Eviction bans squeezed supply, bringing rents to boil: report

Cities in Florida have seen the highest price hikes

National /
Nov.November 12, 2021 01:00 PM
Inventory is lighting a fire under rents (Getty)

Inventory is lighting a fire under rents (Getty)

As it did for home prices, short supply has lit a fire under rents. A report from brokerage HouseCanary says eviction moratoriums are partially to blame for the price increases.

Throughout 2020 and much of 2021, national and local eviction protections kept renters in their homes and made some landlords reluctant to list vacancies for fear a new tenant might move in and stop paying.

As protections have expired — the Supreme Court tossed President Joe Biden’s ban in August — HouseCanary argues landlords are still “hesitant to open new listings,” thereby limiting the pool of available units and driving up prices.

Cities in Louisiana and Florida have seen the sharpest drop in vacancies. Baton Rouge, for example, reported a 78 percent decrease in properties available for rent since the start of the pandemic.

In Fort Myers, Florida, available units shrunk by over 50 percent in the same period, while median rents in the area doubled.

Driving those shifts is the lingering impact of pandemic exoduses. As remote workers sought out warmer locals, inventories withered and prices ballooned.

Now as return-to-office plans have pulled tenants back to urban living, coastal cities like New York are experiencing similar inventory shortages, inflamed by the continued warehousing of apartments.

In April, UrbanDigs found landlords were keeping over 50 percent of New York’s rental stock off the market, YieldPro reported.

Another puppet master behind rising rents is the hot housing market. An incredibly tight market for homes has pushed would-be buyers into the rental market, further straining supply.

HouseCanary does expect supply to normalize over the next few months, taking pressure off rents. But tenants shouldn’t expect any near-term discounts.





    Related Articles

    arrow_forward_ios
    No Joke: Pete Davidson (left) and Colin Jost just purchased a Staten Island Ferry boat. (Getty)
    Floating real estate: Colin Jost, Pete Davidson buy Staten Island Ferry boat
    Floating real estate: Colin Jost, Pete Davidson buy Staten Island Ferry boat
    Vicky Ward (CNN)
    Vicky Ward breaks down New York State’s Trump investigation
    Vicky Ward breaks down New York State’s Trump investigation
    Lloyd's of London headquarters at Lime Street (Lloyd's of London/CC BY 2.5 - via Wikimedia Commons, iStock)
    Lloyd’s of London may exit “Inside Out” home after three decades
    Lloyd’s of London may exit “Inside Out” home after three decades
    (iStock/Illustration by Kevin Rebong for The Real Deal)
    NYC investment sales hit multi-year peak to end 2021
    NYC investment sales hit multi-year peak to end 2021
    Tax assessments rise 9%, signaling higher bills for landlords
    Tax assessments rise 9%, signaling higher bills for landlords
    Tax assessments rise 9%, signaling higher bills for landlords
    From left: Ryan Johnson and Jeff Berens, co-founders of Culdesac, in front of a rendering of Culdesac Tempe (Culdesac, iStock)
    Startup that wants to build car-free cities raises $30M Series A
    Startup that wants to build car-free cities raises $30M Series A
    From left: Stephen Schwarzman, chairman, Blackstone; Barry Sternlicht, chief executive officer, Starwood Capital Group (Getty Images, Brookfield Asset Management/Illustration by Steven Dilakian for The Real Deal)
    Blackstone, Starwood to pay $1.5B for WoodSpring Suites properties
    Blackstone, Starwood to pay $1.5B for WoodSpring Suites properties
    Keith Powers, Democratic District 4 representative on the New York City Council, in front of 45 East 45th Street (Getty Images, The Roosevelt Hotel, iStock/Illustration by Steven Dilakian for The Real Deal)
    Local lawmakers aim to landmark shuttered Roosevelt Hotel
    Local lawmakers aim to landmark shuttered Roosevelt Hotel
    arrow_forward_ios

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

    Loading...