HouseCanary, Inc. (“HouseCanary”), a national brokerage known for its real estate valuation accuracy, today released its latest National Rental Report, showing that Single-Family Rental (SFR) inventory continues to expand with a 26.7% surge in Q4 2023 compared to the previous year.
As with preceding quarters, the continued inventory influx resulted in an expected Days on Market surge of 26.3% compared to Q4 2022. Given the high inventory levels, Q4 2023 witnessed a marginal increase in median SFR prices of 1.5% compared to the previous year.
Chris Stroud, Co-founder and Chief of Research at HouseCanary, commented: “Looking back at Q3, only four of HouseCanary’s tracked MSAs saw inventory decreases on a year-over-year basis. This quarter, despite inventory remaining at historically high levels, some MSAs, notably Palm Bay-Melbourne-Titusville, FL, are seeing significant pullback in average weekly inventory, indicating previous inventory expansion is catching up with the market.”
Brandon Lwowski, Senior Director of Research at HouseCanary, added: “As we have noted throughout the year, median rental prices have seemingly reached their peak. With average Days on Market increasing at a high rate and prices staying relatively stable, there is potential for pullback in the rental market. However, with the Federal Reserve’s latest decision to keep rates steady, the rental market is going to remain a popular option for many would-be home buyers.”
Following a thorough analysis of the aggregated data, HouseCanary’s report identified the following key findings about the rental market for single-family detached listings in the fourth quarter of 2023:
- Available-for-rent inventory nationwide shoots up: In Q4 2023 available-for-rent inventory continued to soar +26.7% compared to the previous year, as a result this quarter only saw marginal year-over-year increases in median SFR prices at just 1.5%.
- Continued inventory influx results in days on market surge: The average days on market experienced a significant surge of +26.3% year-over-year.
- Notable MSAs Signal Potential Inventory Easing: While remaining elevated historically, MSAs including Palm Bay-Melbourne-Titusville, FL have seen significant pullback with inventory dropping -50% year-over-year.
- Florida's Rental Rollercoaster: Punta Gorda, FL experienced considerable average rental price drops, with this quarter’s average price dropping -25.8% versus the same period last year.
The full report with all additional findings can be viewed here.
Methodology
HouseCanary’s Q4 Rental Report compares insights from Q4 2022 and Q4 2023 to explore trends shaping the U.S. rental market for single-family detached listings, including price and supply shifts across 46 states and 204 metropolitan statistical areas (“MSAs”) with the most rental market activity. The findings in today’s report represent an aggregation and summary of all single-family detached listing records between October 2023 and December 2023.
This report is run at a quarterly cadence in order to capture the quick changes that can occur in a volatile market that has been experiencing record-level growth and prices over recent years.
While the Rental Report is a nationwide snapshot of the health of the market, detailed rental statistics are available for 204 MSAs for SFR investors looking for insights into specific markets.
About HouseCanary
Founded in 2013, national real estate brokerage HouseCanary empowers consumers, financial institutions, investors, and mortgage lenders, with industry-leading services including valuations, forecasts, and transactions. These clients trust HouseCanary to fuel acquisition, underwriting, portfolio management, and more. Learn more at www.housecanary.com.
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