Houston’s single-family rental market saw heightened activity in June as record-high pricing, rising interest rates and limited inventory continued to present challenges for hopeful buyers.
As a result, there was less interest in townhouse and condominium rentals. Nevertheless, rents were up across the board.
According to the Houston Association of REALTORS® June 2022 Rental Market Update, single-family home rentals jumped 19.3% year over year, with the average rent up 7.7% to an all-time high of $2,278. A total of 3,646 leases were signed versus 3,055 in June 2021.
New listings of single-family rentals surged 37%, providing a plentiful supply of units to consumers who chose to step out of the frenetic sales market. Days-on-market, or the actual number of days it took to lease a home, edged up from 20 days to 22.
“Single-family rentals continued to attract most of the consumers that have pulled out of the sale market, so our Realtor members that specialize in those properties had a very busy June,” said HAR Chair Jennifer Wauhob. “New listings of single-family and townhome/condo rentals rose significantly in June, meaning there are plenty of properties available to those still looking.”
Consumers showed less interest in townhome and condominium rentals in June. Leases of those properties fell 8.4% on the year, with 663 units leased compared to 724 last June. Rents rose 6.1% to $1,910, slightly below the record high of $1,951 reached in May of 2022. New listings shot up 13.7%, while days-on-market dropped from 36 to 29 days.