Given all the market activity, all the actions of the Federal Reserve, and all the expert stories GlobeSt.com has heard over the past few months, Rental Beast, a rental data and software proptech company, Headlines almost inevitably include: Mortgage interest rates continue to rise. ”
“Licensing searches conducted by licensed realtors and REALTORS nearly doubled in six out of 10 US rental markets in the last quarter,” the company said. We used internal data from searches by real estate professionals. The top three markets with year-over-year increases were Miami (215%), Denver (211%) and Houston (121%). After that trio, the numbers dropped sharply. Dallas-Fort Worth, number 10 on the list, had a recent annual growth rate of 54%. “Last quarter’s increase in rental inquiries was largely due to affordability sidelined potential buyers,” the company wrote.
Even in a series of partnerships with the “major multiple listing service” claimed by Rental Beast, the numbers are self-selected only by searching within the system. Still, these are sizable growth rates, and their dynamics are consistent with how experts have assessed the market.
As multiple CRE experts have said, everyone needs somewhere to live, so the more you can’t afford to buy a home, the more likely you are to need an apartment.
The housing market is deteriorating for multiple reasons. Mortgage interest rates are certainly one. The prices are also incredibly high. The median selling price in the third quarter was $454,900, up 38.3% from $329,000 in the first quarter of 2020, according to the company. Data from the Census Bureau and the Bureau of Housing and Urban DevelopmentIncome has not increased significantly. That means it’s getting harder and harder to put together a down payment.
Clearly out of stock Data from the National Association of RealtorsIn October 2019, there were 1,208,438 listings. A year later, that number is 733,244. Last October, 564,790. Last month, 753,845. We’re on the road to recovery, but we’re still a long way from pre-2020 numbers.
This trend has rocked the homebuilding industry. By mid-2022, Urban housing construction slowed as apartment building construction surged When Housing construction continues to slow.
Rising prices and shortages of inventories meant that home buying had to decline. Meanwhile, people were discouraged and could not just sit back and wait for the situation to improve. So their alternative options included moving back in with mom and dad or looking for a rental.but now rent is starting to fallat least to some extent.
As seen in the financial and housing crises of 2008, there is a limit to how much property prices can rise for all types of housing. Eventually, people can’t afford that amount and find other ways to live — such as moving to a family, a cheaper place, or sharing a space with a roommate — and landlords say the demand is there. The price must be lowered even if it is expensive.