Our Prediction for the 2026 Crestview, Florida Rental Market
The Crestview rental market has gone through several years of adjustment and 2026 looks to continue that same trajectory. Our team at Kuntz Property Group has been closely tracking rent levels, vacancy rates, renewal rates, market demand, and housing supply. As we head into 2026, we believe that rents will remain stagnant or continue to decline. We also anticipate that renewal rates will rise as residents increasingly choose to stay put, and we expect that rental supply will remain high while demand remains moderate to low. Below is our full analysis of what Crestview landlords can expect.
Prices Will Continue to Trend Downward
While it may seem surprising, the data supports a continued decline in rental pricing across Crestview. Based on our observations and tracking across 2025, rents have been decreasing approximately four to five percent annually. This decrease is likely to continue into 2026 due to the imbalance between supply and demand.
There are several reasons this trend is persisting:
A growing number of available rentals in Crestview competing for the same pool of tenants.
Reduced movement among tenants, meaning fewer people looking for new rentals.
A slight shift toward homeownership due to marginally lower interest rates.
This combination places pressure on landlords to remain competitively priced, and in some cases, adjust their rental rates lower to attract interest.
This is not a crash or collapse. It is a market normalization that began in 2023 and continued throughout 2024 and 2025. Crestview is unique because its rental market expanded quickly, and now it is correcting to align with realistic demand. Our prediction for 2026 is that this correction continues, not levels out.
Why Renewals Will Become Even More Valuable
One of the strongest themes entering 2026 is that renewal rates will rise. Tenants are choosing to stay in their current homes longer. Moving is expensive, inconvenient, and uncertain, especially as overall household budgets tighten.
The most interesting finding we uncovered while analyzing renewal data in 2025 is that renewed rents are higher right now than market rents for vacant homes. In other words, landlords who retain good residents on renewal can actually achieve higher rental income than those who put their homes back on the market.
Renewals carry several advantages for landlords:
Reduced vacancy time.
No turnover repairs or cleaning.
No new marketing or leasing expenses.
Lower risk of unknown tenant behavior.
In a market where rent growth is weak, renewals become a powerful stabilizer. For 2026, we believe the most strategic landlords will prioritize renewal strategies and offer good resident service to encourage tenants to stay.
High Supply and Lower Demand Will Continue
As of December 2025, there were 118 active rental listings in Crestview alone. That number is unusually high given the size of the community. Supply is simply outpacing demand, and this imbalance is one of the primary drivers of reduced pricing.
We do not see this trend reversing quickly. Demand is expected to remain lower for three reasons:
Fewer people moving than in previous years.
More renters converting to ownership due to interest rate changes.
Increased competition among rental owners for the same set of tenants.
The rental market is no longer operating with scarcity. It is operating with abundance, and that means landlords will need to be more strategic to avoid extended vacancies.
The Housing Sales Market Will Pull Some Renters Away
While interest rates did not drop dramatically in 2025, they did move down modestly. This slight drop appears to have been just enough to motivate some renters to purchase rather than renew or move into a new rental. Even if rates remain relatively flat entering 2026, we anticipate continued migration from renters to buyers.
More people buying means fewer people entering the rental pool. This is especially impactful for Crestview because many of our renters are military families, young professionals, and working-class households. If even a modest portion of those households becomes more confident in homeownership, the number of remaining rental prospects shrinks.
Preparing for 2026 as a Landlord
We believe the landlords who do best in 2026 will approach the year with strategy, not assumptions. Pricing will matter. Tenant retention will matter. Presentation and customer service will matter. Some of the most important steps you can take include:
Conducting realistic rent evaluations. Pricing too high will lead to prolonged vacancy.
Budgeting for longer leasing times if the home becomes vacant.
Prioritizing renewals as the number one financial protection.
Conducting preventative maintenance so residents feel comfortable staying.
Keeping rental marketing professional and consistent to stand out from the competition.
Landlords who approach 2026 proactively rather than reactively will outperform the market average.
Final Outlook for 2026
Here is our summary forecast for the Crestview rental market in 2026:
Pricing: Likely to remain flat or decline another four to five percent.
Tenant Movement: Expected to slow further as renewal increases.
Renewal Value: Higher rent retention through renewals compared to setting a home back on the market.
Supply: Likely to remain high due to continued listing volume.
Demand: Moderate to low, especially as the housing sales market strengthens.
Strategy: Renew, retain, and price realistically to avoid vacancy.
The market will reward preparation and effective management. The days of automatic rent increases are behind us for now, but the upside is that landlords who navigate this period well will be positioned exceptionally for the eventual market swing back toward equilibrium.
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