flexiblefullpage - default
Currently Reading

Slowing Market, Swelling Rental Prices

Advertisement
billboard - default

Slowing Market, Swelling Rental Prices


March 27, 2019
The nation's housing market is cooling down as construction activity has decreased, inventory remains tight, and affordability, while loosening due to lower interest rates, is still a headwind. Economists say rental prices may rise as a result. 
Photo: Unsplash/Ricardo Gomez Angel

The nation's housing market is cooling down as construction activity has decreased, inventory remains tight, and affordability, while loosening due to lower interest rates, is still a headwind. Economists say rental prices may rise over the next year as a result. 

Pantheon Macroeconomics estimates more than 4 percent annual growth in rental prices by 2020. The economic research consultancy's chief economist Ian Shepherdson tells Business Insider, "The flat trend in multi-family permits is a key part of our view that the rate of increase of CPI rents is set to rise this year." Recent Commerce Department data show that multi-family construction increased in February, but the number of permits issued was lower than in January. Housing starts were down nearly 9 percent in February.

With the unemployment rate at historic lows and signs of upward pressure on wages, the housing market has been a soft spot in an otherwise humming economy.

A growing disconnect between the two could muddle the outlook for consumers and further delay investment, according to Jonathan Miller, the chief executive of Miller Samuel, a real-estate and appraisal firm. "Consumers are still looking to buy, but they're waiting until they're more comfortable," he said. "People have a lot to process, and the sense of urgency to buy hasn't been there in more than a year."

Read more

Advertisement
leaderboard2 - default

Related Stories

Build to Rent

Build-to-Rent Is Booming, Particularly in These Metros

A recent report finds that the Phoenix metro leads with more than 4,000 build-to-rent units completed in 2023, and Texas is the leading state for build-to-rent development

Sustainability

Which Green Building Practices Are Home Builders Using Most?

A recent report reveals which green-building practices are most popular among single-family home builders and remodelers

Market Data + Trends

Single-Family Permits Show Increase in February

Year-to-date ending in February, single-family permits were up in all four regions of the U.S.

Advertisement
boombox1 -
Advertisement
native1 - default
halfpage2 -

More in Category

Delaware-based Schell Brothers, our 2023 Builder of the Year, brings a refreshing approach to delivering homes and measuring success with an overriding mission of happiness

NAHB Chairman's Message: In a challenging business environment for home builders, and with higher housing costs for families, the National Association of Home Builders is working to help home builders better meet the nation's housing needs

Sure there are challenges, but overall, Pro Builder's annual Housing Forecast Survey finds home builders are optimistic about the coming year

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.