Tuesday, November 22, 2022 / by Bryan Baylon
The supply of homes for sale is dropping now and no doubt this trend will continue until the start of 2023, at least. However the supply of homes for rent remains on a strong upward trend.
Active rental listings in the ARMLS database, excluding short-term rentals, now number over 4,000 for the first time since January 2015. This is 123% higher than the same time last year.
All dwelling types are affected by the huge increase in homes listed for rent, for example:
- single-family detached are up 128%
- townhomes are up 122%
- gemini/twin homes are up 110%
- apartment-style homes are up 99%
- patio homes are up 75%
With all this competition, the rents being asked have been falling for many months, which will please the Federal Reserve, but displease landlords. The average rent being asked for a single-family detached home is now $1.43 per square foot per month, down from $1.76 per square foot per month one year ago, a fall of 19%.
Apartments rents are much higher, because they tend to be located more centrally, but these are now trending down too. The average rent per square foot per month for apartments peaked at $2.26 last February but has declined since then to $1.86.
With interest rates in the mid to high sixes, the case for purchase over renting is weaker than it has been for a very long time, which exacerbates the demand problem that homes for sale are facing.
Market insights provided by the Cromford Report.