The State of Single-Family Rentals Entering Summer 2022

Abstract

Combined with rising interest rates, aspiring homebuyers are pushed out of the market. Although rent prices are rising too, the ratio has been thrown off in the nation's pricier markets with returns dipping below 7%. Our Advice: Invest in Lower-Priced Markets Don't let profit margins disrupt your investing potential. The key is to invest in markets that are priced well relative to your location and current income. There will be a relief as rental rates catch up to rising property prices, but it may take a bit of time. Here's a breakdown of how median home prices in our markets compare as of 2022 according to NAR and realtor.com, with year-over-year percentage changes for further context. Trend #3 - Rising Rent Prices In some U.S. cities, rent rose as much as 40% last year. On average rates rose by 11.3%. While on one hand, rising rates are necessary to compensate for rising property prices, they pose a problem, too.