What Is Happening With The US Rental Market?

Lenders  |  RE Agencies  |  Resources  |  Technology  |  Marketing  |  and more!

What Is Happening With The US Rental Market?

Jan 18, 2023 | News | 0 comments

The single-family rental market is experiencing unprecedented competition with consumers choosing to rent instead of purchasing due to higher interest rates.

According to a study by geospatial analytics firm CAPE Analytics and Market Stadium, which provides insight into more than 110 million American properties. The study identifies the top 10 US housing markets that are most likely to add value to single-family rentals in 2023.

According to the study, landlords, property managers, and institutional investors face an unclear path forward as large financial institutions like JP Morgan prepare to invest hundreds of millions in SFR investments.

According to the study, investors across the country can now easily identify investments with renovation opportunities to those with new developments and high forecasted value growth, whether they are in large metro areas like Los Angeles or smaller markets like Baytown, Texas.

RentSpree’s CEO, Michael Lucarelli, described the scenario that led to this kind of competition in a separate interview.  The main thing has to do with looking at the for sale as a starting point, Lucarelli told Mortgage Professional America, since many people are in no man’s land when they are trying to purchase a house. In the aftermath of the pandemic, those really low-interest rates crept up and are now roughly over 7%, depending on where you live. People are having a hard time purchasing homes this year because of this. Having said that, the market is likely to swing a little bit in favor of buyers this year, where you won’t necessarily see a huge drop in for sale prices, but just a leveling out. As a result, things will be a little more open.

In the current market, Lucarelli said, rental markets are more competitive. Accordingly, companies have refocused on their services with a more acute perspective as a result of the changes: Lucarelli explained that there is more competition, but what we are seeing is a refocus on what professionals should be helping with and what services they should be offering. In a nutshell, we want to assist them in embracing those types of activities they didn’t have to handle as much in 2021 and 2023.