- The national inventory of homes for rent rose by 16.7% YoY in 1H24, leading to slower rent growth and longer times on the market.
- Florida, which saw significant gains in previous years, is now seeing the biggest declines, with four Florida metros ranking among the top 10 for inventory growth.
- Despite the slowdown, the SFR sector remains stable. Rent growth continues, with the national median rent reaching $2,444.
- The Western U.S., including California, Arizona, Nevada, and Colorado, is seeing higher demand for SFRs due to favorable job markets and climates.
According to a new report from HouseCanary, the inventory of single-family homes for rent nationwide shot up by 16.7% YoY in 1H24.
By The Numbers
This surge in available homes has led to 15.4% more days on the market and a modest 2.3% rise in rents, as reported in Globest.
Florida, which saw significant rent hikes between 2021 and 2022, is now suffering the opposite trend. Chris Stroud, co-founder and chief of research at HouseCanary, noted that 4 of the 10 metros with the largest inventory increases are in Florida, contributing to a significant slowdown in rent growth.
Stable, Shifting Market
Despite these changes, the report notes that the SFR sector remains stable, with healthy fundamentals like steady occupancy rates and balanced supply.
However, the slowing pace of rent growth suggests increasing demand for rentals as an alternative to home buying, with the national median rent reaching $2,444 by the end of 1H24, up 2.3% YoY.
Regional Variations
The report also points to regional variations in the SFR market. Western states like California, Arizona, Nevada, and Colorado are seeing strong demand, likely due to their favorable cost of living, job markets, and desirable climates.
In contrast, Southern metros like Greenville, SC, Memphis, TN, and Augusta, GA, are seeing SFRs stay on the market much longer than before, potentially indicating an oversupply in those areas.
Bigger Picture
The report concludes that rentals remain a desirable option for many, offering flexibility in a time of economic uncertainty while avoiding the financial burdens of homeownership.
However, the extra days SFRs are spending on the market could signal long-term challenges ahead in certain regions, particularly the South.
