Single-Family Rental Prices Climb - Counsellors Title Agency

Inventory shortages as well as price increases across the board nationwide are having their collateral impact upon rents for single-family homes. Across the nation, rents for single-family homes have jumped anywhere from 3.9% to 6.1%.

The CoreLogic report that tracked the top 20 metropolitan markets indicated that Phoenix, Arizona reported the highest single-family rent increases from 2020, coming in at 12.2%. Another Southwest market, Tucson, Arizona, reported a 10.6% increase from 2020 as well. Las Vegas and Atlanta came in third and fourth, reporting 9.3% and 9.1%, respectively.

In some sense these are significant increases, but within the entire scope of the market, these single-digit increases do not compare with the sales price increases that were reported for these similar markets, which typically came in at 12% to 20% higher for single-family homes.

Some of the increase in prices is clearly attributed to the migration of home sellers from the Northeast and Northern Midwest into these Southern regions. Rather than selling their homes in the North at premium prices and then reinvesting those proceeds into homes in the South and Southeast, many sellers have opted to simply rent until the market potentially cools off.

According to the CoreLogic report, rents for single-family detached homes were up 7.9% as compared with 2020.

The migration had a negative impact upon single-family rentals in Boston and Chicago. Boston reported a 5.9% rent decrease in price as well as Chicago, which reported the 2.6% decline.

If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.

Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.

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