price growth in the last five years, starter homes as a share of total inventory, the share of homeowners who've been in place for more than 16 years and therefore may be ready to sell, net migration ratio, the share of out-of-state movers purchasing homes, job growth since late 2019, and commentary from the NAR.