The good news is for landlords. Rents are up sharply and tenants are plentiful. The bad news is for renters.
A number of factors are contributing to heat up the Single-Family Rental Market. A perception that in many markets pricing has bottomed out and is beginning to increase has brought more investors into the market. At the same time, the aggregate number of ex-homeowners forced to rent after a foreclosure event is at an all time high.
Nationwide, rental leasing volumes have been up every month during the last two years. Year-to-date, leasing volume is up 12 percent year-over-year. Listing time is steady at six weeks.
The single-family rental market remained very active this past summer, with increases in demand, tightening inventory and rising rents.
Nationally, rental leasing volumes were up sequentially every month during the last two years. Over this same time period, an average of 42,000 rentals was added to the stock of rental homes each month. This is more than twice the average flow that the U.S. was experiencing prior to the housing recession.
While the housing market is now a significant contributing factor to economic growth, it will take much more time before the housing market sees a full recovery. Short- to medium-term factors driving this recovery are fueled by an investor-based demand for rental properties, combined with rising home prices and a decline in the number of under-equitied households. A full housing recovery will be driven by a healthier economy, fundamental gains in income growth and consumption, and an ongoing increase in home prices.
To view the original article, visit the CoreLogic Broker Cafe blog.