Amidst a drop in home sales, demand for single-family rentals soars. Houston’s single-family rental market is seeing a blazing rise of its own as summer blazes throughout Lone Star State. The month of July in Bayou City was the warmest on record for leasing as well as for temperatures.
Rental demands for Single-family increases (Source: KW New York City)
Tenants for Single-family House for Rent Soar High
In a published article from the Real Deal, the market reached new highs in July after making big gains in June, according to the Houston Association of Realtors, with single-family leasing activity rising 19% year over year. From 3,700 in July 2022, 4,400 leases were signed by tenants last month.
While single-family home sales fell by 13% in Houston in June, single-family rental rates rose by 16% year over year. Home sales in Space City decreased for the 16th consecutive month in July due to rising affordability and interest rate worries, while leasing activity increased.
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Single-family House Sales Decreases
The smallest reduction in single-family house sales since last year occurred in July when it fell by 9% year over year. The notion that inflated loan rates are here to stay is starting to gain traction with prospective purchasers. With seasonal influences, the Houston housing market has improved with each passing month, but consumers are still understandably cautious about the home-buying process, and many end up choosing to rent, according to Cathy Trevino, chairwoman of HAR.
Rental supply grows as demand does as well. In July, rental availability increased by about 12 percent, going from 4,900 to 5,500. Rent prices were also somewhat higher year over year, demonstrating why households keep choosing these affordable options. In July, the average rent jumped from $2,295 to $2,363 by $68 over the previous year.
Apart from detached homes, townhomes and condos were also in high demand, demonstrating how broad the rental housing market was. Townhome and condominium leases increased by 4%, from 689 units in July 2022 to 716 units in July 2023.
