State of the housing market: November 2023

Having gone this deep into off-peak season, property managers won’t be surprised by softening home and rental price increases and slow construction.

• According to Realtor.com, the national median list price fell slightly for the fourth month in a row, from $430,000 in September to $425,000 in October.

• The site also reports a 2.6% decrease in newly listed homes – from 357,956 in September to 348,564 in October.

• The national median rent for one-bedrooms is down 0.4% over last month at $1,505 – the most significant month-over-month decline reported by Zumper this year. At $1,862, two-bedroom median rent is down $2.

• Of Zumper’s top 100 cities, 59 saw a month-over-month drop in rental prices in October, compared to 40 in September. Sixteen cities reported no change, and just 25 are up month-over-month.

• Rental prices have fallen gradually over the last year and will likely continue to do so throughout the winter, as rental rates typically hit their lowest between October and January.

• The National Association of Home Builders reports a builder sentiment index of 34, down another six points from October to its lowest level since December 2022, as high mortgage rates continue to pummel the industry.

• However, NAHB Chief Economist Robert Dietz says that, “recent macroeconomic data point to improving conditions for home construction in the coming months. In particular, the 10-year Treasury rate moved back to the 4.5% range for the first time since late September, which will help bring mortgage rates close to or below 7.5%.”

• As a result, NAHB expects single-family starts to rise 5% in 2024 as inflation improves.

• Despite the current sentiment, single‐family housing starts in October were nevertheless slightly above the revised September figure of 968,000, at 970,000.

More rental market headlines

Young renters prioritize community living – National Apartment Association

States struggle to curb fake emotional support animals – Disability Scoop

5 best up-and-coming places to buy rental properties – NASDAQ