Market Report - August 2021
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 were down 9.1 percent to 643. Pending Sales decreased 22.9 percent to 590. Inventory shrank 54.6 percent to 717 units.
Prices moved higher as Median Sales Price was up 7.2 percent to $403,180. Days on Market decreased 43.3 percent to 89 days. Months Supply of Inventory was down 63.3 percent to 1.1 months, indicating that demand increased relative to supply.
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.