Welcome to 2025! As we shake off the holidays and put 2024 in the rearview mirror, let's look ahead to 2025.

2024 was the jumpstart into strategic conversations about AI in rental housing. Our team at The Strategic Edge started the year with 2-3 meetings per month on AI, we finished the year fielding 30-50 calls per month by December. The top three questions on everyone's mind in 2024:
❓ Is AI worth the investment - and where can it deliver real results?
❓ Will AI replace human expertise - or enhance it?
❓ Who is actually pursuing AI - and what are they doing with it?

In contrast, 2025 will be the year for action as organizations begin to unlock the value propositions for AI. Innovation in artificial intelligence (AI) use cases shows no sign of slowing down, and the early adopters across rental housing are primed for a new wave of adoption and impact.

Here are seven key predictions for AI in 2025, with a focus on what they mean for housing professionals and businesses looking to lead the way:

1. Generative AI Moves from Isolated Tasks to Operational Necessity

In 2025, generative AI will shift from being a “nice-to-have” tool to perform lightweight tasks and into an operational necessity. Organizations will integrate GenAI and automations into workflows, leveraging it for everything from automating communications to drafting compliance reports and crafting proposals.

What This Means:
Rental housing professionals will increasingly rely on AI for routine yet critical tasks, freeing up time for higher-value work like prospect & renter engagement, strategic planning, and innovation. The first milestone: four hours per week freed up to take on more complex work and analysis.

2. Configured & Custom AI Solutions Will Gain Traction

Organizations will increasingly invest in customized AI tools tailored to their needs. For affordable housing, this could mean AI models trained on sector-specific data—like investment structures, compliance requirements, and ESG reporting.

What This Means:
Larger housing providers may consider or adopt shared industry-specific models (think: a rental housing AI co-op) to leverage tailored insights without shouldering the full cost of building a custom large language model.

3. AI Policy & Governance Will Take Center Stage

As AI adoption grows, so will concerns about ethics, privacy, and fairness. In 2025, organizations will prioritize building robust AI governance frameworks to ensure transparency, prevent bias, and protect sensitive data - and ensure employees understand the boundaries of how AI tools are to be - and not to be - used.

What This Means:
Expect more emphasis on bias audits, clear data ownership policies, and accountability measures. Organizations that adopt responsible AI practices will earn trust from employees, renters, vendors, investors, and regulators alike.

4. AI Will Play a Bigger Role in Resident Engagement

Resident-facing AI tools will become more advanced, offering personalized, responsive experiences. Multilingual chatbots, predictive maintenance notifications, and AI-driven service recommendations will become the norm for enhancing renter satisfaction.

What This Means:
Property management teams will lean on AI to anticipate resident needs, reduce response times, and improve overall communication—leading to happier tenants and fewer vacancies. Asset management teams will incorporate resident data flow from AI systems directly into their models to see & act on opportunities and risks faster than ever before.

5. Predictive Analytics Will Promise to Drive Smarter Decision-Making - But the Investment Horizon for Results Will Be Longer Than Our Patience

AI-powered predictive analytics will move from a buzzword to a must-have capability - at least in the words of marketing teams across the industry. From forecasting housing demand to anticipating maintenance issues, organizations will want to use AI to stay ahead of the curve - but few, if any, will be able to actualize the lofty promise in 2025.

What This Means:
If you're ready to make this investment, recognize a longer and more complex timeline from what you're being sold. We all want asset managers, developers, and property managers to rely on AI insights to make faster, smarter decisions about investments, portfolio performance, and resource allocation - and this may be available only in a handful of organizations who have already made the long-term investment in their data programs. Instead, start with smaller, easier initiatives within teams ready for AI transformation.

6. Affordable AI Will Expand Access for Smaller Organizations

In 2025, AI tools will become more accessible, with providers offering scalable, affordable solutions for smaller businesses. Think pay-as-you-go models, open-source innovations, and (on our wish list!) partnerships with industry associations.

What This Means:
Even smaller housing organizations will gain access to powerful AI tools at reasonable costs, leveling the playing field and allowing them to compete with larger players on efficiency.

7. Workforce Evolution Will Accelerate

AI won’t replace jobs, but it will change them. In 2025, the focus will shift toward upskilling individuals and teams to work alongside AI. Roles will evolve as professionals use AI tools to handle repetitive tasks, enabling them to focus on strategy, creativity, and relationships.

What This Means:
Organizations that invest in education and change management will see higher adoption rates and greater ROI from their AI tools. Expect to see new hybrid roles emerge, like “AI-powered property manager” or “resident engagement strategist.”

Final Thoughts: 2025 Is the Year to Lead with AI

AI is both a tool AND a transformative force reshaping how housing organizations operate and deliver value. The key to thriving in 2025 will be strategic adoption: investing in the right tools, building responsible practices, and preparing teams to collaborate effectively with AI.

The organizations that embrace these trends will not only keep pace but lead the way, setting new standards for innovation, efficiency, and impact in the rental housing sector.

The organizations that choose to sit on the sidelines will begin to fall behind in 2025 and find it more difficult to hire talent, maintain growth, and capitalize on efficiencies.

Are you ready for AI? 👉 Book a 15 minute call to assess readiness, set your strategy, and ensure you're ahead of the AI curve.