Rents for single-family homes 41% higher than prepandemic

Rents for single-family homes have risen 41% over prepandemic prices, with multifamily rents rising 26% in the same time frame.

Single-family homes cost 20% more to rent than multifamily apartments, the largest difference on record.

Although relatively high mortgage rates are tamping down on buyer demand, construction of multifamily buildings has kept rent growth stable, while detached, single-family homes continue to see rents increase.

The median age of renters has also increased to 42, up from 33 just three years ago.

The bottom line is that if you or anyone you know is renting and considering buying, the data shows just how much more expensive renting has become. Not only is it more expensive, renters are missing out on the massive equity gains my buyers have been enjoying the last several years.

While buying may seem daunting to first time buyers, I work with many of these buyers on a monthly basis. I'm happy to sit down and speak with anyone who is tired of the rental increases.

Mid-January Market Update

In my business, I have seen a strong uptick in buyer interest in the last two weeks. Buyers, who just a few short weeks ago didn't have much competition, suddenly often find themselves once again competing against multiple bidders. This change happened suddenly and across multiple cities (Avon, Cleveland Heights, and Cuyahoga Falls) and across different price points ($225,000, $240,000, & $615,000).

It's not uncommon for a lull in the month of December, as often buyers and sellers alike prefer to take a break for the holiday season. However, the turnaround on my end seemed to change overnight. I've had more referrals from clients needing to buy and sell in the last 2.5 weeks than I've had in the last 2.5 months (thank you everyone for the referrals!).

The solution for buyers is the same that's been working ever since we entered into this seller's market. Let me know if you'd like me to go over this with you:

For sellers. the biggest pitfall I'm still seeing a lot of overpriced homes. While homes that are priced appropriately are selling quickly for solid numbers, there are still many stale listings that have been listed for 2-6 months out there.

I toured a lovely property in Painesville this week that has been up 7 months. The thought any buyer has when they see those days on market are: 1.) What is wrong with this house (there must be something!) 2.) How low of a lowball offer should we submit?

I recommend basing a listing price on sales data. Hoping to sell for dramatically more than a house is worth usually ends poorly for those who attempt it.