Daft.ie’s Post

Across the 54 markets covered in each Daft.ie Rental Report, market rents were almost 5% higher on average in the first quarter of 2024 than a year previously. This marks the slowest pace of increase since the first quarter of 2021 and compares to a high of 14% seen in mid-2022. The slowdown in annual inflation is driven by Dublin, where rents increased by 2.5% in the year to April, compared to an average of 7.2% seen elsewhere in the country. Inflation in open-market rents has cooled elsewhere,too, though, in particular in Munster, where it fell from over 10% in late 2023 to less than 6% in Q1. For more visit 👉 www.daft.ie/report

The slowdown in market rents bodes well for inflation, with CoreLogic Australia reporting a 0.1% rise in rents through the September quarter, the smallest change over a rolling three-month period in four years. We will probably see a bounce back in the pace of rental growth through Q1 next year due to seasonal factors, but it's clear the annual growth trend in rental costs peaked in Q1 last year (in line with the peak rate of net overseas migration) and the rental component of CPI is likely to follow with a lag. Housing costs have the largest weight in the CPI calculation at 21.7%, with CPI rents allocated a 6.0% overall weight, the fourth largest weighting among the CPI sub-groups (after private motoring at 11.1%, new dwelling purchase by owner-occupiers at 8.1% and meals out & take away food at 7.0%).

Cause & Effect: Inflation And Rental Prices How high can it go until inflation hammers the decline and leveling of rents as more inventory comes to market https://lnkd.in/gen_Ygi9

What markets are see rents increase and which are seeing decreases? Check out this great article from New Western https://lnkd.in/eQgfMy9R

A few confusing and contradictory signals in the current rental world to point out - we’re simultaneously seeing rising rents for renewals in older housing stock and single family rentals on the one hand, and flattening rent growth at the top of the market for luxury multifamily. This points to oversupply at the higher end of the market, while ongoing demand for more affordable workforce housing and a lack of new single family stock drives rents up otherwise. Yet what is perhaps most interesting here is the self-fulfilling cycle of rising rents and runaway inflation – high inflation translates to higher rates (at present) and unaffordable construction financing. This crimps new supply. But without sufficient new supply coming online, rents continue to rise, keeping inflation high. And the wheel keeps turning. We are in a difficult period in housing for both investors and the everyday renter. Curious to see how this shakes out in the coming years.

Rental Reports The BLS released their quarterly New Tenant Rental Index, which shows how much new rents are rising or falling. In Q4 2024, new rents fell 2.4% year over year, which is a big change from +1.6% in Q3 2024. This is the first negative reading in 15 years and is a very good sign for inflation. The single largest component in the CPI and PCE inflation reports is Shelter, which is comprised primarily of Rent and Owners Equivalent rent. As we have stated for a while now, the shelter figures are lagging behind and are much higher than real-time data, keeping inflation more elevated than it should be. Of course, this has an impact on rates and the Fed’s rate cut decisions. The New Tenant Rental Index is showing signs that the BLS’ figures are starting to catch up and should help overall inflation to decelerate. Apartment List also released their new rent index this morning, showing that new rents fell 0.2% in January and are down 0.5% year over year. The year over year figure moved slightly higher from -0.6%, but this has been negative since mid 2023. Another sign that rents should begin to fall within the inflation readings we get. #justcallwilliam @ 630-881-8655

Zoopla’s House Price Index shows that the 2025 sales market has got off to a stronger start than in 2024 or 2023 While there is speculation that demand may cool after stamp duty costs rise from April 2025, there is an increased appetite amongst consumers to move home in the next 2 years. Over a fifth of renters want to buy a home, having seen the cost of renting rise rapidly over the last 2 years. Renters buying homes are a driving force in the first-time buyer market, which we expect to be the largest buyer group once again in 2025. The first few weeks of each year tend to provide a clear indication of how the rest of the year will unfold. 2025 has started off better than the previous 2 years. This bodes well for market activity over the rest of the year. Read the full report to find out more (link in the thread below)

Can rental demand catch up to the increased supply in Tampa? Let’s dig in… A large influx of active listings built up in the market over the past two years has depressed rents in Tampa to date. Monthly absorption has increased on average 5% per month since Jan ‘22, topping out at 4.75 months of inventory in Dec ‘23, compared to 2.88 months the previous year. The market has yet to absorb this excess inventory, leading to a -2.16% annual rent growth rate in ‘23. The highest average rental month was at $2,568 in Feb ‘23 vs a peak of $2,725 in Apr ‘22. The lease to list spread has steadily widened as well, dropping to 94.9% of list price in Dec ‘23. The ‘24 spring leasing performance would determine whether the market would see a recovery in ‘24. See how rental insights like these can help you understand and make smarter decisions in your market in 2024 with Entera. Click the link below to learn more or speak with one of our experts today. https://hubs.la/Q02w_rln0

"Month over month, 25 of the top 30 metros posted rent drops. The national asking rent decrease was due to the lifestyle segment, which saw advertised rents dropping 0.3% in November. Rents for the renter-by-necessity segment declined by 0.1%." Learn more from this recent report: https://cx.page/w6zbfz

Inventory Overhang in Indian Housing Market Hits Record Low According to our latest report, the time required to sell unsold stock has fallen to 22 months in the June quarter, down from 34 months last year. This steady sales momentum, combined with the upcoming festive season, signals a positive outlook for the market. However, while the festive period brings attractive offers, it’s essential for homebuyers to do their research and make informed decisions. Don't rush into a purchase - evaluate all factors carefully before closing the deal #HappyHomeBuying PropTiger.com Housing.com REA India For more insights, read the full article here: https://lnkd.in/gMchZres