During the month of July, single-family home rents were 12.6% higher compared to the same month a year ago, but earnings continue to slow from the all-time high seen in April.
According to a new report from CoreLogic, a leading global provider of data-driven solutions, analytics and property insights, a similar easing in price growth was seen in most major metropolitan areas.
“July marked the third month of slower annual earnings on single-family rentalssaid Molly Boesel, principal economist at CoreLogic.
This cooling has been experienced even in the area of Sun Belt, where rents skyrocketed the most during the early years of the pandemic.
Miami continues to experience the highest gain, with rents up nearly 31% from the previous yearbut is actually lower than the 41% growth seen in March.
Phoenix rents increased 12.2% in Julybut down from the 18% increase in March.
“The large increases in rental prices in the main metropolitan areas of Sun Belt over the past year have eroded affordability, making these areas less attractive for people who may have been considering migrating and thus moderating demand,” the report states.
In the midst of this scenario, finding a rental home has become quite a challenge; however, there are tips that you can take into account when doing so.
Meanwhile, rent growth has picked up a bit in some big Northeast markets, such as Philadelphia, New York and Washington, DC. The return to work of government employees in DC and tech and finance workers in New York is driving this trend.
While Miami and Atlanta are experiencing the highest rental gains, St. Louis and Honolulu are experiencing minor. However, vacancy rates remain extremely low in most major markets as demand outstrips supply.
Rents soared in warmer places, much of it due to the relocation of remote workers during the pandemic. They also chose single-family homes over apartments because they wanted more space.
That demand drove rent increases and hit affordability hard. Now that inflation is putting a strain on consumers’ wallets, the demand for these high-priced rentals is declining and owners are losing pricing power.
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Source: La Opinion