Redfin Corp Stock Price, News & Analysis

Redfin (RDFN) reports that U.S. median asking rents dropped 1% year-over-year to $1,625 in April 2025, marking the largest decline since February 2024. This price is $80 below the August 2022 record high of $1,705. The decline is primarily attributed to elevated apartment supply outpacing renter demand.

Austin, TX experienced the steepest decline among major markets, with rents falling 9.6% to $1,399, followed by Minneapolis (-7.3%) and Portland (-5.3%). Conversely, Cincinnati led rent increases at 8.7%. The rental vacancy rate for larger buildings reached 8.2% in Q1 2025, with less than half of new apartments being rented within three months. Two-bedroom apartments saw the largest decline at -1.5%, while 0-1 bedrooms fell 1.2% and 3+ bedrooms decreased 1%.

[ "Rental market shows stability with 14 straight months of modest changes (±1% or less)", "Monthly asking rents rose 1.2% in April, showing typical seasonal patterns", "Strong renter demand continues despite supply increases" ]

A new Redfin report reveals that the median age of homes purchased in the U.S. reached 36 years in 2024, up significantly from 27 years in 2012. This aging trend affects all housing types, with condos showing the most dramatic increase from 26 to 38 years. The shift is primarily driven by two factors: insufficient new construction and affordability concerns. Less than 10% of U.S. homes were built in the 2010s, marking the lowest construction rate since the 1940s. The price gap between newer and older homes has narrowed, with newer homes commanding a 31.6% premium in 2024, down from 77.9% in 2012. Regional variations are stark: Buffalo, NY has the oldest median home age at 69 years, while Provo, UT has the youngest at just 6 years. The trend reflects a broader housing market challenge, with older homes presenting additional maintenance and efficiency concerns for buyers.

U.S. homebuyers secured 86,604 mortgages for second homes in 2024, marking the lowest level since 2018 and a 5% decrease from 2023, according to Redfin's analysis. Second-home mortgages represented just 2.6% of all mortgages in 2024, down from 2.8% in 2023 and a peak of 5% in 2020. The median value for second homes was $495,000, significantly higher than the $385,000 for primary homes. Florida markets experienced the steepest declines, with Miami leading at a 32.2% drop. The typical vacation home buyer profile was high-income (86.4% of buyers), Gen X (58.6% aged 45-64), and predominantly white (79.7%). Key factors driving the decline include high mortgage rates, increased loan fees, soaring insurance costs, and a cooling rental market.

The U.S. housing market is experiencing headwinds as the median monthly housing payment reached an all-time high of $2,868 during the four weeks ending May 4, 2025. This record cost is driven by a 1.8% year-over-year increase in home sale prices and elevated mortgage rates averaging 6.76%.

The market shows mixed signals with new listings up 5.5% year-over-year and total inventory rising 13.6%, while pending sales declined 3.9%. Mortgage-purchase applications are down 6% month-over-month, though home tours are increasing faster than last year. The market is particularly challenging for sellers, with agents advising fair initial pricing to attract buyers and avoid subsequent price reductions.

Washington D.C.'s housing market is experiencing unprecedented changes as active listings surged 25.1% year-over-year to the highest level since 2022, marking the largest gain on record. This surge is primarily attributed to federal workforce layoffs under the Trump Administration, with at least 121,000 federal workers affected. The median home sale price in D.C. rose 4.1% to $600,964, outpacing the national increase of 1.9%. Suburban areas are particularly impacted, with Alexandria, VA seeing a 40.9% increase in active listings, followed by Montgomery County, MD (38.5%) and Loudoun County, VA (36.8%). Despite the inventory surge, D.C.'s market remains relatively strong with homes selling faster than the national average at 26 days on market and 44.1% of homes selling above list price.

A new Redfin report reveals that sending two children to daycare costs more than rent in 14 of 20 major U.S. metro areas analyzed. In Denver and Seattle, families with one child pay nearly as much for daycare as rent, while those with two children spend significantly more. Denver leads with daycare costs at 83% of typical rent ($1,720) for one child and 167% for two children. Seattle follows with daycare costs at 80% of rent ($2,065) for one child and 160% for two. San Francisco has the nation's highest childcare costs, followed by Seattle, Boston, and Denver. Childcare costs are rising in 17 of 20 metros, with Seattle seeing the largest increase (10.4%). The combined burden of rent and childcare costs consumes about half of median household income in cities like Philadelphia, highlighting the significant financial strain on American families.

Redfin (NASDAQ: RDFN) reported mixed Q1 2025 results amid its pending acquisition by Rocket Companies. Revenue decreased 2% year-over-year to $221.0 million, while net loss widened to $92.5 million ($0.73 per share) from $66.8 million ($0.57 per share) in Q1 2024. The company's market share slightly declined to 0.75% of U.S. existing home sales.

Notable highlights include a 32% increase in lead agents to 2,190, a record 29% mortgage cross-selling attach rate, and 40% of sales from loyalty customers. Monthly average visitors decreased to 46 million from 49 million year-over-year. The company also announced a partnership with Zillow for exclusive multifamily rental listings.

According to a new Redfin report, U.S. multifamily housing construction permits have dropped significantly, with developers obtaining permits for 12.4 units per 10,000 people over the past year. This represents a 27.1% decline from the pandemic building boom (17 units) and a 5.5% decrease from pre-pandemic levels (13.1 units).

Despite overall declines, Austin leads major metros with 64.5 units per 10,000 people, followed by other Sun Belt cities: Cape Coral (59.6), North Port (53.3), Raleigh (41.1), and Orlando (40.7). Conversely, Stockton recorded zero new permits, marking the lowest among analyzed metros.

The slowdown is attributed to flattening rents and high borrowing costs, with 63% of major metros showing declining permit numbers since the pandemic. Notable decreases include Stockton (-100%), Colorado Springs (-82%), and Boise City (-64%).

The 2025 spring homebuying season is showing weakness as record-high housing costs and economic uncertainty keep potential buyers hesitant. The median U.S. monthly housing payment has reached an all-time high of $2,870, while mortgage-purchase applications have declined 6% month-over-month. Pending home sales dropped 2.8% year-over-year nationwide during the four weeks ending April 27. The market is seeing increased activity from sellers, with new listings up 6.1% year-over-year and total homes for sale up 13.7%. The median sale price stands at $388,475, up 2% year-over-year, while the median asking price is $429,700, up 6.1%. Market conditions indicate a shift, with only 27.1% of homes selling above list price, down from 31% the previous year.