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US Rental Housing Market News for April 2023

US Rental Housing Market News for April 2023
US Rental Housing Market News for April 2023


As we enter Q2 2023, a lot of investors are curious to read about the latest US housing market news to see what’s in store for them this year.

Q1 2023 was somehow kinder to a lot of investors and homebuyers, as we saw slightly lower rates and cooling markets. It gave us all a breather from 2022’s wild ride when property prices soared and mortgage rates went through the roof. 

In this news article, we will talk about what investors can look forward to in April and, hopefully, give them ideas on how to go about with real estate investing

Housing Inventory: What Are the Latest Numbers?

For the latest US housing market news, let’s talk about the housing supply first. While inventory remained steady at the 980,000’s level from January 2023 to February 2023, it went up by at least 30,000 units compared to March 2022 figure. Housing inventory data for March 2023 is not yet available at the time of writing. 

Additionally, Forbes’s updated news report states that housing starts went up 9.8% in February, giving us additional inventory. Lawrence Yun, chief economist for the National Realtors Association (NAR), said that the national housing inventory is still at historic lows. He added:

Consequently, multiple offers are returning on a good number of properties.

Existing inventory is still below levels seen before the 2008 housing market crash. It looks like 2023 will pretty much be the same. It is because declining mortgage rates and cooling markets are bringing back borrowers and buyers into real estate investing. 

Currently, unsold inventory is at a 2.6-month supply, up slightly from 1.6 months a year ago. 

However, US News also reports that 600,000 new apartments will be added to the market in 2023. Earlier in January, around 563,000 multifamily building permits were issued, according to the US Census Bureau.  

10 US Markets With the Most Listings as of March 2023

Real estate website Mashvisor gives us an idea of the housing supply in the US in its March 2023 market data. According to the website, the following locations reported the highest number of listings on the market:

1. New York City, NY

  • Number of Listings for Sale: 4,312

2. Miami, FL

  • Number of Listings for Sale: 3,954

3. Las Vegas, NV

  • Number of Listings for Sale: 3,950

4. San Antonio, TX

  • Number of Listings for Sale: 3,890

5. Chicago, IL

  • Number of Listings for Sale: 3,194

6. Atlanta, GA

  • Number of Listings for Sale: 3,146

7. Philadelphia, PA

  • Number of Listings for Sale: 2,780

8. Cape Coral, FL

  • Number of Listings for Sale: 2,390

9. Dallas, TX

  • Number of Listings for Sale: 2,336

10. Tampa, FL

  • Number of Listings for Sale: 2,295

Property Prices: How Much Do Houses Cost Nowadays?

For more US housing market news, it seems that most real estate markets are still cooling down in the US. According to the NAR, in February 2023, the median home sales price went down 2% year-over-year. The decrease brought an end to the 131-month year-over-year increases.

Now just because markets are cooling down (meaning the increase rates aren’t as high as they used to be), the tight inventory is also keeping prices from going down. As a result, housing affordability remains far from the reach of many homebuyers and real estate investors. Many of those who were able to buy properties at historically low mortgage rates are staying put for now. 

The good news is that while home prices aren’t dropping dramatically any time soon, they aren’t as insanely high as the rates were in early 2022. As far as home prices going down, it will largely depend on where mortgage rates go in the coming months. 

Related: Will There Be a Real Estate Housing Market Correction in 2023?

10 Most Affordable Real Estate Markets in the US as of March 2023

According to Mashvisor’s March 2023 market data, the markets with the most affordable investment properties are the following:

1. Smith, PA

  • Median Property Price: $71,580

2. Christopher, IL

  • Median Property Price: $73,660

3. Claysburg, PA

  • Median Property Price: $77,822

4. Monessen, PA

  • Median Property Price: $92,217

5. Wood River, IL

  • Median Property Price: $92,988

6. Parsons, KS

  • Median Property Price: $96,466

7. Hampton, IA

  • Median Property Price: $97,950

8. Centralia, IL

  • Median Property Price: $100,850

9. Highland Park, MI

  • Median Property Price: $101,057

10. Rock Falls, IL

  • Median Property Price: $102,450

April Mortgage Rates: What’s in Store for the US Market

One of the biggest questions in the minds of most investors and buyers is how much are mortgage rates today. Most folks are keeping their eyes on the US housing market news hoping that mortgage rates will drop in the current quarter. 

So far, the first quarter’s mortgage rates steadily moved within the 6.30% to 7.15% range. The lowest rate for a 30-year fixed was 6.36% for weeks three and five. We saw a peak of 7.13% just a few weeks ago during the week of March 10, 2023. 

According to Bankrate, the mortgage rates at the time of writing are the following: 

  • 30-year fixed-rate mortgage: 6.81% 
  • 15-year fixed-rate mortgage: 6.12% 
  • 10-year fixed-rate mortgage: 6.31%
  • 30-year refinance: 6.97% 
  • 5-1 ARM: 5.72%

Now, as far as the second quarter and the rest of the year are concerned, industry insiders and experts offer slightly different opinions, as reported by Norada

Generally, nearly everyone is optimistic that mortgage rates will continue to go down as the US economy slows. Lawrence Yun anticipates rates to go as low as 5.5% by the middle of the year. On the other hand, Fannie Mae and Freddie Mac both predict rates to reach 6.8% and 6.4%, respectively, in 2023.

The Mortgage Bankers Association (MBA) also expects rates to fall in 2023 as its economists predict that the US will enter a recession during the first half of the year. According to the group, rates for 2023 will conclude at about 5.4%.

Related: How to Get the Best Mortgage Rate for Investment Property in 2023

Long Term Rental Market Updates for April 2023

Long term rentals are an investment strategy adopted by many investors to give them a steady monthly income. As of mid-March 2023, the average national rent clocks in at $1,976, a 0.5% increase over the past six months. The annual rent growth rate is also down by nearly 10% year-over-year, according to a US News rental housing market report.

The same report quotes RentSpree’s CEO Michael Lucarelli:

Landlords will likely begin to minimize rent increases to prevent tenants from leaving. This can also give renters far more negotiating power than before.

The downward trend in rental rates can be attributed to two main factors: the slight increase in housing supply and the easing of economic challenges. 

Top 5 US Markets for Long Term Rentals in April 2023

We accessed Mashvisor’s March 2023 data to give you the top five markets for long term rentals in April. The following list is ranked from the highest to lowest cash on cash return on long term rentals and is filtered using the following criteria: 

  • Each location must have a max median property price of $1,000,000; 
  • Each location should have no less than 100 active listings on the long term rental market;
  • Each location must have a minimum monthly rental income of $2,000;
  • Each location should offer at least a 2.00% cash on cash return; and
  • Each location must have a price to rent ratio of 20 and above.

That said, if you’re looking for a good location for long term rental property investments in April 2023, consider the areas below:

1. North Miami, FL

  • Median Property Price: $858,896
  • Average Price per Square Foot: $486
  • Days on Market: 150
  • Number of Long Term Rental Listings: 315
  • Monthly Long Term Rental Income: $3,399
  • Long Term Rental Cash on Cash Return: 4.33%
  • Long Term Rental Cap Rate: 4.40%
  • Price to Rent Ratio: 21
  • Walk Score: 52

2. Savannah, GA

  • Median Property Price: $506,726
  • Average Price per Square Foot: $320
  • Days on Market: 74
  • Number of Long Term Rental Listings: 373
  • Monthly Long Term Rental Income: $2,117
  • Long Term Rental Cash on Cash Return: 3.69%
  • Long Term Rental Cap Rate: 3.75%
  • Price to Rent Ratio: 20
  • Walk Score: 72

3. Stuart, FL

  • Median Property Price: $754,015
  • Average Price per Square Foot: $387
  • Days on Market: 78
  • Number of Long Term Rental Listings: 412
  • Monthly Long Term Rental Income: $3,010
  • Long Term Rental Cash on Cash Return: 3.42%
  • Long Term Rental Cap Rate: 3.46%
  • Price to Rent Ratio: 21
  • Walk Score: 46

4. Wilmington, NC

  • Median Property Price: $513,033
  • Average Price per Square Foot: $405
  • Days on Market: 71
  • Number of Long Term Rental Listings: 133
  • Monthly Long Term Rental Income: $2,150
  • Long Term Rental Cash on Cash Return: 3.35%
  • Long Term Rental Cap Rate: 3.40%
  • Price to Rent Ratio: 20
  • Walk Score: 30

5. Virginia Beach, VA

  • Median Property Price: $506,109
  • Average Price per Square Foot: $323
  • Days on Market: 50
  • Number of Long Term Rental Listings: 1,767
  • Monthly Long Term Rental Income: $2,089
  • Long Term Rental Cash on Cash Return: 3.34%
  • Long Term Rental Cap Rate: 3.39%
  • Price to Rent Ratio: 20
  • Walk Score: 21
US Housing Market News - Mashvisor

You can use Mashvisor to search for and analyze top-performing long term and short term rental properties in your preferred city and neighborhood.

Short Term Rental Market Updates for April 2023

As we go back to nearly pre-pandemic normals, the market for short term rentals continues to grow stronger. But just like the long term rental market, the vacation rental industry is also impacted by inventory, home prices, and mortgage rates. The said factors weigh down investors, but some continue to make investments because of the profit potential offered by short term rentals. 

With the pandemic’s social impacts carrying over to the post-COVID era, people make more time to travel as a lot of them fully embrace remote work. And instead of limiting their visits to familiar places, they are venturing out into new locations. 

Another thing to note is that guests are leaning more towards contactless stays compared to more personal human interaction. It means that short term rental owners who want to up their game should consider incorporating more technology into their Airbnb business

The same goes for those looking to start a rental property business and getting them listed on vacation rental platforms. 

It is also important to note that there is an increasing demand for vacation rentals that allow for longer stays. 

Related: 40 Best Places for Buying Investment Property in 2023

Top 5 US Markets for Short Term Rentals in April 2023

Similar to our list of long term rental markets, we’re giving you five of the best real estate markets for vacation rentals using Mashvisor’s March 2023 short term rental data.

This list is ranked from highest to lowest short term rental cash on cash return and is filtered using the following criteria: 

  • Each location must have a median property price that will not exceed $1,000,000; 
  • Each location must have a minimum of 100 active listings on the short term rental market; 
  • Each location must offer a monthly rental income of $2,000 and above; 
  • Each location must have a short term cash on cash return of 2.00% or more; and
  • Each location must have an occupancy rate of no less than 50%.

Here are the top five locations for short term rental property investments based on Mashvisor’s latest report:

1. Northlake, IL

  • Median Property Price: $323,180
  • Average Price per Square Foot: $217
  • Days on Market: 139
  • Number of Airbnb Listings: 120
  • Monthly Airbnb Rental Income: $4,269
  • Airbnb Cash on Cash Return: 8.29%
  • Airbnb Cap Rate: 8.44%
  • Airbnb Daily Rate: $171
  • Airbnb Occupancy Rate: 53%
  • Walk Score: 33

2. Columbia Heights, MN

  • Median Property Price: $294,482
  • Average Price per Square Foot: $142
  • Days on Market: 22
  • Number of Airbnb Listings: 314
  • Monthly Airbnb Rental Income: $3,724
  • Airbnb Cash on Cash Return: 8.06%
  • Airbnb Cap Rate: 8.21%
  • Airbnb Daily Rate: $158
  • Airbnb Occupancy Rate: 58%
  • Walk Score: 82

3. Bridgeton, MO

  • Median Property Price: $264,711
  • Average Price per Square Foot: $136
  • Days on Market: 23
  • Number of Airbnb Listings: 120
  • Monthly Airbnb Rental Income: $3,291
  • Airbnb Cash on Cash Return: 7.69%
  • Airbnb Cap Rate: 7.83%
  • Airbnb Daily Rate: $154
  • Airbnb Occupancy Rate: 58%
  • Walk Score: 3

4. Rileyville, VA

  • Median Property Price: $332,031
  • Average Price per Square Foot: $192
  • Days on Market: 15
  • Number of Airbnb Listings: 155
  • Monthly Airbnb Rental Income: $3,733
  • Airbnb Cash on Cash Return: 7.57%
  • Airbnb Cap Rate: 7.69%
  • Airbnb Daily Rate: $236
  • Airbnb Occupancy Rate: 56%
  • Walk Score: 10

5. Harahan, LA

  • Median Property Price: $398,200
  • Average Price per Square Foot: $209
  • Days on Market: 57
  • Number of Airbnb Listings: 111
  • Monthly Airbnb Rental Income: $4,022
  • Airbnb Cash on Cash Return: 7.46%
  • Airbnb Cap Rate: 7.57%
  • Airbnb Daily Rate: $137
  • Airbnb Occupancy Rate: 59%
  • Walk Score: 56

Wrapping It Up

There is a great benefit to paying attention to the news. The latest US housing market news gives you the ability to plan ahead and make well-informed decisions about real estate investment

With inventory slowly catching up, real estate markets softening, and mortgage rates becoming more stable, a lot of investors are optimistic about the rest of 2023. That is if we don’t get sucker-punched by another world-changing event as catastrophic as COVID-19 in 2020 and the geopolitical conflict in Eastern Europe in 2022.

Looking at the latest US housing market news, we seem to be on the road to economic recovery. Things are still challenging, and we may still encounter a few bumps in the road, but we’ll get there eventually. Such a positive-leaning outlook is making a lot of buyers and investors hopeful about making a purchase or two on investment properties this year.

To get more insight into any market of your choice, we recommend signing up for Mashvisor’s services to get access to a highly accurate real estate market database and investing tools. It helps countless investors find the right investment properties under different economic conditions. If you’re new to the game, you will want Mashvisor by your side. 

Get access to Mashvisor’s comprehensive database and other tools to get you on your way to a thriving real estate investing career. Get started on your 7-day free trial today.

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