Single-Family Rental Market Shows Signs of Overheating

July 21, 2015

A new report by Moody’s Analytics suggests that monthly costs for single-family rentals are unsustainable in some markets.

Rents in one of the hottest markets in the nation, San Jose, Calif., appear to be 19 percent overvalued when compared to home prices, the Wall Street Journal reports. The average rental price for a single-family home there is now $3,121, whereas if it were relative to home prices, the average rent should be $2,632, the report says.

Denver is another market where there are signs of overheating. Rents here are 18 percent overvalued with families paying $1,746 on average.

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