While the coronavirus pandemic has created some “softness” in the rental market, rental growth so far in 2021 has been the fastest on record for data analysts at Apartment List, which released its national rent report for June.

Nationally and in many cities across the country, rents are now above where they would have been had rent growth not been disrupted by the pandemic, according to the report.

Authors Chris Salviati, Igor popov, and Rob warnock add that in markets such as San Francisco and New York where so-called “pandemic pricing” is still in effect, “prices have taken a turn and are now rebounding”.

Specifically, they report that their national index rose 2.3% in June, continuing the trend of rapid price growth since the start of the year. So far in 2021, rental prices have increased 9.2%. For the sake of context, in previous years, growth from January to June is typically only 2-3%, they say.

There are still many variations by region, the authors note and detail in the report on ApartmentList.com.

They report that rental inventory across the country, like the general supply of housing, remains limited, and as vaccine distribution continues to gain momentum, they say, “we could see the release of. pent-up demand from tenants who had delayed moves due to While last year’s peak moving season was interrupted by the pandemic, this year’s seasonal peak appears to be making up for lost time.

Investors continue to take a keen interest in the single-family rental and rental construction markets as home prices continue to accelerate, competition remains fierce and home ownership remains out of reach for many. young adults and first-time buyers.

That said, a study by HireAHelper.com showed that mortgage payments can be lower than rent payments, on average, regardless of utilities and property taxes. The study takes an in-depth look at what residents of various metropolitan areas should consider before deciding to rent or buy a home.

“Owning a home seems to be more expensive than renting, and not just as an initial investment, but also on an ongoing basis,” notes which summarizes the study.

“With utilities, taxes, and other typical costs included, the average cost of ownership in the United States is around $ 1,556 per month, while renting is $ 1,143 per month,” notes Kuprivanov. “As true as this may be in nominal terms, there is one key aspect to consider in deciding which one is more affordable: household income.”

This study only showed two metropolitan areas where renting was found to be more affordable than owning. Yet many hurdles still exist for promising buyers, according to CoreLogic’s latest home price index.

“First-time buyers are hitting a wall in many places across the country as the pace of rising home prices outweighs the benefits of falling borrowing costs. Young people and first-time buyers, including millennials, face the challenge of having enough savings for a down payment, closing costs and cash reserves, ”said Franck Martell, President and CEO of CoreLogic commenting on the company’s monthly index. “As we look at the 2021 balance, we expect price increases to continue, which could very well push potential buyers out of the market in many areas and slow home price growth over the next decade. next year. “

A report from Apartment List earlier this year showed that millennials year after year are less interested in homeownership. In 2018, 11% never considered themselves to be owners. In 2019, that number rose to 12%. In 2020, the percentage of millennials who never saw themselves buying a home rose to 18%.


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