Rental prices for single-family homes are surging month after month, with CNBC reporting a 9.3% increase in August caused by an uptick in demand for potential renters.
High rent prices are also pushing investors back into the market in a hastened effort to buy and build more rental properties.
For the first time since before the pandemic hit, all major metropolitan housing markets covered by CoreLogic showed positive rent growth. Miami led the way with a 21% gain, followed by Phoenix at 19% and Las Vegas at 15%.
“Converging economic trends are driving a surge in single-family rent prices, and consumer confidence has driven an uptick in demand for both renters and buyers,” Molly Boesel, economist at CoreLogic, said in a release. “The ongoing preference toward more living space — and slim for-sale inventory — is forcing would-be buyers back into renting, putting significant strain on the single-family rental market.”
The gains have investors rushing to buy and build more rental properties. In the past year there were roughly 43 announcements totaling more than $30 billion in capital targeting U.S. rental housing, according to tracking by John Burns Real Estate Consulting.