Homes.com Quarterly “State of the Rental Market” Report

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Homes.com is continuing to keep a close eye on the real estate market and is observing that home renters across the US are embracing the ease and accessibility of the internet while house hunting. More specifically sites like Homes.com and ForRent.com are being utilized by home renters to compare properties and find their new rental home. With over 31 million searches for rental properties on our sites, it’s clear to see that rental properties are still a very hot commodity and people are actively looking for them online.

Our recently compiled data shows a twenty percent increase in rental searches on Homes.com and ForRent.com in the months of April, May and June {Q2} compared to January, February and March {Q1} of 2012.

The large increase in searches is great news for landlords who own rental properties or individuals looking to get into real estate investing as more house hunters are looking for their next rental.

Maybe it’s the sunshine and warm weather, but home renters favor similar cities to home buyers as we reported in the Homes.com Quarterly “State of the Housing Market” Report most of them being located in the southern part of the US.

The top ten cities searched by renters on Homes.com and ForRent.com along with their percent increase in searches in Q2 compared to Q1 are:

Houston (up 31.44%)
San Antonio (up 11.26%)
Atlanta (up 42.78%)
Orlando (up 33.32%)
Chicago (up 38.51%)
Las Vegas (up 18.41%)
Phoenix (up 55.85%)
Austin (up 28.16%)
Charlotte (up 41.96%)
Miami (up 35.06%)

Houston and San Antonio top the list, due in part to Texas’ low cost of living and the absence of state income tax. Rounding off the top five are Atlanta, Orlando and Chicago. All three cities are considered great places for young, recent graduates, the most common demographic in renters. Although Phoenix came in seventh on the list, the city saw a more than 55 percent increase in home searches – the largest jump on the top ten list.

According to a recent report by the U.S. Bureau of Labor Statistics, Houston’s job market is growing faster than any other metro area, jumpstarting its housing market. Renters will not only find Southern charm, but job openings and plenty of available real estate. With Houston being home to 23 Fortune 500 companies, it’s a booming area for technology and perfect for recent graduates eager to get that corporate experience.

Behind Houston is San Antonio. San Antonio is the third-fastest growing city in the country and is considered the most affordable city in America for residents and visitors. It also has the first bike share program in Texas and is well known as a safe “walking” city; very green don’t you think?

The chart below shows the top 100 cities searched throughout the country. The increase in searches from Q1 to Q2 is an indicator that the rental market continues to be strong even as home purchases are on the rise.

Click on the image to see a larger version.