According to the report, single-family home rentals increased by 24.8% year over year to 3,406 leases in May, up from 2,731 leases the year prior, according to the report.
“We are seeing a surge of activity in Houston’s rental market as prices of homes for sale and interest rates move beyond the reach of some consumers,” HAR Chair Jennifer Wauhob, with Better Homes and Gardens Real Estate Gary Greene, said in the announcement. “For now, there appears to be an adequate supply of rental properties throughout the Houston market, but that could change if demand grows.”
The rental market was able to meet the demand of new renters, with a 28.6% increase in new single-family rentals at 4,156 properties, up from the 3,231 listings in May 2021, according to the report. Days on the market, another indicator of how demand compares to supply, also increased year over year by two days to 24 days.
The increased demand in the rental market comes as HAR reported a 16% increase in median single-family home values for the month of May.
In that report, HAR revealed that while home inventory across the Houston market had increased to a supply of 1.6 months—the highest since the start of the year—a 30-year fixed-rate mortgage of 6.06% had slightly dulled demand.
Still, while renters showed interest in single-family rentals, they displayed less enthusiasm about renting condominiums and townhomes, according to the report.
Leases of these properties fell 6.7% year over year in May, down to 616 units leased compared to 660 in May 2021. This came while rents in these properties rose 13.2% to $1,949 per month.
