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Single-family rental homes are becoming more expensive. This is where prices are rising


Even as the overall US rental market cools, single-family rentals are bucking the trend, according to a new report.

While every year Rent growth turns negative in March After a period of double-digit price increases in 2021 and 2022, the monthly rent for a single-family home increased from $1,880 to $2,330 by the end of the first quarter of 2023 (last week of March) compared to the same period. period in 2022, an increase of 6% increased. This comes despite a 75% increase in inventory year over year, from 36,688 to 64,210, according to HouseCanary analysis shared exclusively with USA TODAY.

EQUAL uncertainty emerges in the housing market, With successive Fed rate hikes, rising mortgage rates and home prices remaining high, potential homebuyers are looking at the single-family rental market, said Brandon Lwowski, research director at HouseCanary. family.

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“Demand for those rentals, in terms of single-family homes, is outpacing inventory,” he said. “So we’re still seeing this upside.”

Those who will be homebuyers are waiting for house prices to cool down and waiting for high interest rate helped push the average listing price to a multi-year high.

At the end of the quarter, the national median rent for single-family homes was $2,395, up 20% year-on-year in 2021 and up 6% year-on-year in 2022. In addition, there are about 64,210 listings on the market on average weekly, up 75% year-on-year.

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Like Federal Reserve continues to raise interest ratesLwowski said that rental prices have not cooled down even though the number of listings has increased.

For the overall rental market, which includes apartments and multi-family rental homes, rising vacancy rates, new construction inventories and a bleak housing market are pushing down home prices.

The biggest annual increase IN average monthly single-family rental listing price

Average monthly rents in the Albany, New York area increased 30%, from $1,519 to $1,974 between the end of the first quarter of 2022 and the same period this year. With the exception of the major city area in Naples, Florida, where median monthly rents increased 24%, from $4,637 to $5,756, the strongest price increases show that renters are increasingly interested in growing large city areas. development at low cost.

Major cities have the largest annual increases in average monthly rent for a family

Major cities have the largest annual increases in average monthly rent for a family

Major cities have the largest annual decline in average monthly rent for a family(Photo: HouseCanary)

Largest annual reduction in average monthly list price for a family

Areas in the Southeast that have seen significant growth during the pandemic are seeing rents fall from previous highs. Denver, Colorado, for example, had the biggest drop in rental listing prices from the first quarter of 2022 through the first quarter of 2023 with a 5% drop.

Major cities have the largest annual decline in average monthly rent for a family

Major cities have the largest annual decline in average monthly rent for a family

Swapna Venugopal Ramaswamy is USA TODAY’s housing and economics correspondent. You can follow her on Twitter @SwapnaVenugopal and subscribe to our Daily Money newsletter here.

This article originally appeared on USA TODAY: Exclusive: Single-family rents still rising

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