While rental prices in the bustling metropolitan areas of New York City have squeezed buyers and tenants out of the market, other housing markets across the country like Houston are seeing significant gains in sales.
In New York City, the rental market is seeing sales plateau as fewer tenants are finding apartments and affordable properties, New York Daily News reported. Rental prices in Manhattan have increased as competition to fill up space has heated up. Meanwhile, Brooklyn and Queens has seen growth in demand for apartments as tenants are able to afford the rent in these areas.
“I think the prognosis is a tight rental market for the foreseeable future,” said Jonathan Miller, the appraiser behind Douglas Elliman’s report, according to New York Daily News. “The only way for us to see any relief in rentals is for us to see credit ease significantly for purchasing and I don’t see that happening any time soon.”
Houston housing market sees record-level sales volume
Compared to the market stagnating in areas like New York City, the rental market in more affordable parts of the country like Houston could offer better choices for investors. According to a report by the Houston Association of Realtors, sales volume in July reached record levels – the second highest monthly total of all time – with 9,250 units for all property types. This represents a 0.7 percent gain year over year.
Bolstered by a three-month supply, the real estate market in Houston experienced a 1 percent rise in single-family home sales to 7,769 units in July compared to the same period last year.
“July did not bring the most dramatic sales performance we’ve ever seen, but the numbers are headed in the right direction,” said Chaille Ralph, chair of HAR. “We are beginning to see a steady resupply of housing inventory with proportionate sales and pricing gains, all of which translates to a healthier real estate market.”
Inventory has also grown for single-family properties, with listings increasing to 10,390 properties, up 5.5 percent. The average price of single-family homes sold has also gained 6.4 percent from the previous year, which could mean more incentive for sellers to put their houses on the market. With the increase in price, and still strict lending standards, properties might be actually less affordable for first time buyers, which could lead to a increased need in single family rental properties.
Additionally, the total dollar volume for properties sold in Houston reached $2.4 billion in July, indicating that the area’s housing market is gaining strength. Buyers of Houston investment properties could look to buy up homes to meet an increasing demand for rentals.