Bolstered by unrelenting demand amid a growing housing shortage, prices for single-family rental homes are reaching record highs in nearly every major market across the country, but the Sun Belt is recording the most significant gains, according to CNBC. Single-family rents grew a record 12.6% year-over-year in January, and cities like Miami, Orlando, and Phoenix are seeing the brunt of the nation’s growth with price increases of 38.6%, 19.9%, and 18.9%, respectively.
January marked the tenth consecutive month of soaring rental prices across the U.S., and more gains are still to come as unsuccessful homebuyers seek out a slight boost in build-for-rent inventory in the rental market.
“Single-family-rent growth extended its record-breaking price growth streak to 10 consecutive months in January,” said Molly Boesel, principal economist at CoreLogic.
Demand for single-family rentals is so strong partly because the market for potential homebuyers is so tough. Not only are home prices up 19% from a year ago, but the number of listings are still historically low. That means homes that are listed often sell in a matter of weeks, if not days.
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