Single-family home rents are skyrocketing

Rents are rising
Strong demand + inflationary pressures are raising rental prices.

The U.S. inflation rate by year is the percentage of change in product and service prices from one year to the next. This is also reported as year-over-year inflation. The Federal Reserve is constantly monitoring this figure and uses monetary policy to achieve its target rate of 2% inflation. The U.S. inflation rate as of December 2021 was 7.0% compared to a year earlier. This is the highest level that we have seen in approximately 30 years.

Needless to say, we are seeing these price increases play out in the real estate market as well. With regard to the single-family home rental market, we have actually seen a 115% increase in prices over the past year. In fact, certain metro areas across the country have even seen higher increases.

4 tiers of single-family rental prices

Overall, we have seen single-family rental prices increase the most in the higher price tiers. The breakdown of the year-over-year changes were as follows:

  • Lower-priced (75% or less than the regional median): 9.5%, up from 2.8% in October 2020
  • Lower-middle priced (75% to 100% of the regional median): 10.1%, up from 2.8% in October 2020
  • Higher-middle priced (100% to 125% of the regional median): 11.3%, up from 3% inOctober 2020
  • Higher-priced (125% or more than the regional median): 11.4%, up from 3.5% in October 2020

Summary

Among the major metro areas studied across the country, the Miami, FL market had the highest year-over-year increase in single-family rents in October 2021 at 29.7%. Although this is a significant increase, it is also not too surprising considering the amount of Americans relocating to South Florida. As we have written about many times before, the South Florida real estate market will continue to experience high demand. This is particularly being seen in the single-family home rental market.

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!

By natasha@livesouthfl.com

REALTOR® with Live South Florida Realty, Inc.

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