AirDNA’s Post

As of February 2024, rent growth in the U.S. is continuing to slow, but it’s still not reflected in consumer price index data. Asking rents increased 3.5% in February 2024 compared to the same time last year, according to Zillow’s rental report for February.

As of February 2024, rent growth in the U.S. is continuing to slow, but it’s still not reflected in consumer price index data. Asking rents increased 3.5% in February 2024 compared to the same time last year, according to Zillow’s rental report for February.

As of February 2024, rent growth in the U.S. is continuing to slow, but it’s still not reflected in consumer price index data. Asking rents increased 3.5% in February 2024 compared to the same time last year, according to Zillow’s rental report for February.

Rent growth has slowed from double-digit recent highs after pent-up demand caused by early pandemic lockdowns and record home prices sent rents soaring. Economists expect that decline will continue as more supply comes on line and tenants reach their limits. https://buff.ly/4cX20Tf

What is happening with your new lease rents and renewals? Note US Bureau of Labor & Statistics curve.

Spark has focused on resident retention, maintaining high occupancy levels - we are at 98% on our Greenville assets ! 🔥 - and have foregone pushing rents. And you know what? Our deals are doing great! Why? Fixed rate long term low leverage debt. Ample cash reserves - we store the excess cash in MMA accounts and our investors are earning close to 5% on that money. Local hands on operational team. We are LESS than 30 minutes from all of our assets. We have our finger in the pulse of the properties and the market. Economic and market cycles come and go. If one can’t handle a slow down or down turn. Sorry you aren’t investing and operating properly. #justsaying

The Spring Market is showing signs of thaw, with increased activity across most price points, especially properties priced under $600,000. Below are some key metrics we are following: Median Close Price in February - The Median Sale Price in NS in February was $411,000, up 8% from February 2023.  - The Median Sale Price in the HRM in February was $565,250, up 16.3% from February 2023 Total Sales - Total number of transactions NS in February was 605, up 9.6% year-over-year.  - Total number of transactions in HRM in February was 291, up 16.4% year-over-year. Days on Market - In NS, Properties are selling after a median of 18 Days on Market, down 5.3% year-over-year.  - In HRM, properties are selling after a median of 12 Days on Market, up 50% year-over-year. Percent of List Price - In NS, Properties are selling for an median of 97.6% of List Price, up 0.9% year-over-year. - In HRM, Properties are selling for a median of 99.4% of their List Price, up 0.6% year-over-year. In summary, prices are up across the province, especially in HRM, with housing prices as of February similar to their peak in Spring 2022 (peak was a median of $580,000 in HRM in April 2022). Pricing strategy amongst Sellers has generally changed since then, with more sellers opting to list closer to home value, rather than undervaluing to generate multiple offers. This has lead to home prices selling around asking on average, with some in-demand properties receiving multiple offers, especially in the sub $600,000 range. The market remains a Sellers market as supply and demand is still unbalanced in the region. The Bank of Canada held rates again on March 6th, with most economists expecting gradual cuts starting this summer, likely another boon to Sellers in the market. If you are looking for an experienced team to help navigate you through buying or selling in this market, contact Chris or Brady. Chris Walker (902) 499-6336 Brady Crewe (902) 476-9934 https://lnkd.in/eyZAatdQ

Check out what's happening to new lease rents in the CPI's rent survey (which is critical component of Shelter inflation estimates): The cold plunge in new lease rents is even deeper than what most private data sources are showing. The BLS says new lease rents dropped 4.7% year-over-year as of Q4, compared to most private sector data sources showing new lease rents closer to 0%. That's especially interesting because (theoretically) the BLS is tracking a larger swath of the rental market. While CPI Rent is still inflated due to renewals, we can see where this train is going. Rent/shelter is still pulling up headline inflation today due to data lags (and >1/3 weighting of CPI), but it'll very likely steadily cool through 2024. Reminder: New lease rents are the earliest indicator of rent direction -- and any effort to impact rents via fiscal policy will be first felt in that metric. New lease rents effectively serve as a cap on renewals. Today, renewal growth tops new lease growth due to "loss to lease" -- meaning that these expiring/renewing leases were previously priced below market, and they're being brought closer to market upon renewal. But there's only so much gas in the tank. On a nominal basis, as loss to lease shrinks, you can't keep pushing renewals upward. If you push nominal rents for renewals above new lease rents, you incentivize move-outs. Especially in today's environment, where a) new lease rents are highly transparent.... your residents can easily see your asking rents online and compare to their renewal letters, and b) rising vacancy means renters have a lot more options. So renewal rent growth will continue to trend down, except in unique cases (i.e. rent controlled units where price caps are also price floors). Lastly: This chart raises some questions on how the BLS is weighting new leases in its rent calculations... I've had difficulty tracking down that detail, but my wild guess is they're assuming ultra-low turnover and therefore underweighting new leases. Chart source: Axios. #rentalhousing #CPI #inflation

ICYMI: It’s a new year, but the rental market slowdown we saw at the end of last year is sticking around for at least the next couple of months. December saw rents fall 0.8% nationwide, marking the fifth consecutive month of decline. 📉 Today, the median monthly rent in the U.S. is down $45 (3.2%) from the mid-year peak last August. Seasonality plays a role in these market fluctuations, with rents typically bottoming out around the end of the year before starting to regain ground. Now is the time when renters have the most sway in lease negotiations, but it likely won’t be long before rents begin to trend up again. 💸 Read our January Rent Report → https://bit.ly/3pB0qxo

National #rentalrates down Year-over-Year. April rents fell 0.7% YoY - the 9th-straight decline. Despite this, nationwide rents are only 1.9% below their August 2022 peak. READ MORE HERE: https://bit.ly/3UXrpUP