The days of rapid, COVID-era rental appreciation—when rents climbed sharply in a matter of months—are behind us. During that period, our average days on market typically ranged between 10 and 15 days. Today, the landscape looks significantly different.
In 2020, it wasn’t uncommon for our area to have only 50 or so single-family rentals available at any given time. As of today, Zillow shows approximately 230 active single-family rental listings. Within our own portfolio, we currently have 28 available homes out of the 622 properties we manage.
What’s Driving the Shift?
Several factors are contributing to the increased rental inventory, but two stand out:
1. New Large-Scale Apartment Construction
Over the past five years, the area has seen substantial growth in large apartment complexes. This surge in new units introduces additional competition for single-family rentals—especially as many of these brand-new communities offer aggressive move-in specials, sometimes providing up to three months free rent.
2. Low-Interest Mortgages Encouraging Owners to Rent Instead of Sell
Record-low interest rates from recent years, particularly those attractive 3% mortgages, are also playing a major role. Homeowners who need to relocate are increasingly choosing to rent out their homes instead of selling, since their mortgage payments are comparatively low and selling would mean giving up that favorable rate.
What This Means for Investors and Homeowners
In the current market, fundamentals matter more than ever. Pricing, property condition, and location now have a much greater impact on how quickly a rental is leased.
- Pricing must be accurate from day one. Properties that are even 10% above market value are sitting longer than they used to.
- Condition issues are more noticeable. Homes needing updates or repairs are remaining on the market longer, and owners often must either complete improvements or adjust their pricing expectations.
- Competition is stronger. With more options available to renters, homes must present well and be competitively priced to attract quality tenants quickly.
You can still apply your standard criteria—just fairly and with accommodations as required.
Final Thoughts
Navigating today’s rental market requires a strategic and realistic approach. With increased competition, more discerning renters, and a broader selection of available homes, success comes from pricing accurately, presenting a well-maintained property, and understanding current market conditions. Investors and homeowners who adapt quickly are the ones seeing the best results. For those unsure where to start, partnering with an experienced property management team can make a significant difference—ensuring your home stands out, stays competitive, and rents to the right tenants in the shortest time possible.