According to the National Association of Realtors, the number of active for-sale homes in June 2023 increased by 7.1% on a year-over-year basis while unsold homes decreased by 4.6%. Home sellers overall tended to be less active than they were the year before. A report from CBRE noted that rental housing could be a likely beneficiary due to higher costs associated with homebuying and supply constraints in certain markets like Boston, MA.
The last time renting was less expensive than buying was prior to 2007’s housing crash when interest rates and lending criteria were much lower compared today’s market dealing with hot demand from 2020 – 2022 as well as surging mortgage costs. The NAR release reported that median prices of for sale homes fell 0.9%, marking their first decline since 2017; meanwhile material prices are rising according Marcus & Millichap’s June 2023 report . Mortgage rates are expected ease somewhat over coming quarters potentially lowering cost capital yet “supply constrained markets, such as Boston, are unlikely benefit more for sale development activity” according CBRE analysts forecast which will increase pool renters . Rental market may continue facing economic uncertainties but “stubbornly high for sale costs will at least tailwind rents medium longer term,” concluded CBRE analysts
