Good News For Landlords

While home sales slow with mortgage rates surging to a 15 year high, rents are still increasing.

RealPage reports that since the beginning of 2022 rents have increased 21.9% nationally to an average of $1,510.

Despite the rapid increase in new lease rates, it is well below the 33% of income limit that is generally accepted as affordable.

Actually, for eight straight years rents until 2019 rent affordability was trending in the opposite direction.

Currently rents sit at about 23% of income leaving a lot of room for growth before hitting the affordability ceiling.

MARKET OBSERVATIONS

• NAR reports home resales in August decreased by 0.4% month over month and 19.9% YOY
  Home resales drop below pre-pandemic levels
  Core CPI increased to 6.6% in September, a 40 year high
  Mortgage rates hit 20 year high
  Average 30yr fixed mortgage rates up slightly to 6.92%

Originally published on Invested Agents.