According to the Houston Association of REALTORS®, limited inventory and skyrocketing prices have forced many hopeful homebuyers to instead rent single-family homes.
HAR’s July 2022 Rental Market Update revealed that single-family home rentals have risen 14.5% since 2021, with a total of 3,706 leases signed in 2022.
The Houston market has also seen an increase in new listings of single-family homes for rent, creating more options for people who have put their homebuying dreams on hold. However, the average rent of these homes has risen to $2,296, a 6.2% increase over last year.
HAR Chair Jennifer Wauhob predicts that rising rental prices may cause consumers to shift back towards for-sale properties in the future, but in the meantime single-family homes have become “Houston’s most accessible housing commodity.”
“The supply of rental homes is plentiful, however rental prices are steadily climbing, so it will be interesting to see at what point the pendulum may swing back in favor of for-sale homes,” Wauhob added.
Additionally, condominium and townhome rentals have gone down since July of 2021, though the average length of time on the market for these types of rentals has decreased from 34 to 24 days.