Free World - September 15, 2021

Prices are soaring in the single-family rental market. ⁠⁠ ⁠⁠ Asking rents for ho…


Prices are soaring in the single-family rental market. ⁠⁠
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Asking rents for houses rose nearly 13% for the year to date through July, the highest annual increase in the past five years as tracked by real-estate data company Yardi Matrix, which analyzed professionally managed properties.⁠⁠
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The sharp rise partly reflects increasing demand from people who can’t afford to buy homes as well as city-dwellers who moved to the suburbs to rent during the pandemic. Meanwhile, the supply of new houses also continues to trail historical levels relative to population growth, and builders in some places remain constrained by zoning laws and available land.⁠⁠
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Apartment asking rents also have risen, but at a slower pace: 8.3% for the year to date through July, Yardi Matrix said. The difference partly reflects weaker demand in downtowns that lost population after Covid-19 hit, although those markets have rebounded in recent months.⁠⁠
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For renters hoping to step up and become single-family homeowners the news isn’t encouraging. Heated competition among home buyers this year led to for-sale home prices rising 23% on an annual basis last quarter.⁠⁠
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Deep-pocketed investors may have a hand in would-be buyer woes: one in six home sales went to an investor in the second quarter of 2021, according to Redfin. In Atlanta, Phoenix and Miami, it was one in four.⁠⁠
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Wall Street also is doubling down on home buying. Investors purchased $87 billion in homes in the first half of 2021, according to real-estate company Redfin, including a record 68,000 houses in the second quarter.⁠⁠
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