We have progressed through the summer and school has started. Has this changed the law of supply and demand for rental properties? And how does this affect investment properties?
Consider these numbers.
- Days on market have steadily increased since June through September, going from 13.4, 16.3, 19.1, and 22.0 days each month, respectively.
- Rents have averaged $2,321, $2,338, $2,288, and $2,304.
- Meanwhile, new inventory in June was 388 units (single family and townhomes), July 374, August 399 and September 450.
Basically, the days on market have increased, rents have remained steady while more inventory has hit the market each month.
It’s hard to say if this is a definitive trend or just seasonality. Keep an eye on rents this winter and see if they continue to hold steady.
Is Star the next hot rental market?
Keep an eye on Star (zip code: 83669), the sleepy but growing town west of Eagle and north of Meridian. Bordering on Canyon County, the small town of about 10,000 people has doubled since 2010 (according to estimated census data). It has even caught the attention of American Homes 4 Rent (AH4R) a leasing company that is also a development company utilizing the “built for rent” business strategy. They are the developers and owners of American Star, a community in Star located near Floating Feather and Plummer Road. Here, AH4R build and then rent every home in the community.
Rents in Star have continued to rise this summer and new listings are decreasing. The median asking price has continued to be near the high end of the Treasure Valley.
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