More people are choosing to rent homes in Houston due to uncertainty about interest rates and inflation. In May, there was a significant increase in demand for single-family rental homes, townhomes, and condominiums.
According to the Houston Association of Realtors' May 2023 Rental Market Update, the number of single-family home rentals went up by 17.4 percent compared to the previous year. The average rent remained stable at $2,255. A total of 3,987 leases were signed in May 2023, compared to 3,395 in May 2022.
New listings of single-family rentals also increased by 14.8 percent in May, indicating that there are enough homes available to meet the growing demand. The time it took to lease a home, known as "Days on Market," increased from 24 days to 34 days.
Cathy Treviño, the Chair of HAR, stated that Houston's rental market is still booming, suggesting that some potential homebuyers are hesitant to enter the sales market. However, as inflation cools down and housing prices become more moderate, she expects more renters to shift their focus towards homeownership.
In May, there was also increased interest in renting townhomes and condominiums. The number of leases for these properties rose by 20.7 percent compared to the previous year, with 736 units leased. The average lease price increased by 2.5 percent to $2,000. New listings for townhomes and condos were up by 23.5 percent, and the "Days on Market" increased from 31 to 37 days.
Looking back at May before the pandemic, there has been a significant increase in single-family home rentals by 18.3 percent. In May 2019, 3,370 leases were signed for single-family homes, and the average rent was $1,874. Currently, the average rent is 20.3 percent higher at $2,255. As for townhome and condominium rentals, there was a slight decrease of 1.8 percent compared to May 2023. In May 2019, 723 leases were signed, and the average rent was $1,666. The current average rent for townhomes and condos is 20.0 percent higher at $2,000.
Let's stay in touch! Subscribe to my weekly emails, and I'll send you real estate content of the market, pros vs. noobs, and free real estate investing information!
Reymundo Ramirez
REALTOR®
832.639.4884
meet-rey@kw.com
Resource from HAR.COM
If you enjoyed this post, please consider sharing it with others. 
items