If you strictly went by rental prices, you would think there was never a pandemic impacting our economy. In fact, a recent report shows that rent prices surged beyond levels that they would’ve been at based on pre-pandemic trends. This strong momentum in rental price increases began around March 2021 and has been continuing since. We look at some of the data below:
A look at the numbers
- Average rents grew 9.2% year-over-year in July 2021
- The average rent in the U.S. as of July 2021 was $1,843/month
- July rents were 2.9% ($52) higher than they would have been without the pandemic.
- Tampa, FL had the 3rd highest rent growth of any metro city in the nation at +21.4%.
- For-sale home prices saw a 2% monthly gain and a 16.7% year-over-year appreciation.
- The for sale home inventory grew by 4.5% from June to July.
- July marks the third consecutive month of a rising supply of homes for sale.
Summary
A big reason for the consistent price increases in the rental market is due to the fact that more would-be home buyers are entering the space. With persistently low inventories of homes for sale and many still being sold in bidding wars, this has left many buyers frustrated. In some cases, buyers are even being priced out of the home purchase market due to rapidly increasing prices. This results in even more people competing in the rental market space. On the bright side, we have continued to see an improvement in the inventory of homes for sale. It is largely expected that this should help level off real estate prices and thus provide some relief to the competitiveness in the rental market.
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. At Live South Florida Realty, Inc., we have 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!
