Asking rents for single-family homes have spiked 13% since January

Highest such increase in five years as priced-out homebuyers (and investors) flood market

National /
Aug.August 31, 2021 11:35 AM
As the housing market soars, rents for single-family homes are spiking along with it. (iStock)

As the housing market soars, rents for single-family homes are spiking along with it. (iStock)

Prospective homebuyers priced out of the booming housing market are flocking to rentals as a flexible and more immediately affordable alternative. Unfortunately, prices are soaring there as well.

Asking rents for single-family homes jumped nearly 13 percent year-to-date through the end of July, the highest such increase in five years, the Wall Street Journal reported, citing data from research firm Yardi Matrix.

Multiple factors are contributing to the spike. Joining those unable to buy homes are city residents who opted to rent in the suburbs while waiting out the pandemic, further driving demand.

Additionally, fewer homes are being built and put on the market for both buyers and renters, further hamstringing supply. Housing starts dropped 7 percent month-over-month in July, falling short of expectations as builder confidence hit a 12-month low.

The price increases are accelerating. Asking rents for single-family homes increased 7.2 percent year-over-year in March, 8.6 percent in April, 10.5 percent in May, 12.2 percent in June, and 12.8 percent in July, according to Yardi data.

Including renewals, rents for all single-family homes nationwide spiked 7.5 percent year-over-year in June, according to data from CoreLogic, the highest annual increase recorded in at least 15 years.

Investors are taking notice, with alternative asset managers and private equity firms including Blackstone and KKR injecting billions into the market this year alone.

Apartment asking rents have increased this year as well, although less dramatically. They’re up 8.3 percent nationwide since the start of the year, according to Yardi. Single-family tenants renewing their leases are also seeing prices rise, but not to the same extent as new asking rents, the Journal reported.

[WSJ] — Holden Walter-Warner





    Related Articles

    arrow_forward_ios
    Home sales dipped in August after two months of increases
    Home sales dipped in August after two months of increases
    Home sales dipped in August after two months of increases
    Here are the homes that billionaire Paulsons will spar over in divorce
    Here are the homes that billionaire Paulsons will spar over in divorce
    Here are the homes that billionaire Paulsons will spar over in divorce
    Builders broke ground on more residential properties in August than had been predicted, but the number of single-family housing starts fell below expectations. (iStock)
    August housing starts rose but single-family properties fell short
    August housing starts rose but single-family properties fell short
    Compass CEO Robert Reffkin and First Alliance Title co-founders Lon Welsh and Greg Parham (Compass, First Alliance)
    Compass picks up another title company
    Compass picks up another title company
    Joshua Kushner and Karlie Kloss, with the Puck Building at 295 Lafayette Street (Photos via Getty, Ceros)
    Joshua Kushner, Karlie Kloss selling Puck Penthouses condo
    Joshua Kushner, Karlie Kloss selling Puck Penthouses condo
    New York’s rent relief fund may run dry Monday
    New York’s rent relief fund may run dry Monday
    New York’s rent relief fund may run dry Monday
    Blueground CEO Alex Chatzieleftheriou (Getty, LinkedIn via Chatzieleftheriou)
    Blueground raises $140M in Series C equity, valuing startup at $750 million
    Blueground raises $140M in Series C equity, valuing startup at $750 million
    (Getty)
    Freddie Mac study of 12 million appraisals shows racial disparity
    Freddie Mac study of 12 million appraisals shows racial disparity
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...