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, including more volatile interest rates and stricter lending criteria since 2007’s housing crash.
In conducting their analysis, CBRE assumed that buying and renting costs tend to move in sync over time but can diverge in short periods where home sales prices fall while rents continue upward trajectory. The NAR reported median price for sale homes fell 0.9%, which was first decline seen since 2017; however material prices are on rise according Marcus & Millichap’s June 2023 report . Mortgage rates are expected ease somewhat yet supply constrained markets such as Boston may not benefit from additional development activity increasing pool of renters instead . This could create tailwinds for rents medium – long term , according CBRE analysts’ conclusion
