NVBR Market Reports are sponsored
by the North Country Federal Credit Union
The booming U.S. housing market has spilled over to the rental market, which has seen demand for apartment and single-family rentals skyrocket this year, as high sales prices and an inadequate supply of available housing have forced many prospective buyers to rent for the foreseeable future. Increased demand for housing, along with an improving economy, has competition for rental units soaring, and landlords are taking note, with the national median rent increasing 11.4% in 2021 so far, according to Apartment List. New Listings decreased 21.7 percent for single-family homes and 15.2 percent for townhouse-condo properties. Pending Sales decreased 4.5 percent for single-family homes and 16.1 percent for townhouse-condo properties. Inventory decreased 37.3 percent for single-family homes and 36.5 percent for townhouse-condo properties. The Median Sales Price was up 23.4 percent to $412,000 for single-family homes and 1.6 percent to $249,000 for townhouse-condo properties. Days on Market decreased 57.1 percent for single-family homes and 31.4 percent for townhouse-condo properties. Months Supply of Inventory decreased 42.3 percent for single-family homes and 38.5 percent for townhouse-condo properties.
In new construction, home builders continue to struggle to meet buyer demand, as housing starts nationwide dropped 7% last month, according to the Commerce Department. Single-family home construction declined 4.5%, and multi-family home construction, which includes condos and apartment buildings, was also down, falling by 13%. Labor shortages, rising material costs, and supply-chain setbacks continue to challenge builders, with some projects temporarily paused due to availability and cost of materials.
