HOUSTON--(BUSINESS WIRE)--Beekin Inc., a developer of next-generation AI platforms for rental housing investors and lenders, today released its Year-End Rental Analysis for 2023, with data pointing toward improved conditions for renters. The rate of annual rental price increases for single-family rental properties and multifamily rental units continued to trail rises in median home prices, the consumer price index (CPI) and wage growth in 2023. The Beekin study, prepared by market intelligence firm CJ Patrick Company, shows that while the CPI rose 4.1% in 2023, rents for multifamily units and single-family rental properties rose by just 1.1% and 0.4%, respectively.
Increases in rental prices on single-family properties exceeded the growth of the median sales price of homes in just 13 states, while home price increases were higher than rental price increases in 37 states and the District of Colombia. Rent price increases on multi-family units were lower than home price increases in 29 of the 47 states with enough data available to report on.
“In most of the country, rental affordability continues to improve relative to home prices, which are rising more rapidly,” said Beekin founder and CEO Vidur Gupta. “Wage growth rose 4.5%, outpacing the rate at which rental prices are increasing, while median home prices went up 2.1%,” Gupta added, referencing ATTOM’s 2023 Year End Home Sales Report. “This is all great news for prospective renters.”
Beekin and CJ Patrick Company used data on more than 12 million unique single-family homes and multifamily units dating back to 2015. Methods like those used by the Bureau of Labor Statistics for the Consumer Price Index helped to extrapolate rent growth at the national, state and local level for over 170 metropolitan statistical areas (MSAs). The team sourced wage data from the Bureau of Labor Statistics report on average hourly earnings of non-farm employees. State and MSA-level data is available upon request.
The 4.1% CPI growth was higher than rental increases for multifamily units in all but nine states, and only six states had rental growth higher than the 4.5% annual wage growth in 2023. The difference was even more stark when measuring rental price increases in the single-family rental market, where only two states had higher rate increases than wage growth, and only three had rental increases that were higher than the CPI.
“Slowing rental cost increases are good news for millions of prospective homebuyers priced out of the market by high home prices and higher mortgage rates,” Gupta said. “With rental rates rising more slowly than wages for the first time in several years, and a massive amount of new rental inventory on the market, tenants are in better shape today than in quite some time.”
About Beekin
Beekin is a decision intelligence platform designed for institutional investors and lenders in the rental housing sector. Through patented software for rent valuations, revenue optimization and rental indexation, Beekin’s platform is boosting NOI, increasing customer retention, and driving operational efficiencies across underwriting and asset management for some of the top property companies in the United States. For more information, visit beekin.co.
About CJ Patrick Company
Founded in 2019, CJ Patrick Company is a market intelligence and business advisory firm working with companies in the real estate and mortgage industries. Visit www.cjpatrick.com for more information.
