Many are turning to the rental market for relief as would-be buyers face the grim reality of rising mortgage rates and stagnant housing supply levels.

In Houston, single-family home rentals rose 24.8% year over year in May, according to the Houston Association of REALTORS® (HAR) May 2022 Rental Market Update.

Along with that surge was a significant increase in rent prices. Houston’s average rent shot up 11% last month to an all-time high of $2,239, with a total of 3,407 leases signed versus 2,761 in May 2021.

New listings of single-family rentals increased by 28.6%, adding to the robust supply of units for consumers who may have grown weary of the aggressive sales market. Days-on-market, or the number of days it took to lease a home, increased from 22 to 24.

“We are seeing a surge of activity in Houston’s rental market as prices of homes for sale and interest rates move beyond the reach of some consumers,” said HAR Chair Jennifer Wauhob. “For now, there appears to be an adequate supply of rental properties throughout the Houston market, but that could change if demand grows.”

The report noted that consumers showed less interest in townhome and condominium rentals in May. As a result, leases of those properties fell 6.7% year over year, with 616 units leased compared to 660 the previous May.

Townhome and condo rental prices rose 13.2% to $1,949, slightly below the record high of $1,854 in March. New listings were down 1%, and days-on-market dropped from 41 to 31 days.