Rent Prices Hit Record High Across the Country

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Rent Prices Hit Record High Across the Country

by Alfred LauzonMay 25, 2022December 6, 2023

Irvine CA – Leading global property information, analytics, and data solutions company CoreLogic recently released its latest rent prices report.

Annual Rent Prices Hit Record Growth in March 2022

CoreLogic’s Single-Family Rent Index (SFRI) analyzes the movement of rent prices for single-family homes throughout major metro areas and the entire US of A. Based on its report, the company found that rent rates in March 2022 hit a record year-over-year growth rate of 13.6%.

The rapid growth of property prices and lack of affordable housing inventory are seen as the main culprits for such record numbers. And just like it was in recent months, the warmer regions generally recorded the highest rental cost growth, specifically Miami and Orlando. The growth rates in rent prices in the two markets were found to be two to three times the national rate.

Danielle Hale, the chief economist for Realtor.com, confirms that the surge in rental prices is caused by the mismatch between rising demand and rental supply. And because of the shortage of national housing inventory, would-be homebuyers are left with no other choice but to rent properties. Hale said, “Renters are being left with few options but to meet higher rents and, in some cases, even offer above [the landlord’s] asking price — whether they can afford to or not.”

However, there are telltale signs that rent prices are starting to cool down. April 2022 marks the third month that rental rate growth slowed down since hitting its peak in January. And while the annual rate slightly dropped in March with a 17% year-over-year growth, April’s increase was very significant. We saw the national median rent price go up to $1,827 a month, up by 16.7% from last year.

At the rate that things are going, most industry experts and analysts predict for the national median to hit $2,000 a month by August 2022.

Hale also said that rent is the biggest financial strain on Americans today even though inflation is driving expenses up across the board. As a result, studio apartment rentals (the most affordable option) grew at faster rates than single-family homes. While most studio units were exchanged for properties with bigger spaces at the pandemic’s onset, they have now become very popular for practical reasons.

How Should Real Estate Investors Respond?

Given the current market conditions, real estate investors can take advantage of the growing need by turning to other housing options and converting them into rental properties. While single-family homes are still the most sought-after property types, they can start by looking for a townhouse complex or duplex for sale in a neighborhood of their choice. They can even look for condo units and start a studio apartment for rent business in their chosen location.

As far as location is concerned, CoreLogic listed the top 20 markets that experienced the most year-over-year growth in single-family rent prices. Before investors start looking for income properties for sale in these markets, they should first know what the existing market conditions are like.

On top of the monthly rental rates (this goes for both traditional and vacation rental properties), investors should also consider what each market can offer in terms of cash on cash return and cap rate. Since the following markets already score high on price to rent ratio, investors are somehow assured that the people living in and looking at such markets are most likely to just rent property instead of buying one.

Mashvisor, a real estate website, maintains a large database that covers almost all markets in all 50 states. It’s been helping countless investors locate the right investment property by providing them with reliable information and accurate data, as well as investment tools to come up with near-perfect income projections.

To learn more about how Mashvisor can help you find profitable investment properties, schedule a demo.

Here is how the top 20 real estate markets are performing according to Mashvisor’s latest data. Because high rental income does not automatically mean the profit will be high as well, we included the metrics for both traditional and Airbnb rentals. Kindly take note that the ranking for the list below reflects the ranking found on CoreLogic’s report based on rent price increase:

1. Miami, FL

Median Property Price: $970,317
Average Price per Square Foot: $668
Days on Market: 116
Monthly Traditional Rental Income: $3,751
Traditional Cash on Cash Return: 2.09%
Traditional Cap Rate: 2.13%
Price to Rent Ratio: 22 (high)
Monthly Airbnb Rental Income: $3,962
Airbnb Cash on Cash Return: 1.75%
Airbnb Cap Rate: 1.80%
Airbnb Daily Rate: $275
Airbnb Occupancy Rate: 47%
Walk Score: 61

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2. Orlando, FL

Median Property Price: $449,831
Average Price per Square Foot: $269
Days on Market: 57
Monthly Traditional Rental Income: $1,846
Traditional Cash on Cash Return: 2.76%
Traditional Cap Rate: 2.85%
Price to Rent Ratio: 20 (high)
Monthly Airbnb Rental Income: $2,912
Airbnb Cash on Cash Return: 3.41%
Airbnb Cap Rate: 3.51%
Airbnb Daily Rate: $118
Airbnb Occupancy Rate: 57%
Walk Score: 42

3. Phoenix, AZ

Median Property Price: $648,439
Average Price per Square Foot: $372
Days on Market: 29
Monthly Traditional Rental Income: $1,973
Traditional Cash on Cash Return: 1.94%
Traditional Cap Rate: 1.98%
Price to Rent Ratio: 27 (high)
Monthly Airbnb Rental Income: $4,096
Airbnb Cash on Cash Return: 4.38%
Airbnb Cap Rate: 4.46%
Airbnb Daily Rate: $217
Airbnb Occupancy Rate: 64%
Walk Score: 28

4. Las Vegas, NV

Median Property Price: $611,929
Average Price per Square Foot: $383
Days on Market: 63
Monthly Traditional Rental Income: $1,690
Traditional Cash on Cash Return: 1.51%
Traditional Cap Rate: 1.55%
Price to Rent Ratio: 30 (high)
Monthly Airbnb Rental Income: $3,340
Airbnb Cash on Cash Return: 3.53%
Airbnb Cap Rate: 3.62%
Airbnb Daily Rate: $210
Airbnb Occupancy Rate: 60%
Walk Score: 36

5. San Diego, CA

Median Property Price: $1,072,138
Average Price per Square Foot: $802
Days on Market: 40
Monthly Traditional Rental Income: $2,895
Traditional Cash on Cash Return: 1.34%
Traditional Cap Rate: 1.36%
Price to Rent Ratio: 31 (high)
Monthly Airbnb Rental Income: $4,348
Airbnb Cash on Cash Return: 2.14%
Airbnb Cap Rate: 2.16%
Airbnb Daily Rate: $220
Airbnb Occupancy Rate: 60%
Walk Score: 55

6. Austin, TX

Median Property Price: $1,001,757
Average Price per Square Foot: $576
Days on Market: 48
Monthly Traditional Rental Income: $2,319
Traditional Cash on Cash Return: 0.51%
Traditional Cap Rate: 0.53%
Price to Rent Ratio: 36 (high)
Monthly Airbnb Rental Income: $4,679
Airbnb Cash on Cash Return: 2.51%
Airbnb Cap Rate: 2.55%
Airbnb Daily Rate: $258
Airbnb Occupancy Rate: 54%
Walk Score: 50

7. Dallas, TX

Median Property Price: $657,790
Average Price per Square Foot: $318
Days on Market: 109
Monthly Traditional Rental Income: $2,376
Traditional Cash on Cash Return: 1.38%
Traditional Cap Rate: 1.42%
Price to Rent Ratio: 23 (high)
Monthly Airbnb Rental Income: $3,150
Airbnb Cash on Cash Return: 1.73%
Airbnb Cap Rate: 1.78%
Airbnb Daily Rate: $151
Airbnb Occupancy Rate: 51%
Walk Score: 46

8. Boston, MA

Median Property Price: $1,063,363
Average Price per Square Foot: $1,012
Days on Market: 71
Monthly Traditional Rental Income: $2,592
Traditional Cash on Cash Return: 1.06%
Traditional Cap Rate: 1.08%
Price to Rent Ratio: 34 (high)
Monthly Airbnb Rental Income: $3,880
Airbnb Cash on Cash Return: 1.71%
Airbnb Cap Rate: 1.74%
Airbnb Daily Rate: $197
Airbnb Occupancy Rate: 62%
Walk Score: 84

9. Atlanta, GA

Median Property Price: $606,225
Average Price per Square Foot: $420
Days on Market: 66
Monthly Traditional Rental Income: $2,384
Traditional Cash on Cash Return: 2.45%
Traditional Cap Rate: 2.51%
Price to Rent Ratio: 21 (high)
Monthly Airbnb Rental Income: $2,052
Airbnb Cash on Cash Return: 0.71%
Airbnb Cap Rate: 0.74%
Airbnb Daily Rate: $141
Airbnb Occupancy Rate: 40%
Walk Score: 43

10. Tucson, AZ

Median Property Price: $470,627
Average Price per Square Foot: $297
Days on Market: 48
Monthly Traditional Rental Income: $1,438
Traditional Cash on Cash Return: 1.99%
Traditional Cap Rate: 2.04%
Price to Rent Ratio: 27 (high)
Monthly Airbnb Rental Income: $3,103
Airbnb Cash on Cash Return: 4.82%
Airbnb Cap Rate: 4.94%
Airbnb Daily Rate: $121
Airbnb Occupancy Rate: 68%
Walk Score: 42

11. Seattle, WA

Median Property Price: $668,391
Average Price per Square Foot: $607
Days on Market: 43
Monthly Traditional Rental Income: $2,160
Traditional Cash on Cash Return: 1.78%
Traditional Cap Rate: 1.81%
Price to Rent Ratio: 26 (high)
Monthly Airbnb Rental Income: $3,320
Airbnb Cash on Cash Return: 2.74%
Airbnb Cap Rate: 2.79%
Airbnb Daily Rate: $160
Airbnb Occupancy Rate: 66%
Walk Score: 66

The Seattle-Bellevue-Everett metropolitan area recorded a double-digit single-family year-over-year rent change in March 2022.

12. Charlotte, NC

Median Property Price: $555,972
Average Price per Square Foot: $321
Days on Market: 85
Monthly Traditional Rental Income: $1,969
Traditional Cash on Cash Return: 1.85%
Traditional Cap Rate: 1.89%
Price to Rent Ratio: 24 (high)
Monthly Airbnb Rental Income: $2,456
Airbnb Cash on Cash Return: 1.84%
Airbnb Cap Rate: 1.88%
Airbnb Daily Rate: $140
Airbnb Occupancy Rate: 52%
Walk Score: 35

13. Chicago, IL

Median Property Price: $574,284
Average Price per Square Foot: $359
Days on Market: 52
Monthly Traditional Rental Income: $2,380
Traditional Cash on Cash Return: 1.15%
Traditional Cap Rate: 1.19%
Price to Rent Ratio: 20 (high)
Monthly Airbnb Rental Income: $3,086
Airbnb Cash on Cash Return: 1.24%
Airbnb Cap Rate: 1.28%
Airbnb Daily Rate: $206
Airbnb Occupancy Rate: 51%
Walk Score: 65

14. Los Angeles, CA

Median Property Price: $1,416,111
Average Price per Square Foot: $1,277
Days on Market: 66
Monthly Traditional Rental Income: $4,378
Traditional Cash on Cash Return: 1.65%
Traditional Cap Rate: 1.66%
Price to Rent Ratio: 27 (high)
Monthly Airbnb Rental Income: $5,215
Airbnb Cash on Cash Return: 1.77%
Airbnb Cap Rate: 1.79%
Airbnb Daily Rate: $193
Airbnb Occupancy Rate: 65%
Walk Score: 55

15. Houston, TX

Median Property Price: $602,877
Average Price per Square Foot: $331
Days on Market: 200
Monthly Traditional Rental Income: $2,087
Traditional Cash on Cash Return: 1.87%
Traditional Cap Rate: 1.92%
Price to Rent Ratio: 24 (high)
Monthly Airbnb Rental Income: $2,179
Airbnb Cash on Cash Return: 0.86%
Airbnb Cap Rate: 0.88%
Airbnb Daily Rate: $135
Airbnb Occupancy Rate: 43%
Walk Score: 42

16. Philadelphia, PA

Median Property Price: $628,003
Average Price per Square Foot: $378
Days on Market: 90
Monthly Traditional Rental Income: $1,916
Traditional Cash on Cash Return: 2.64%
Traditional Cap Rate: 2.73%
Price to Rent Ratio: 27 (high)
Monthly Airbnb Rental Income: $2,691
Airbnb Cash on Cash Return: 3.28%
Airbnb Cap Rate: 3.39%
Airbnb Daily Rate: $138
Airbnb Occupancy Rate: 53%
Walk Score: 63

17. Honolulu, HI

Median Property Price: $871,840
Average Price per Square Foot: $895
Days on Market: 88
Monthly Traditional Rental Income: $2,266
Traditional Cash on Cash Return: 2.40%
Traditional Cap Rate: 2.44%
Price to Rent Ratio: 32 (high)
Monthly Airbnb Rental Income: $4,315
Airbnb Cash on Cash Return: 4.80%
Airbnb Cap Rate: 4.89%
Airbnb Daily Rate: $165
Airbnb Occupancy Rate: 71%
Walk Score: 46

18. New York, NY

Median Property Price: $1,369,759
Average Price per Square Foot: $1,478
Days on Market: 177
Monthly Traditional Rental Income: $3,668
Traditional Cash on Cash Return: 1.21%
Traditional Cap Rate: 1.22%
Price to Rent Ratio: 31 (high)
Monthly Airbnb Rental Income: $4,328
Airbnb Cash on Cash Return: 1.01%
Airbnb Cap Rate: 1.03%
Airbnb Daily Rate: $191
Airbnb Occupancy Rate: 66%
Walk Score: 62

19. Washington, DC

Median Property Price: $741,953
Average Price per Square Foot: $617
Days on Market: 115
Monthly Traditional Rental Income: $2,485
Traditional Cash on Cash Return: 1.92%
Traditional Cap Rate: 1.96%
Price to Rent Ratio: 25 (high)
Monthly Airbnb Rental Income: $3,198
Airbnb Cash on Cash Return: 1.95%
Airbnb Cap Rate: 1.99%
Airbnb Daily Rate: $153
Airbnb Occupancy Rate: 60%
Walk Score: 60

20. St. Louis, MO

Median Property Price: $375,939
Average Price per Square Foot: $180
Days on Market: 70
Monthly Traditional Rental Income: $1,369
Traditional Cash on Cash Return: 1.90%
Traditional Cap Rate: 1.97%
Price to Rent Ratio: 23 (high)
Monthly Airbnb Rental Income: $2,492
Airbnb Cash on Cash Return: 4.15%
Airbnb Cap Rate: 4.30%
Airbnb Daily Rate: $110
Airbnb Occupancy Rate: 64%
Walk Score: 58

Wrapping It Up

With record-high rent prices nowadays, investors can help make a decent return on their investment and help meet the national housing demand by investing in rental properties. When looking for the right property, it is important to be able to access highly accurate market data and the best real estate investing tools. Fortunately for investors, Mashvisor is a one-stop real estate shop that provides both.

To access Mashvisor’s real estate investment tools, click here to sign up for a 7-day free trial, followed by 15% off for life.

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