In the Second Half of 2022, Renters Experienced Less Difficulty Finding Single-Family Rentals, as Rental Listing Inventory Experienced a 93% Year-Over-Year Increase and Days on Market Increased 52% Year-Over-Year
The East Coast and Industrial Midwest Continued to Be Hotspots for Real Estate Investment Opportunities Due to Dramatic Single-Family Rental Listing Price Increases Since H2 2021
Southern States Experienced Largest Increases in Median Monthly Single-Family Rental Listing Prices, Making Up 70% of the Top Ten List for H2 2022
HouseCanary, Inc. (“HouseCanary”), a national brokerage known for its real estate valuation accuracy, today released its latest National Rental Report, which compares insights from H2 2021 and H2 2022 to explore trends shaping the U.S. rental market for single-family detached listings, including price and supply shifts across the nation’s top 65 metropolitan statistical areas (“MSAs”) with the most rental market activity. The report can be downloaded and viewed here.
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HouseCanary: National Rental Report - H2 2022 (Graphic: Business Wire)
HouseCanary tracks listing volume, new listings and median listing price information for 46 states and 204 individual MSAs. The findings in today’s report represent an aggregation and summary of all single-family detached listing records between January 2020 and December 2022.
Chris Stroud, Co-founder and Chief of Research at HouseCanary, commented: “In the second half of 2022, inventory for single-family rentals almost doubled since the same period in 2021, indicating reduced competition among renters for single-family homes across the country. However, demand for rentals remained strong, with median list prices sustaining historical highs. We expect strong demand for rentals to persist in 2023 as analysts predict the Federal Reserve will continue hiking rates for the foreseeable future.”
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 second half of 2022:
- The once-tough competition for single-family rentals has begun to simmer down thanks to increased supply. There was an 89.9% year-over-year increase in the weekly average of listings in the last six months of 2022.
- Southern states, such as Florida, Georgia and South Carolina, have experienced sustained upward growth in the real estate investment market even as the impact of the pandemic wanes. Most notably, Charleston, South Carolina and Naples, Florida, experienced a 25.3% and 24% median rental price increase year-over-year, respectively.
- Rent prices remain historically high despite meaningful increases in supply. MSAs that experienced a year-over-year median list price decrease only saw low-to-mid single-digit reductions, with Memphis, Tennessee seeing the largest decrease of just 5.8%.
- Sunshine States continue to lead the nation in highest median rent prices for H2 2022. MSAs in California and Florida boasted some of the most expensive single-family median monthly rental prices. MSAs in these two states comprised 60% of the 10 highest average monthly rents across the country, with Naples, Florida taking the top spot at $5,446.
- While the first half of 2022 saw the Industrial Midwest emerging as one of America’s most popular real estate markets, the remainder of the year suggested otherwise. Overall, rental price growth in the Midwest has begun to flatline while other parts saw some of the largest decreases in median monthly single-family rental prices. Cleveland, Ohio experienced the largest monthly decrease of any MSA, with a 17.7% monthly decrease recorded in the second half of 2022.
Additional findings can be reviewed in the full report here.
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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