To the surprise of many, the general rise in rental home prices is not actually reflective of the entire market. This year’s overall rent increases are coming solely from single-family rentals, while apartment home rental prices are actually decreasing. The price of apartments nationwide has actually decreased by 2.3% since January.
According to Jonas Bordo, CEO & Co-Founder of Dwellsy, “Due to COVID19, renters want more space and control over access to their homes, and this has led to substantial new demand for single family rentals. The supply of these properties is relatively unchanged–maybe even down, due to the hot single-family sales market–so rent for this asset type has gone through the roof in 2021.” Dwellsy’s data shows that single family rental prices are up by 15%, driving an overall increase in median rent by 9.6%.
While the national numbers are surprising, local numbers vary dramatically between local markets. For example, Santa Rosa, CA in Sonoma County, the rent price of single-family homes went up 10% month over month, while the rent price for apartments was down 3%. This exemplifies the national market trend of single-family homes driving up the overall price of rentals. However, in Los Angeles, CA, we noticed the complete opposite trend, where apartments are in such high demand that their prices are skyrocketing, while the single-family home rentals in the city decrease in price. The median rental price in LA has increased 7% since January.