PayProp’s Property Management Market Report highlights key housing trends with our monthly data roundup. *
Although the single-family rental market appears to be weakening, a closer look reveals that it is still quite profitable.
- According to Realtor.com, the median national list price for homes fell from $416,000 in November to $400,000 in December.
- In a recent ATTOM Data webinar that PayProp attended, Mike Simonsen, founder and CEO of Altos Research, reports that there were 520,000 single-family homes available for sale at the end of 2022. He forecasts that inventory will slowly return to pre-pandemic levels of 725,000 over the coming year, especially if mortgage rates stay above 6.5%. By this estimate, the worst of the housing shortage could be over by the end of 2023.
- According to Redfin, the national median rent decreased 1.4% from November to $1,979 in December. Some institutional investors have hit the pause button after seven months of sluggish rental growth, but given that they’ve recently set aside $110 billion to buy or build single-family homes in 2023, it’s unlikely they will exit the single-family rental market anytime soon.
- Mike Simonsen and Rick Sharga, Executive VP of Market Intelligence for ATTOM Data, also believe that investors won’t wait indefinitely for optimal market conditions, even if some end up switching their focus from SFR to build-to-rent.
- This optimism appears to have finally translated into builder confidence, which rose four points to 35 in January, ending a 12-month skid reported by the National Association of Home Builders.
- Single-family housing starts in December were at a rate of 909,000, nearly 10% above November’s rate of 828,000.
* Our curated overview features key housing market indicators, with an emphasis on the single-family rental market.
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