After years of skyrocketing prices, the single-family housing market is starting to cool, reports Lynn Pollack in Globe St. “And while ‘significant price collapses’ are not likely due to ongoing supply-demand imbalances, the recalibrating single-family home market will continue to benefit the multifamily asset class,” Pollack continues.
After rising for 24 straight months, the average price of existing single-family homes is finally decreasing as the buying frenzy fizzles out and mortgage rates rise. According to Pollack, “the problems of the single-family housing market are almost universally regarded as a boon for multifamily, as millennials looking to form households will likely turn to the higher-end rental market as an alternative.”
This isn’t necessarily good news for renters, however, as the average rent rose to over $2,000 in June for the first time ever. “The average Class A and Class B effective rents in the U.S. grew by about 17 percent year-over-year through June, while Class C apartment rents climbed by 12.3 percent over the same period.”
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https://www.planetizen.com/news/2022/09/118653-single-family-home-prices-cool-rents-continue-rise
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