The Corelogic MarketPulse Report for November has plenty of good data, including several references to dwindling supplies of homes in many parts of the country. The damand for single family rentals has been particularly strong in several of the harder-hit states where prices have recently started recovering. Not surprisingly, Houston Texas also shows up on the list for areas where strong demand for rentals has caused home prices to move higher. Some highlights from the report:
- While the housing market is now a significant contributing factor to economic growth, it will take much more time before the housing market sees a full recovery. Short- to medium-term factors driving this recovery are fueled by an investor-based demand for rental properties, combined with rising home prices and a decline in the number of under-equitied households. A full housing recovery will be driven by a healthier economy, fundamental gains in income growth and consumption, and an ongoing increase in home prices.
- The single-family rental market remained very active this past summer, with increases in demand, tightening inventory and rising rents.
- Nationally, rental leasing volumes were up sequentially every month during the last two years. Over this same time period, an average of 42,000 rentals was added to the stock of rental homes each month. This is more than twice the average flow that the U.S. was experiencing prior to the housing recession.