The 2024-2025 leasing season continues to be one of the best yet
SANTA BARBARA, Calif., May 10, 2024 (PRNewswire) Preleasing at Yardi 200 schools reached 73.5 percent in April, exceeding last year’s rate by 50 basis points, while rent growth stood at 5.5 percent, according to the latest Yardi® Matrix National Student Housing Report.
As of April, the average rent reached $895 per bedroom, unchanged from the previous month and 5.5 percent higher year-over-year. Similar to the preleasing rate’s evolution, rent growth has slowed from the beginning of the leasing season, but is still above the average growth rate of 3.5 percent.
Rent growth slowed from 6.8 percent early on in the leasing season and has averaged six percent throughout the leasing season to date.
A total of 35 U.S. markets saw double digit rent growth, while 23 posted rent declines. State schools across the Sun Belt with growing enrollments have seen the biggest jumps in rents.
Preleasing has lately been trending in line with last year. A total of 19 schools were at least 90 percent preleased as of April, including Ole Miss (100 percent), Kentucky (93.3 percent), Purdue (93 percent) and James Madison (92.5 percent). But 22 universities didn’t reach a 50 percent preleasing rate, such as UT–Arlington and Georgia State.
“Strong rent growth is indicative of solid demand for product and consolidation of higher education into the largest student housing markets, as primary state schools have been able to outgrow their peers,” state Matrix analysts.
Student housing investment has been on par with last year, with 18 properties changing hands year-to-date through April. The average price per bed stood at $100,857—well ahead of previous years.
Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, student housing, vacant land, industrial, office, retail and self storage property types. Email matrix@yardi.com, call 480-663-1149 or visit yardimatrix.com to learn more.
About Yardi
Celebrating its 40-year anniversary in 2024, Yardi® develops industry-leading software for all types and sizes of real estate companies across the world. With over 9,000 employees, Yardi is working with our clients to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.
At $410,000, the median price in the Mid-Atlantic hit a record high in April. Prices rose across home types and reached new highs in four of the nine subregions in the Bright MLS service area.
There were 25,772 new listings across the Bright MLS service area in April 2024. New listings increased from last month and were 14.7% higher than a year ago.
All regions in the Bright MLS service area had higher new listings in April 2024, and the number of active listings at the end of the month was higher than a year ago in all regions. Still, overall inventory is half of its level in April 2019.
Closed sales were 7.6% higher than April 2023, and new pending sales were above last year by 3.1%. However, year to date, both closed sales and new pending sales are lagging slightly behind 2023.
While the market remains competitive, there are some buyers who are being sidelined by high mortgage rates, passing 7% again in mid-April, and record high prices. Affordability will be a key factor in the market throughout the rest of the spring and into the summer.
NORTH BETHESDA, Md., May 10, 2024 (PRNewswire) Buyers awaiting more selection have had their wish granted in 2024. New listings increased 14.7% in April 2024 and year-to-date have increased 4.4% compared to the number of new listings coming onto the market in the same period in 2023.
Higher new listings have boosted supply in the Mid-Atlantic relative to last year. All metro areas had more active listings at the end of April 2024 than were on the market in April 2023. After three consecutive months of growth, active listings were 17.2% above last year with some metros boasting even stronger improvements.
“More supply is good news for the housing market, but there is still a long way until we are back to a balanced housing market,” said Dr. Lisa Sturtevant, Bright MLS Chief Economist. “Affordability is a big challenge, and we see signs that summer buyers are holding back—like the fact that new listings are up, but showing activity is low.”
The median sale price was $410,000 in April, a new record high. Further, the median days on market indicates competition remains tight, with half of the homes sold in April off the market in eight days or less.
Yet buyers have continued to make purchases across the Mid-Atlantic. Closed sales in April 2024 were 7.6% above April 2023. Both closed sales and new pending sales only slightly lag 2023, down 0.9% and 0.4% year to date, respectively.
April Mid-Atlantic Housing Market by Region
Philadelphia: Price growth at two-year high in the Philadelphia metro area
The median price of homes sold in April was $365,000, which is 10.9% higher than a year ago, the fastest year-over-year price appreciation since May 2022. Prices rose fastest in the New Jersey suburbs.
Meanwhile, new listings are coming onto the market at a quicker rate than 2023 and boosting supply. All counties in the metro except Philadelphia County had more active listings at the end of April than a year ago. Supply remains tight despite the roughly 40% increase of what was on the market in April 2019.
The additional inventory hasn’t slowed the market, with half the homes selling in nine days or less. This is a tad quicker than last year, when the median days on market was 11 days in April 2023.
Baltimore: Baltimore metro buyers see increasing inventory, but homes still sell quickly
Inventory at the end of April 2024 was 15.7% higher than April 2023, with nearly 4,000 homes on the market. This is the highest number of homes available at the end of April in the Baltimore metro area since 2020.
Despite the additional selection, homes are moving off the market quickly. Nearly half of the homes sold in April 2024 were on the market for eight days or less, only one day slower than April 2023.
Prices are also continuing to rise. The median sold price in the Baltimore metro area was $381,000, which was 5.8% higher than April 2023. The current median is just $4,000 shy of the high hit in both June and August 2023 of $385,000.
Washington, D.C.: More inventory has led to more transactions in the Washington D.C. metro
For three consecutive months, active listings have trended higher than last year. At the end of April, there were 6,569 active listings, which is 21.8% higher than April 2023.
Buyers continue to purchase, and closed sales surpassed what they were last April (+7.4%). Pending sales also improved, up 4.0%. This is the first year-over-year increase in new pending sales since February 2022.
The median price in the metro was $640,000 in April 2024, hitting a new record. Median sales prices for detached homes and townhomes were both at record highs, while condo prices were slightly below the February 2024 high.
About Bright MLS Bright MLS was founded in 2016 as a collaboration between 43 visionary associations and two of the nation’s most prominent MLSs to transform what an MLS is and what it does, so real estate pros and the people they serve can thrive today and into our data-driven future through an open, clear, and competitive housing market for all. Bright is proud to be the source of truth for comprehensive real estate data in the Mid-Atlantic, with market intelligence currently covering six states (Delaware, Maryland, New Jersey, Pennsylvania, Virginia, West Virginia) and the District of Columbia. Bright MLS’s innovative tool library—both created and curated—provides services and award-winning support to well over 100K real estate professionals, enabling their delivery on the promise of home to over half a million homebuyers and sellers monthly. Learn more at BrightMLS.com.
NAR forecasts 4.46 million existing-home sales in 2024, a 9% increase from 2023
Key Highlights:
Pending home sales increased 3.4% in March.
Month over month, contract signings rose in the Northeast, South and West but dropped in the Midwest.
Compared to one year ago, pending home sales declined in the Northeast and South while the Midwest and West improved.
Washington, D.C. – April 25, 2024 (nar.realtor) Pending home sales in March climbed 3.4%, according to the National Association of REALTORS®. The Northeast, South and West posted monthly gains in transactions while the Midwest recorded a loss. Year-over-year, the Northeast and South registered decreases but the Midwest and West improved.
The Pending Home Sales Index (PHSI)* – a forward-looking indicator of home sales based on contract signings – increased to 78.2 in March. Year over year, pending transactions were up 0.1%. An index of 100 is equal to the level of contract activity in 2001.
“March’s Pending Home Sales Index – at 78.2 – marks the best performance in a year, but it still remains in a fairly narrow range over the last 12 months without a measurable breakout,” said NAR Chief Economist Lawrence Yun. “Meaningful gains will only occur with declining mortgage rates and rising inventory.”
NAR forecasts that existing-home sales will rise by 9% in 2024 to 4.46 million (from 4.09 million 2023) and another 13.2% in 2025 to 5.05 million (from 2024). Housing starts are expected to rise by 1.2% in 2024 to 1.43 million (from 1.413 million in 2023) and 4.9% to 1.5 million in 2025 (from 2024).
“Home sales have lingered at 30-year lows, and since 70 million more Americans live in the country now compared to three decades ago, it’s inevitable that sales will rise in coming years,” explained Yun. “Inventory will grow steadily from more home construction, and various life-changing events will require people to trade up, trade down or move to another location.”
NAR expects that median home prices will increase by 1.8% in 2024 to a record of $396,800 (from $389,800 in 2023) and another 1.8% in 2025 to $403,800 (from 2024). NAR forecasts a modest reduction – 0.6% – in the median new home price to $426,100 in 2024 (from $428,600 in 2023), reflecting the building of smaller-sized homes. The association anticipates the median new home price will jump 3.4% to $440,500 in 2025 (from 2024).
“Home prices are expected to rise roughly in line with consumer price inflation and wage growth over the next two years,” added Yun. “Most homeowners are on strong financial footing in current market conditions, with only 2% of sales classified as being distressed.”
NAR expects home sales to steadily improve while home prices continue to hit record highs.
“Job gains, steady mortgage rates and the release of inventory from pent-up home sellers will lead to more sales,” explained Yun. “Given the lingering housing shortage, home prices will march higher, albeit much more slowly than in the past.”
Pending Home Sales Regional Breakdown
The Northeast PHSI increased 2.7% from last month to 65.1, a decline of 0.3% from March 2023. The Midwest index fell 4.3% to 78.1 in March, up 1.3% from one year ago.
The South PHSI improved 7.0% to 95.8 in March, dropping 1.5% from the prior year. The West index rose 6.8% in March to 61.0, up 3.6% from March 2023.
“Home prices rising faster than income growth is not healthy and adds challenges for first-time buyers,” said Yun.
Yun further noted, “Inventory will gradually rise from recent growth in home building. Additionally, many sellers who delayed listing in the past two years will start putting their homes on the market to move to a different home that better fits their new life circumstances – such as changes in family composition, jobs, commuting patterns and retirees wanting to be closer to their grandkids.”
About the National Association of REALTORS®
The National Association of REALTORS® is America’s largest trade association, representing 1.5 million members involved in all aspects of the residential and commercial real estate industries. The term REALTOR® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS® and subscribes to its strict Code of Ethics.
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*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.
Pending contracts are good early indicators of upcoming sales closings. However, the amount of time between pending contracts and completed sales is not identical for all home sales. Variations in the length of the process from pending contract to closed sale can be caused by issues such as buyer difficulties with obtaining mortgage financing, home inspection problems, or appraisal issues.
The index is based on a sample that covers about 40% of multiple listing service data each month. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months.
An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined. By coincidence, the volume of existing-home sales in 2001 fell within the range of 5.0 to 5.5 million, which is considered normal for the current U.S. population.
NOTE: Existing-Home Sales for April will be released May 22. The next Pending Home Sales Index will be released May 30. All release times are 10 a.m. Eastern. View the NAR Statistical News Release Schedule.
