More single-family homes are being turned over to renters
Single-family rentals, once unusual in Boston’s suburbs, have steadily become more commonplace and more expensive.
Looking to rent a house instead of buying one? Get ready to ante up, then.
Rents on single-family homes in Greater Boston rose 7.7 percent over the past year, a new study finds.
The average rent for a single-family home hit $2,382 during the second quarter, from April through the end of June, finds the report, put out by Real Property Management and Rent Range.
The report also finds that single-family rentals, once unusual in Boston’s suburbs, have steadily become more commonplace. Roughly 11.45 percent of all single-family homes in the Boston area are now rented out, with the study looking at homes with at least three bedrooms.
“That is a huge increase,’’ said Caleb Page, who owns the Boston franchise of Real Property Management, working out of an office in Jamaica Plain, of the rent increases.
Rents for Boston single-family homes are also both higher than the national average and rising faster than it as well.
The national average is $1,320, representing a 6.1 percent increase over last year.
Single-family rentals have become a much more important part of the Boston area real estate market over the past few years.
In the aftermath of the Great Recession and the real estate market downturn, an array of investors snapped up foreclosed homes and turned them into rentals. In the Boston area, these were more often smaller, mom and pop investors looking to buy while prices were low and then make money renting.
“Many people see real estate as the cornerstone of their individual wealth building,’’ Page said.
In other cases, homeowners who wanted to sell in those first few years after the recession couldn’t find buyers. Faced with having to relocate or move, some would-be sellers instead rented their homes out.
For his part, Page has seen all these reasons and then some since buying the local Real Property franchise back in 2009.
His company provides a range of property management services for owners renting out homes or condos. The Real Property Boston franchise currently manages hundreds of homes and condos, helping run tenant and condominium associations as well.
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One factor driving up rents on single-family homes has been a dearth of available listings, with construction of new homes at all-time lows and builders typically selling new construction, not renting it out.
That has led to a super low vacancy rate of just 3.85 percent, compared to the national rate of 5.46 percent.
Of his own franchise’s portfolio of 300 units, only 12 have leases that are expiring and are potentially available, he said.
“Americans are increasingly shifting toward renting, which is one of the more supportive claims behind Boston’s rising renting rates,’’ Page said.
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