flexiblefullpage - default
Currently Reading

Pandemic Shakes Up Rental Market As Pending Sales Make a Comeback

Advertisement
billboard - default

Pandemic Shakes Up Rental Market As Pending Sales Make a Comeback


May 21, 2020
For rent concept with price tag
By Pixelbliss

While the for-sale market has been starting its recovery, the rental market is showing signs of strain. In the largest monthly drop in at least five years, annual rent growth has slowed by half a percentage point in April, according to Zillow. The decline has disrupted the steady growth the rental market has had since 2018. Though rent does seasonally fluctuate, looking at the number of cities experiencing a drop in rent is telling: One year ago, 11 of the 35 largest metros had a drop in the growth rate. Now, the count is up to 33 metros. The bright spot for single-family residence home builders? For-sale listings have been increasing and pending sales are up for the month. 

Annual rent growth slowed by half a percentage point in April from March, the largest monthly drop in at least five years, as the U.S. coronavirus pandemic and resulting economic slowdown that began in March hit in fuller force last month. But while the rental market slowed, more-recent data from the for-sale segment shows modest acceleration after a slow early-April.

Rent growth had been chugging along at a remarkably stable pace since 2018, with the growth rate rarely rising or falling much from one month to the next. That changed in April, the first full monthly reading since the coronavirus pandemic struck the U.S. Typical U.S. monthly rent was $1,594 in April, according to the newly released Zillow Observed Rent Index (ZORI) — up 2.9% from a year ago, but still the slowest annual growth pace recorded since December 2017. Rents were growing 3.4% year-over-year in March, and that 50 basis point slowdown is the largest since at least 2014, when the ZORI series begins.

Read More
 

Related Stories

Market Data + Trends

The Biggest Hurdle for Housing Is Seller Hesitation, Experts Say

Elevated borrowing costs are currently affecting both homebuyers and sellers, with buyers hesitant to spend and sellers unwilling to list and sacrifice the lower rates they've locked in on their current homes

Government + Policy

Bipartisan House Bill Aims to Incentivize Home Selling

The More Homes on the Market Act seeks to amend the sales gain tax exclusion to bring more homes into the for-sale market

Market Data + Trends

A New Normal? Why Experts Are Calling Today’s Housing Market an ‘Ice Age'

The housing market is going through a deep freeze as elevated interest rates keep sellers on the sidelines and send available housing inventory to new lows

Advertisement
boombox1 -
Advertisement
native1 - default
halfpage2 -

More in Category



Advertisement
native2 - default
Advertisement
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.