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SAN FRANCISCO–(BUSINESS WIRE) -- August 7, 2024
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.
Additional findings can be found in the full report.
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.
