Rents Are Falling Nearly Everywhere—but Rising in These Surprising Cities

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Housing inventory up almost 40% over last year link

• Inventory has surged to 668,383 homes, a significant increase from the 240,000 homes available at the pandemic's low in March 2022. This marks an improvement in market health, although it remains below pre-pandemic averages.

• Despite rising home prices, the rate of increase has slowed compared to the rapid growth seen in 2020 and 2021. Higher mortgage rates and increased inventory are contributing factors.

• New listings have not met expectations, with the peak weekly listing at 72,329, below the target of 80,000. This indicates potential challenges for sellers in the second half of the year.

Single Family Rental trends link

• SFR demand remained strong in H1 2024, with healthy economic drivers like job growth and rising incomes. These factors support consistent occupancy rates and rent growth.

• The Burns Single-Family Rent Index™ showed a 3.9% year-over-year rent growth in May 2024, higher than the historical average of 3.6%. This index is a leading indicator for the broader SFR market.

• For-sale affordability issues are making homeownership difficult, pushing more people toward SFR. This trend boosts the demand and stability of the SFR market.

• SFR REITs reported notable rent growth: Invitation Homes saw a 3.5% increase, while American Homes 4 Rent reported a 5.4% rise in new lease rents in May 2024. These figures align with the Burns Single-Family Rent Index™ predictions.

• Historical forecasts by John Burns Research and Consulting have been accurate, with their start-of-year rent growth predictions closely matching actual outcomes. This consistency helps investors make informed decisions.

Rents Are Falling Nearly Everywhere—but Rising in These Surprising Cities link

• The median asking rent in the 50 largest metros for June was $1,743, a $7 decrease from June 2023. Despite this, certain cities still face rising rental prices, particularly in the Midwest.

• Indianapolis saw the highest annual rent increase in June at 4.4%, bringing the average rent to $1,353 per month. Milwaukee and Minneapolis followed, both with a 3.7% increase, reaching median rents of $1,717 and $1,549 respectively.

• Tampa, FL, experienced the largest rent increase since the pandemic, with a 39.5% rise since 2019. The median rent in Tampa in June 2024 was $1,752, meaning renters pay an extra $496 per month compared to five years ago.

• Indianapolis also led the Midwest in rent growth over the past five years, with rents rising 37.5% since 2019. This translates to an additional $369 per month for renters in the city.

• In the Northeast, Pittsburgh saw the highest rent growth, with a 37.4% increase since 2019. Renters in Pittsburgh now pay $1,484 per month, $404 more than before the pandemic.

The 8 Most Electric Vehicle-Friendly Markets for Renters Link

• Renters often struggle to find accessible EV charging stations compared to homeowners, as they rely more on public facilities. This lack of charging options is a significant barrier to EV adoption among renters.

• Austin, TX, and Los Angeles lead in EV-friendly rental listings at 1.7%, followed by San Jose, Orlando, Atlanta, Phoenix, San Francisco, and San Diego. However, these listings are more common in luxury rental communities, which may come with higher costs.

• California's building codes now require 25% of parking spots to be EV-ready, indicating progress in some areas. Property managers who adapt to this growing demand can attract more renters by offering on-site charging or EV-friendly features.

Texas housing inventory jumps 40%, but prices stay flat link

• Texas saw a dramatic 40.8% increase in housing inventory in Q2 2024 compared to the same period last year. Despite this surge, the median home price in the state remained nearly flat, rising just 0.6% to $345,000.

• The number of active listings in major Texas cities like Dallas, Houston, and San Antonio grew by over 40%, resulting in higher months of supply. However, Austin's increase was smaller at 29.5%, reflecting a cooler market compared to previous years.

• Some areas in West Texas, including Odessa and Abilene, experienced significant price growth, with median prices increasing by over 11%. These regions also saw more modest supply increases, maintaining a relatively lower months of supply compared to other parts of the state.

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That's all, folks.

Cheers,

Vidit

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