HouseCanary, Inc. (“HouseCanary”), a national brokerage known
for its innovation and accuracy of real estate information, today
released its latest National Rental Report, showing that
Single-Family Rental (SFR) inventory and days-on-market continue to
see gradual growth, which increased at 16.7% and 15.4%,
respectively. The increases in both metrics were driven by trends
seen in the southern states.
Consequently and consistent with preceding reports, the stable
growth seen in both inventory levels and days-on-market coupled
with ongoing demand for rentals as an alternative to homebuying,
the median national rent price also saw a slight increase of 2.3%
compared to the previous year.
Chris Stroud, Co-founder and Chief of Research at HouseCanary,
commented: “Our latest report generated results well-within our
expectations, with a spike in inventory levels and days-on-market,
particularly in the southern states. While the region saw strong
and increasing demand in housing due to in-migration during the
pandemic and ultimately drove real estate developments, that is no
longer the case at this time. Florida is the perfect case study for
this as the state saw the biggest increase in pricing between 2021
- 2022, but our latest report showed the opposite trend, with the
state seeing the most significant decrease in pricing in the first
half of this year.”
Brandon Lwowski, Senior Director of Research at HouseCanary,
added: “Furthermore, we continue to see a slight uptick in listing
prices, which were up 2.3% from the same period last year. People
are still choosing to rent as opposed to buying homes, in order to
unshackle themselves from the long-term financial commitments of
purchasing. On top of that, interest rates remain at multi-year
highs, which further hinder buying capabilities. With the
anticipated cutting of interest rates in the remainder of the year,
we look forward to seeing how this can potentially shape the
housing market in the second half of 2024.”
Following a thorough analysis of the aggregated data,
HouseCanary’s report identified the following key findings about
the rental market for single-family detached listings in the first
half of 2024:
- Available-for-rent inventory nationwide shoots up: In H1
2024, available-for-rent inventory continued to increase 16.7%
compared to the previous year. As a result, this half only saw
marginal year-over-year increases in median SFR prices at just
2.3%, similar to the previous report.
- Continued inventory influx results in days-on-market
surge: The average days-on-market experienced a surge of 15.4%
year-over-year. The increase in days-on-market was led by southern
states, coupled with the region’s increase in inventory levels.
Greenville-Anderson-Mauldin, SC saw the most significant increase
in days-on-market, 145.2%.
- Southern states leading the increase in inventory: The
top ten MSAs that experienced the most significant increase in
inventory levels were all southern states, led by Florida. The
increase in inventory does not necessarily signal only a decrease
in demand, but may be the result of other external factors, such as
ongoing real estate developments and investments that drive supply
up.
- Florida's Ongoing Rental Rollercoaster: Six out of the
top ten MSAs that experienced the largest annual decrease in
listing prices were in Florida, opposite of the trends seen almost
two years ago in H2 2022 when Florida MSAs experienced the highest
price increases. This can potentially signal a return to
historically-normal price levels in the state.
The full report with all additional findings can be viewed
here.
Methodology
HouseCanary’s H1 2024 Rental Report compares insights from H1
2023 and H1 2024 to explore trends shaping the U.S. rental market
for single-family detached listings, including price and supply
shifts across 43 states and 153 metropolitan statistical areas
(“MSAs”) with the most rental market activity. The findings in
today’s report represent an aggregation and summary of all
single-family detached listing records between January 2024 and
June 2024.
This report is run at a quarterly cadence in order to capture
the quick changes that can occur in a volatile market that has been
experiencing record-level growth and prices over recent years.
While the Rental Report is a nationwide snapshot of the health
of the market, detailed rental statistics are available for 153
MSAs for SFR investors looking for insights into specific
markets.
About HouseCanary
Founded in 2013, national real estate brokerage HouseCanary
empowers consumers, financial institutions, investors, and mortgage
lenders, with industry-leading services including valuations,
forecasts, and transactions. These clients trust HouseCanary to
fuel acquisition, underwriting, portfolio management, and more.
Learn more at www.housecanary.com.
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Longacre Square Partners Aliah Aquino / Emma Rosh
housecanary@longacresquare.com