Long Real Estate | Real Estate Market Update: October 2021
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Real Estate Market Update: October 2021

The booming U.S. housing market has spilled over to the rental market, which has seen demand for apartment and single-family rentals skyrocket this year, as high sales prices and an inadequate supply of available housing have forced many prospective buyers to rent for the foreseeable future.

 

 

Increased demand for housing, along with an improving economy, has competition for rental units soaring, and landlords are taking note, with the national median rent increasing 11.4% in 2021 so far, according to Apartment List.

 

Closed Sales increased 6.3 percent for existing homes but decreased 33.2 percent for new homes. Pending sales increased 1.3 percent for existing homes but decreased 63.9 percent for new homes. Inventory decreased 20.4 percent for existing homes and 27.5 percent for new homes.

 

The Median Sales Price was up 8.6 percent to $225,000 for existing homes and 12.2 percent to $443,027 for new homes. Days on Markt decreased 44.4 percent for existing homes and 60 percent for new homes. Supply decreased 28.6 percent for existing homes and 30.3 percent for new homes.

 

In new construction, home builders continue to struggle to meet buyer demand, as housing starts nationwide dropped seven percent last month, according to the Commerce Department. Single-family home construction declined 4.5 percent, and multi-family home construction which includes condos and apartment buildings, was also down, falling by thirteen percent Labor shortages, rising material costs, and supply-chain setbacks continue to challenge builders, with some projects temporarily paused due to availability and cost of materials.