The housing market has seen an impressive recovery from the pandemic, with rents staying near their pre-pandemic levels and even increasing in certain markets due to the low availability of properties. According to Redfin Deputy Chief Economist Taylor Marr, this is because renters may see that the market shows few signs of weakening, even when renter demand softens. The housing market has been described as being ‘downside sticky’, which means that rents, which are often seen as the leading indicator of broader housing market trends, stay at high levels despite softening price tags.
Anchored by mortgage rates at an all-time low, the rental market is largely propped up by young people who prefer to rent, retirees in areas with active rental demand, and the increasing trend of corporate rental investors. With the number of renters potentially increasing due to high property prices, the rental market will likely remain steady despite a decrease in available housing.
Keep in mind:
• The housing market is described as ‘downside sticky’, meaning that rents remain near pre-pandemic levels and show few signs of weakening
• Rents, a leading indicator of broader housing market trends, remain high despite softening prices
• Mortgage rates are an all-time low, which boosts the rental market
• Young people, retirees, and corporate rental investors are increasing the demand for rentals
• The rental market will remain steady in spite of a decrease in available housing
You can read this full article at: https://www.housingwire.com/articles/rent-growth-is-slowing-but-prices-are-still-near-record-highs/(subscription required)
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