State of the housing market: May 2023

The housing market cooldown covered in last month’s market overview continued in April. High rent prices appear to be the new normal but growth is still slowing from the month before.

• According to Realtor.com, the national median list price grew from $423,000 in March to $430,000 in April.
• The site also reports a 12% increase in newly listed homes, from 349,284 in March to 392,016 in April.
• According to data from Zumper, the national median rent for one-bedrooms remained constant from February to March at $1,495. Two-bedroom median rent increased by 0.5%, reaching $1,842.
• The national rental vacancy rate rose from 5.8% in Q4 2022 to 6.4% in Q1 2023. If owners or property managers are having difficulty finding tenants, this could be another sign of a slowing rental market. The 0.8% homeowner vacancy rate remains in line with the past eleven quarters.
• Additionally, the National Association of Home Builders reports a builder sentiment index of 50, up five points from the previous month. This is the first time confidence has hit 50 since July 2022, and it represents the fifth consecutive month of increasing optimism.
• That confidence is reflected in improving construction stats. Single‐family housing starts in April reached 846,000, up 1.6% above the revised March figure of 833,000.

More market headlines

The housing market correction would regain new life if the U.S. defaults, says Moody’s chief economist – Fortune

‘Granny flats’ play surprising role in easing California’s housing woes – The Washington Post

Built-to-rent housing is on the rise – Axios