One of the hardest hit areas in the real estate market during the pandemic was the rental market in big cities. With many Americans fleeing big cities in favor of more space that allowed for social distancing, the demand for rental housing in big cities plummeted. In particular, the multifamily housing market took the biggest hit and prices declined considerably. However, rental prices in many of the largest metropolitan markets have rebounded and have actually surpassed pre-pandemic levels.
Rents are rising
- Rents in the 10 biggest U.S. tech cities have surpassed March 2020 levels by an average of 6.3%.
- Rents have grown at a double-digit pace (+13.6%) for the second consecutive month.
- The U.S. median rental price reached a new high of $1,654 in September, up 13.6% year-over-year.
- Annual rent growth in September was four-times faster than in March 2020.
- U.S. rents are now 15.5% ($222 per month) higher than in September 2019.
The rental housing market certainly appears to be past the pandemic recovery phase and is on solid ground now. It is important to remember that adding to the rental housing demand are many would-be home buyers that have either been priced out or outbid on properties. Many of these people have been forced back into the rental market but are still “shadow buyers” that are keeping a close eye on the housing inventory.
At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!