Continued increases in mortgage rates and a 9.9% increase in average single-family home prices drove buyers back to the rental market as average rental prices reached $2,296 per month, a 6.2% increase in the last year, according to the press release.
“For consumers in need of a roof over their head, Houston’s most accessible housing commodity right now appears to be the single-family rental home,” HAR Chair Jennifer Wauhob said in the release.
In June, single-family home rentals increased by nearly 19.3% year over year to 3,646 rentals, according to the report. Single-family home rentals increased by 14.5% year over year to 3,706 in July.
The rental market was able to replenish the high volume of closures as new listings rose 26.5% year over year to 4,896 new listings in June, according to the report.
The average price of townhomes and condominiums increased 9.4% to $1,925 per month, according to the report. The increase came despite the number of closed listings falling 5.4% to 695 rentals in July.