IRVINE, Calif. – Nov. 17, 2022 — ATTOM, a leading curator of real estate datanationwide for land and property data, today released its third-quarter 2022 U.S. Residential Property Mortgage Origination Report, which shows that 1.97 million mortgages secured by residential property (1 to 4 units) were originated in the third quarter of 2022 in the United States. That figure was down 19 percent from the second quarter of 2022 – the sixth quarterly decrease in a row – and down 47 percent from the third quarter of 2021 – the biggest annual drop in 21 years.

The continued decline in residential lending resulted from double-digit downturns in both refinance and purchase loan activity that far outweighed another increase in home-equity credit lines.

Overall, lenders issued $636.5 billion worth of mortgages in the third quarter of 2022. That was down quarterly by 22 percent and 46 percent annually. As with the number of loans, the annual decrease in the dollar volume of mortgages stood out as the largest since at least 2001 and was the latest sign that the 11-year U.S. housing market boom is losing steam.

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“There are no surprises in this quarter’s loan origination numbers, as the unprecedented jump in mortgage rates has battered both the purchase and refinance markets,” said Rick Sharga, executive vice president of market intelligence at ATTOM. “Prospective homebuyers have been priced out of the market by the combination of 7 percent mortgage rates and higher home prices. And refinance activity will probably continue to decline, since the majority of homeowners have loans with sub-4 percent interest rates.”

The continued dip came as just 661,000 residential loans were rolled over into new mortgages and borrowers took out only 943,000 loans to buy homes during the third quarter of 2022.

During a period when mortgage interest rates continued to climb, refinancing activity was down 31 percent from the second quarter of 2022 and 68 percent from a year earlier. Refinancing activity has dropped for six consecutive quarters, to a level that is just one-quarter of what it was in early 2021. The dollar volume of refinance loans in the period running from July through September was down 33 percent from the prior quarter and 67 percent annually, to $212 billion.

The number of purchase loans, meanwhile, slumped by 16 percent quarterly and 33 percent annually,  while the dollar volume decreased to $353.9 billion.

Only a 5 percent quarterly jump in the number and value of HELOCs – the third quarterly straight gain – kept the industry from seeing an across-the-board contraction.

By the end of the third quarter, refinance activity represented just a third of overall mortgages, compared to two-thirds as recently as the first quarter of last year. Purchase lending continued at just under half of all activity in the third quarter of 2022, while home-equity packages comprised one of every five mortgage deals completed. That ratio for so-called HELOC loans was up from one of every 21 a year and a half ago.

The most recent mortgage numbers are among the strongest reflections yet of a U.S. housing market that has cooled considerably after 11 years of nearly uninterrupted gains.

Total mortgages drop at fastest annual pace since 2001

Banks and other lenders issued 1,968,930 residential mortgages in the third quarter of 2022. That was down 18.7 percent from 2,421,540 in the second quarter of 2022 and down 46.9 percent from 3,708,000 in the third quarter of 2021. The annual decline marked the largest since at least 2001. The $636.5 billion dollar volume of loans in the third quarter was down 22.4 percent from $819.9 billion in the prior quarter and was 46.4 percent less than the $1.19 trillion lent in the third quarter of 2021.

Overall lending activity decreased from the second quarter of 2022 to the third quarter of 2022 in 206, or 98 percent, of the 210 metropolitan statistical areas around the U.S. with a population of more than 200,000 and at least 1,000 total residential mortgages issued in the third quarter of 2022. Total lending activity was down at least 15 percent in 116 of the metros with enough data to analyze (55 percent). The largest quarterly decreases were in Myrtle Beach, SC (total lending down 52.7 percent); Knoxville, TN (down 44.5 percent); Charleston, SC (down 43 percent); Ogden, UT (down 41 percent) and Buffalo, NY (down 36.2 percent).

Aside from Buffalo, metro areas with a population of least 1 million that had the biggest decreases in total loans from the second quarter to the third quarter of 2022 were St. Louis, MO (down 35.8 percent); Miami, FL (down 30.4 percent); Washington, DC (down 30.1 percent) and San Jose, CA (down 28.2 percent).

The biggest increases, or smallest decreases, in the total number of mortgages from the second quarter to the third quarter of 2022 were in Hartford, CT (up 5 percent); Syracuse, NY (up 0.8 percent); Claremont-Lebanon, NH (up 0.8 percent); Warner Robins, GA (up 0.6 percent) and York, PA (down 0.6 percent).

No metro areas with a population of at least 1 million aside from Hartford saw total loan originations increase from the second to the third quarter of this year.

Refinance mortgage originations slump to lowest point since early 2019

Lenders issued 660,767 residential refinance mortgages in the third quarter of 2022 – the smallest count since the first quarter of 2019.

The latest number was down 31 percent from 957,515 in second quarter of 2022, 67.9 percent from 2,059,465 in the third quarter of 2021 and 75.3 percent from a peak of 2,680,523 hit in the first quarter of last year. It fell for the sixth straight quarter, the longest run of declines this century. The $212 billion dollar volume of refinance packages in the third quarter of 2022 was down 33 percent from $316.4 billion in the prior quarter and down 67.1 percent from $645.2 billion in the third quarter of 2021.

Refinancing activity decreased from the second quarter of 2022 to the third quarter of 2022 in 208, or 99 percent, of the 210 metropolitan statistical areas around the country with enough data to analyze. Activity dropped quarterly by at least 25 percent in 131 metro areas (62 percent). The largest quarterly decreases were in Myrtle Beach, SC (refinance loans down 62 percent); Buffalo, NY (down 59.4 percent); Salinas, CA (down 54.7 percent); Knoxville, TN (down 52.4 percent) and Charleston, SC (down 49.5 percent).

Aside from Buffalo, metro areas with a population of least 1 million that had the biggest decreases in refinance activity from the second quarter to the third quarter of this year were Washington, DC (down 46.9 percent); New York, NY (down 46 percent); Miami, FL (down 45.5 percent) and St. Louis, MO (down 45 percent).

The only metro areas where refinance lending increased from the second quarter to the third quarter were Sioux Falls, SD (up 11.4 percent) and Hartford, CT (up 3.2 percent).

Purchase mortgages decrease for fourth time in last five quarters

Lenders originated 943,242 purchase mortgages in the third quarter of 2022. That was down 15.6 percent from 1,116,939 in the second quarter – the fourth drop in the last five quarters. It also was down 32.7 percent from 1,401,578 in the third quarter of 2021 – the biggest annual decline this century. The $353.9 billion dollar volume of purchase loans in the third quarter of 2022 was down 18.9 percent from $436.2 billion in the prior quarter and down 28.4 percent from $494 billion a year earlier.

Residential purchase-mortgage originations decreased from the second quarter of 2022 to the third quarter of 2022 in 173 of the 210 metro areas in the report (82 percent) and dipped annually in 206 metro areas (98 percent).

The largest quarterly decreases were in Myrtle Beach, SC (purchase loans down 50.8 percent); Ogden, UT (down 47.6 percent); Naples, FL (down 41.8 percent); Charleston, SC (down 41.3 percent) and Knoxville, TN (down 40.1 percent).

Metro areas with a population of at least 1 million that saw the biggest quarterly decreases in purchase originations in the third quarter of 2022 were St. Louis, MO (down 30.3 percent); San Jose, CA (down 30.3 percent); San Francisco, CA (down 29.3 percent); Los Angeles, CA (down 28.6 percent) and Miami, FL (down 28.5 percent).

Residential purchase-mortgage lending increased most from the second quarter to the third quarter of 2022 in Syracuse, NY (up 24.9 percent); Claremont-Lebanon, NH (up 24.3 percent); Rochester, NY (up 20 percent); Dayton, OH (up 18.9 percent) and Kalamazoo, MI (up 15.7 percent).

Aside from Rochester, metro areas with a population of at least 1 million where purchase originations rose most from the second to the third quarter were Minneapolis, MN (up 11.9 percent); Hartford, CT (up 6.1 percent); Grand Rapids, MI (up 5.2 percent) and Pittsburgh, PA (up 0.5 percent).

HELOC lending up for fifth time in six quarters

A total of 364,921 home-equity lines of credit (HELOCs) were originated on residential properties in the third quarter of 2022, up 5.1 percent from 347,086 in the prior quarter and up 47.8 percent from 246,957 in the third quarter of 2021. HELOC activity increased for the fifth time in six quarters after it had decreased in each of the prior six quarters. The $70.5 billion third-quarter 2022 volume of HELOC loans was up 4.7 percent from $67.3 billion in the second quarter of 2022 and 47.5 percent from $47.8 billion in the third quarter of last year, hitting the highest point in four years.

HELOCs comprised 18.5 percent of all third-quarter 2022 loans – almost four times the 4.8 percent level from the first quarter of 2021.

“While HELOC activity has dramatically increased over the past few quarters, its growth rate slowed down significantly on a quarter-to-quarter basis, which raises the question of whether we might be at or near a cyclical peak in HELOC activity,” Sharga added. “Even with the recent increases, HELOC volume is still nowhere near the record level of activity we saw in the mid-2000s during the run-up to the financial crisis.”

The largest increases in metro areas with a population of at least 1 million were in New Orleans, LA (home-equity loans up 52.8 percent); Houston, TX (up 47.5 percent); Dallas, TX (up 35.4 percent); Tucson, AZ (up 32.8 percent); and Atlanta, GA (up 30.9 percent).

The largest quarterly decreases in HELOCs among metro areas with a population of at least 1 million were in Buffalo, NY (down 31.9 percent); St. Louis, MO (down 26.7 percent); Honolulu, HI (down 14.5 percent); San Jose, CA (down 10.9 percent) and Rochester, NY (down 9.1 percent).

FHA and VA loan portions tick upward

Mortgages backed by the Federal Housing Administration (FHA) rose as a portion of all lending for the fourth straight quarter, accounting for 224,021, or 11.4 percent, of all residential property loans originated in the third quarter of 2022. That was up from 10.7 percent in the second quarter of 2022 and 9.3 percent in the third quarter of 2021.

Residential loans backed by the U.S. Department of Veterans Affairs (VA) accounted for 103,314 or 5.2 percent, of all residential property loans originated in the third quarter of 2022. That was up from 5.1 percent in the previous quarter but still down from 6.3 percent a year earlier. VA lending as a portion of all loans rose after seven consecutive quarterly declines.

Typical amount borrowed to finance purchase decreases to three-year low

The median amount borrowed nationwide to buy a home went down in the third quarter of 2022 for the first time in three years, while the typical down payment on homes purchased with financing also decreased. At the same time, the ratio of median down payments to home prices went down.

Among homes purchased with financing in the third quarter of 2022, the median loan amount was $315,000. That was down 4.5 percent from $330,000 the prior quarter, following 10 straight increases. However, it was still up 4.2 percent from $302,197 in the same period in 2021. The median down payment on single-family homes and condos purchased with financing in the third quarter of 2022 decreased to $34,975, down 12.5 percent from $39,980 in the previous quarter, although still up 11.9 percent from $31,250 in the third quarter of 2021.

The typical down payment in the third quarter of this year represented 9.3 percent of the purchase price, down from 10.2 percent in the prior quarter but still up from 8.9 percent a year earlier.

Report methodology

ATTOM analyzed recorded mortgage and deed of trust data for single-family homes, condos, town homes and multi-family properties of two to four units for this report. Each recorded mortgage or deed of trust was counted as a separate loan origination. Dollar volume was calculated by multiplying the total number of loan originations by the average loan amount for those loan originations.

About ATTOM

ATTOM provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation’s population. A rigorous data management process involving more than 20 steps validates, standardizes, and enhances the real estate data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 30TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, property data APIs, real estate market trends, property reports and more. Also, introducing our newest innovative solution, that offers immediate access and streamlines data management – ATTOM Cloud.

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Do You Know What This Word Means? Understanding Terms Most Commonly Used in Hard Money Lending

There are so many words and acronyms used in lending, and the majority of people have never heard these terms before. Hard money lenders often utilize these words, taking for granted that everyone understands what they mean. Because most people have never worked in finance or lending they are confused by these terms.

As a private money broker, I make an effort to explain the meaning of the most common terms used in lending in order to avoid confusion. Below is a list of words and acronyms that most often make borrowers scratch their heads:

Glossary Of Terms

Gap loan – A loan used to bridge a gap between what one lender is lending a borrower in a first lien position, and what the borrower has in cash on hand. Not the same as a “bridge” loan.

Interest only loan – A loan whereby only payments are made toward interest, no payments are made toward the principal balance of the loan

30 year amortization – A loan whereby payments are calculated over a term of 30 years. Payments are made toward both interest and principal. At the end of the term, the loan is paid in full.

OO – Stands for, “Owner Occupied.” This is a property that is to be occupied by the property owner.

NOO – Stands for, “Non Owner Occupied.” This is a property that is to be occupied by someone else other than the property owner.

LTV – Stands for, “loan to value.” This is a ratio used to calculate the percentage of the loan amount as a percentage of the property value. For example, if a lender’s max loan to value is 80%, the max the lender will lend on a property is 80% of the property value.

ARV – Stands for, “After repair value.” This is the future value of a property after it has been repaired and/or improved.

Loan term – The length of time one has a loan, for example one year, ten years, or 30 years.

Maturity date – The end of the loan term, or the date the loan is due.

Points – Loan fees quoted as a percentage of the loan amount. Example: 1 point = 1% of the loan amount. Basis points – loan fees quoted as a percentage of 1%. Example: 25 basis points = 25% of 1%

Proof of funds – This is an account statement showing a dollar amount to satisfy a seller of a property that a buyer has funds needed to purchase a property. Can also be a letter provided by a lender to show a buyer/borrower has available funds to purchase or refinance a property

Use of Funds – What are the funds being used for?

Exit Strategy – What is the plan for paying the loan off?

Lien – Any claim against the property. A loan against the property is a lien. Other liens include mechanics liens, tax liens, etc. Also, called encumbrance. 1^st lien position, 2^nd lien position are terms also frequently used.

PPP – Prepayment penalty – This is a penalty charged for paying a loan off before the maturity date.

If you have questions about any of the terms listed above, please comment below.

Business grants for your minority-owned business will get you access to free financing.

Minority business owners face challenges when starting or expanding a small business, including access to affordable small-business loans. Business grants and financial assistance can help bridge the funding gap.

Here are some of the best small-business grants and other useful financing resources for minority-owned businesses. NerdWallet also has compiled a list of the best small-business loans for minorities.

1. Grants.gov

Grants.gov allows grant seekers to find and apply for federal funding opportunities. It contains information on more than 1,000 grant programs across federal grant-making agencies, including the Department of Commerce and the U.S. Small Business Administration.

To apply for federal grants, you must obtain a DUNS number from Dun & Bradstreet (a unique nine-digit identification number) for your business; register to do business with the U.S. government through its System Award Management website; and create an account at Grants.gov.

2. The USDA Rural Business Development Grant Program

This is a USDA grant for the development or expansion of small businesses in rural areas — minority-owned or not. To qualify, you’ll need to have 50 or fewer new employees, less than $1 million in gross revenue and be located in an eligible rural area.

Grants can be used for a variety of purposes, including training and technical assistance, acquisition or development of land and long-term business planning. Applications are accepted through the USDA’s Rural Development’s state offices once per year.

3. National Association for the Self-Employed

This nonprofit trade association provides educational resources and grants for small businesses and entrepreneurs. To apply for a grant of up to $4,000, you’ll need to become an active member of the association, provide a detailed explanation of how you’ll use the funds, show how the grant will support your business growth, and provide supporting documentation.

4. FedEx Small Business Grant Contest

The FedEx Small Business annual grant contest awards 12 small businesses with grants of up to $50,000. Any for-profit small business with a shipping need is eligible to enter, provided it has been operating for at least six months and has fewer than 99 employees when the annual contest starts.

5. Small Business Innovation Research and Small Business Technology Transfer Programs

These two small business programs provide contracts and grants for early-stage small businesses that are looking to commercialize innovative research and development.

6. Minority Business Development Agency

This development agency of the U.S. Department of Commerce promotes the growth of minority-run small businesses by connecting owners to financing resources, federal contracts and market opportunities. You can contact a local MBDA business center for more information.

7. National Minority Supplier Development Council

The council is a corporate member organization focused on increasing business opportunities for certified minority-owned businesses. It operates the Business Consortium Fund, a nonprofit business development program, which offers financing programs and business advisory services for its members.

8. SBA 8(a) Business Development Program

Socially or economically disadvantaged small-business owners are eligible to receive help through this SBA 8(a) program, which provides business development assistance, training, and management and technical guidance.

To qualify, a small business must be at least 51% owned and controlled by a citizen who has been subjected to cultural bias or prejudice and placed at an economic disadvantage because of race or ethnicity. Here is a list of eligibility requirements.

9. Operation Hope Small-Business Empowerment Program

The Operation Hope program is designed for aspiring entrepreneurs in low-wealth neighborhoods, which often include minority communities. The program combines business training and financial counseling along with access to small-business financing options. Participants complete a training program, plus workshops on business financing and credit and money management.

10. Fast Break for Small Business

This $6 million grant program is a partnership among LegalZoom, the NBA, WBNA, and NBA G League. Businesses can receive grant money and LegalZoom services. Accion Opportunity Fund is the nonprofit administrator of the program.

https://www.nerdwallet.com/article/small-business/small-business-grants-minorities?utm_medium=marketing-email&utm_source=sent_09-28-22_ALL_FunderaNewsletter_small-business-grants-minorities&utm_campaign=other&utm_content=version-A_type-button

If you feel ready to enter the niche market of commercial real estate investing, now is the perfect time to develop an understanding of commercial real estate financing basics to determine if this unique industry is a good fit for you. Use the information below as your commercial real estate financing basics guide, and before you know it, you’ll have a better understanding of how commercial property loans differ from residential loans, the different types of loans and lenders that are available, and a broad overview of how commercial real estate financing works.

What Are Commercial Property Loans?

Commercial property loans are mortgages specifically delegated to purchasers of commercial properties.

Properties are considered commercial if they produce income and are used for business purposes only. A common example of a commercial property is a retail or an office space through which a business is operated. To acquire such a property, an investor can select from several commercial real estate financing options, but should be prepared to guarantee the mortgage via a lien, or more simply, collateral. If the investor fails to meet the commercial property loan’s repayment terms, the creditor reserves the right to seize the property. Experts at HostPapa suggest that “developers, trusts, funds, and corporations are the most common recipients of commercial real estate loans. The loan terms span from 5 to 20 years, with an amortization period that is longer than the loan duration”.

It is also important to note that commercial property loans are made out to business entities and not individuals. In other words, financing commercial real estate usually requires the formation of a business entity, such as an s-corporation or a limited liability company.

Anthony Martin, the founder of Choice Mutual, says that “the main difference between residential and commercial loans is what they’re for. For example, commercial loans are for business properties, multiple investment properties (surpassing 5 -10–depending on the lenders you had before), and other specialty properties. In contrast, residential properties are meant for personal properties”.

Commercial vs. Residential Loans

While residential loans are typically assigned to individual borrowers, commercial loans are typically granted to business entities. Residential loans require high loan-to-value ratios of up to 100%, while commercial loan-to-value rations range within 65% – 80%. In addition, commercial loans range from 5 to 20 years, while the most popular residential loan is a 30 year fixed mortgage. 

Commercial Real Estate Financing Options

Understanding commercial real estate financing basics requires a working knowledge of existing commercial property financing options, and being able to identify which option might work best for you. Commercial property loans will not only help finance the property, but can also help fund any construction projects as needed. Also, investors can leverage commercial property financing to help keep properties fully operational and maintained so that they may be fully leased.

The following are several commercial real estate financing options that are offered by various financial entities, including banks, private lenders, insurance companies, pension funds, and the U.S. Small Business Administration:

The following are several commercial real estate financing options that are offered by various financial entities, including banks, private lenders, insurance companies, pension funds, and the U.S. Small Business Administration:

• SBA 7A Loan: The U.S. Small Business Administration (SBA) offers some of the least expensive loans for investing in commercial real estate and guarantees repayment of a portion of the loan. SBA-backed loans help the borrower by increasing credibility and reducing risk for the lender. 7A loans work best for smaller projects and are the quickest and easiest of the SBA loan programs. Although 7A loans have slightly higher interest rates than SBA 504 loans, they are the SBA’s most popular loan option.
• SBA 504 Loan: As mentioned above, loans backed by the Small Business Administration are favored by lenders. The 504 loan program works best for larger investment projects, such as those valued over $1 million. The investor must put down 10 percent of the loan amount as the down payment, while 40 percent of the loan is sourced from an SBA Certified Development Company. The remaining 50 percent is borrowed from the lender.
• Conventional Bank Loan: A majority of commercial real estate loans are made by banks, who prefer to lend to entities with strong credit histories. Individuals with a credit score of at least 660 and are working with mid-to-large-sized projects will find conventional bank loans as a viable commercial real estate financing option. Bank loans offer competitive interest rates and do not require the property to be occupied by the owner. However, most bank loans require a 20 percent down payment and oftentimes will charge a penalty if the loan is paid off early.
• Hard Money Loan: For investors looking for a quick solution to commercial real estate financing may look to a hard money loan. Hard money lenders usually offer short-term loans at high-interest rates, and evaluate the loan based on the perceived value of the property and not on the borrower’s credit history. Investors will often utilize hard money loans to quickly finance deals in the interim while negotiating a longer-term bank loan. Because of this, hard money loans are also referred to as “bridge loans.”
• Online Marketplace Loan: Sometimes referred to as “soft money loans,” online marketplaces now help to match borrowers with private investors who help finance commercial properties for a return. This type of loan is referred to as a soft money loan because interest rates are still higher than conventional bank loans but are lower than loans from hard money lenders. Online marketplaces usually match borrowers with shorter-term loans ranging from six months to a few years.
• Joint Venture Loan: In cases in which an investor cannot obtain commercial real estate financing, or in cases where it is unappealing to bear risk solely, pursuing a joint venture may be the best option. Two or more properties can apply for financing via a joint venture loan, and involved parties will equally share the risks and returns in the commercial property. The joint venture loan ties the parties together solely around the specific property and does not require the entities to enter into a true real estate partnership.

How Do Commercial Real Estate Loans Work?

Commercial real estate loans work differently from residential loans in that they are solely utilized to finance income-producing properties through which businesses are operated. While individual borrowers can apply for traditional residential loans, investors normally have to establish a business entity, such as an LLC, to qualify for a commercial real estate loan. To secure the loan request, lenders will also require commercial property borrowers to put up the property as a lien or collateral. If the borrower were to ever default on their mortgage payments, the lender could seize the commercial property.

Creditworthiness is a common factor between commercial property loans and residential loans. Still, lenders will also closely examine the property’s potential income production when deciding whether to approve a loan request when it comes to commercial real estate.

Although commercial real estate loans may be associated with a higher risk than residential mortgages,lenders are incentivized by the potential revenue to be made off of commercial properties. For example, properties that can serve as a hotel, event venue, or house multiple businesses promise to attract wealthy tenants. In return, lenders can expect to earn a portion of the revenue made by commercial property tenants.

How Can I Get A Loan For A Commercial Property With No Money Down?

You can get a loan for a commercial property with no money down by utilizing a variety of financing methods, such as a purchase money mortgage, an investing partner, or a hard money lender. Investors who have focused their careers on residential real estate may have shied away from commercial properties simply due to the perception that the associated risks and costs are great or that the down payment is prohibitive. However, by familiarizing themselves with commercial real estate financing basics, investors should find that commercial properties are not inaccessible.

Suppose an investor cannot afford the down payment required by certain commercial real estate financing options. In that case, they can find an investing partner who is willing to provide the funds required to qualify for a loan, such as a traditional bank loan. However, it should be noted that the property should promise attractive returns for the investment to be considered worthwhile for a partner.

Another viable option is going through a hard money lender. Bridge loans can help investors secure short-term funding for a down payment so that they may negotiate a longer-term loan through a more traditional lender. However, borrowers should beware that hard money lenders usually provide loans with high-interest rates.

Finally, investors can also explore purchase money mortgages as a possible way to finance a commercial deal with no money down. Also known as seller-financed deals, purchase money mortgages come into play when a seller is willing to offer a loan directly to the borrower to purchase the property. This option can benefit both parties, as flexible repayment terms and rates can be negotiated. However, the borrower will risk repossession by the seller if they fail to make mortgage payments.

What Is The Interest Rate On Commercial Real Estate?

The interest rate on commercial real estate varies significantly based on the type of loan that the borrower chooses to elect. Loans backed by the Small Business Association tend to have the lowest interest rates. For example, the SBA 7A interest rate varies between 5.5 and 6.75 percent, while the 504 loan ranges between 3..5 to 6 percent. Conventional bank loans offer fixed or variable interest rates, typically between the 5 to 7 percent range. Hard money loans from private investors come in with the highest interest rates on the market, typically between 10 to 18 percent. Hard money loans can be fixed or variable and have the shortest loan terms.

Recouse Vs. Non-Recourse Loans

As mentioned above, commercial loans will need to be secured with collateral. There are two main routes to take: recourse or non-recourse loans. A recourse loan, more commonly called a personal guarantee, is when an investor uses other assets as collateral for the debt. For example, the loan could be secured with a personal liability that if the property goes out of business you will make monthly repayments. 

Alternatively, many commercial loans are secured by the properties themselves through a non-recourse loan. If the borrower defaults on a non-recourse loan, the lender can seize the asset itself. According to the terms of this loan, the lender can not secure additional money or assets from the borrower. 

It may sound preferable to choose a non-recourse loan, but depending on how long you have been in business the lender may require another form of collateral. If you are a new real estate investor or have a less than stellar financial background, the lender may need additional security before financing the property. Speak with your preferred lender to evaluate your options in regards to recourse vs. non-recourse loans. 

Loan Repayment Terms

Commercial real estate financing repayment periods commonly range from 5 to 20 years. The amortization period is usually longer than the term of the loan. For example, if you have a commercial loan for a term of 10 years with an amortization period of 30 years, you would make payments for 10 years of an amount based on the loan being paid off over 30 years, followed by a final payment of the entire remaining balance on the loan.

How long the commercial real estate loan term is and the amortization period affects the rate the lender will charge you. Depending on your credit, commercial real estate financing terms can be negotiable. Keep in mind that the longer the loan, the higher the interest rate will be.

Important Loan Ratios

In determining commercial real estate financing, lenders consider the loan-to-value ratio (LTV) and the debt-service coverage ratio (DSCR). It is important to know these ratios as they will determine your financing rates and loan size. Here is a brief overview of the two ratios:

• Loan-To-Value-Ratio: The loan-to-value ratio (LTV) measures the value of a loan against the value of the property. LTV is calculated by dividing the amount of the loan by its purchase price. For example, the LTV for a $80,000 loan on a $100,000 property would be 80% since $80,000 ÷ $100,000 = 0.8.Those with lower LTVs will qualify for better financing rates for commercial real estate loans than borrowers who have higher LTVs. With more equity in the property, it is less risky, according to the lender.
• Debt-To-Service-Ratio: The debt-service coverage ratio (DSCR) compares a property’s annual net operating income (NOI) to its annual mortgage debt service. The ratio measures the property’s ability to service its own debt. You calculate the DSCR by dividing the NOI by the annual debt service.For example, a property that has $100,000 in NOI and $80,000 in annual mortgage debt service would have a DSCR of 1.25 since $100,000 ÷ $80,000 = 1.25. The DSCR will influence your lender’s maximum loan size, which will be based on the property’s cash flow.A DSCR should be more than 1; otherwise, the property has negative cash flow. For example, a DSCR of .9 means that there is not enough (only 90%) in NOI to cover annual debt service. Commonly, commercial real estate lenders seek a higher DSCR to ensure cash flow.

Commercial Real Estate Financing Calculator

To calculate a commercial real estate financing scenario, an investor will need to obtain the possible loan amount, interest rate, amortization term, and any balloon payments if applicable. The loan amount represents the total principal on the commercial loan, while the interest rate varies greatly depending on the lender type. Commercial loan terms typically range between five to 20 years, whereas the amortization period can be longer than the loan term. The balloon payments come into play when the borrower makes payments throughout the duration of the loan term but is then required to make a final payment on any outstanding amount on the principal. Although this may sound extremely complicated, luckily, there are many online financing calculators available, such as on Mortgage Calculator.

5 Best Banks For Commercial Real Estate Loans

If you decide to pursue a commercial real estate loan through a conventional bank, you will likely become overwhelmed at the number of options. Just like residential real estate loans, there are a mix of online and brick-and-mortar banks to choose from — each offering unique pros and cons to help you decide. Deciding on a loan provider will come down to your own personal finances and business goals. That being said, here are five of the best banks for a commercial loan to help you get started: 

• U.S. Bank: U.S. Bank offers several types of commercial loans, including small business loans. Interest rates vary between five and seven percent, with variable and fixed options. Many investors choose U.S. Bank for long-term commercial financing needs and for occupied properties. U.S. Bank has physical branches in 26 states but offers mortgages nationwide.
• Wells Fargo: Wells Fargo is a great option for investors looking to avoid a “years in business” requirement when applying for a commercial loan. With loan terms up to 20 years for larger projects, Wells Fargo offers a number of different options. Average interest rates are between five and 10 percent and the target loan-to-value ratio is roughly 80 percent.
• JPMorgan Chase: JPMorgan Chase advertises itself as the leading multifamily loan provider, with a maximum loan of up to $25 million on multifamily projects. A property must have at least five units to be considered multifamily. There is no time in business requirement, and interest rates range from five to nine percent.
• Bank Of America: Bank of America offers commercial financing, and additional options for remodeling down the road. Their website boasts interest rates as low as three percent; and loan terms can range from 10 to 15 years. Bank of America also offers loan origination discounts for Veterans.
• SmartBiz: If you are in the market for an SBA7(a) commercial loan, consider SmartBiz for your next project. Interest rates range between 4.7 and 7 percent, and down payment requirements are between 10 an 30 percent of the purchase price. Note that SmartBiz is an entirely online loan provider.

Summary

With these commercial real estate financing basics in mind, investors should feel better equipped to approach their first commercial deal. Commercial real estate is a unique niche that differs greatly from traditional residential real estate and should not be taken lightly. However, those who feel prepared to tackle this sector of the real estate industry have the potential to enjoy a unique experience and an equally unique set of rewards.

The term “hard money loan” refers to a type of loan that is backed by a “hard” asset, such as real estate. If you’re a real estate investor or house flipper and you need financing for a deal, a hard money loan might be a good option for you to explore.

But as a real estate investing coach who often helps clients navigate the hard money transaction process, I know it’s important to first understand the ins and outs of these loans before making a final decision.

What is ‘hard money?’

Hard money is a type of lending often used in real estate investing. Hard money loans are also known as asset-based loans, bridge loans or STABBL loans (short-term asset-backed bridge loans). Hard money loans are used for short-term financing, and the loans are always secured by an asset. Traditional financial institutions don’t offer hard money loans, so this lending option is only available through private lenders and individual investors. 

As I mentioned above, hard money loans are often used by real estate investors, house flippers and real estate developers. These types of loans can be a quicker and easier way to secure an investment purchase without the need for traditional financing or the approval process that is required by typical financial institutions. Since these types of loans are asset-based, they are not contingent on the borrower’s creditworthiness. 

The purpose of using these types of loans is to secure a property to renovate or develop and ultimately sell it for a profit. An investor might choose a hard money loan over a conventional loan because of the ease of access to the funds. Lending options from financial institutions often have complicated approval processes and weigh heavily on the borrower for approval. Hard money loans are asset-based and typically secured by a mortgage, so their approval process is much faster. In my experience, lenders will review the subject property and can make a lending decision within days.

That being said, these loans are not always the best choice for everyone. Understand that when you acquire a hard money loan, you’ll be paying a premium for the convenience. Not only do these types of loans carry higher percentage points than traditional loans, but they may also come with additional costs and fees. The closing costs on your investments are likely to be more with a hard money transaction as well.

Another downside to consider is the shortened repayment period. Hard money loans are often contingent on a quick return on investment for the lender. This means they rarely exceed 24 months and, in many cases, are required to be repaid in eight to 12 months. For an investor, it’s important that you account for the added costs and shortened time frame when you conduct the analysis of your investment purchases to ensure hard money is a viable option.

What are points and interest rates on hard money?

Hard money lenders typically charge fees to the borrower for providing the loan. These fees are called “points.” Points on a hard money loan are generally equal to one percentage point of the loan but can range anywhere from 2% to 4% of the total amount loaned. Interest rates on a hard money loan can vary greatly depending on the lender and the deal. I’ve found most lenders will provide loans with a fixed interest rate; however, in some cases, you might be able to negotiate a floating rate. Traditionally, hard money loans carry an interest rate of 10% to 15%, depending on the lender and calculated risk of the loan.

What are the borrower requirements for hard money loans?

Hard money loans are supplied by private individuals and companies, so the loan requirements can vary greatly between lenders. However, since the borrower often deals closely with, or directly with, the lender, there’s often much more room to negotiate terms. If it’s your first time requesting a loan, you’ll likely have a harder time getting approved and might need to supply additional information that a veteran investor would not have to supply. In consideration for a hard money loan, most lenders will review the borrower’s investment history, verify the property values for the asset in question and, under normal circumstances, require a 30% to 40% down payment to secure the loan.

Conclusion

Hard money loans can be an excellent way to secure a real estate investment. Real estate investors, house flippers, developers and rehabbers use hard money loans because it’s a quick and easy way to secure financing. Compared to a conventional loan, the interest rates are higher, but the higher rate is offset by the fact that the borrower can access the funds much faster and the loan is based primarily on the asset being purchased rather than the borrower’s personal approval or credit. When looking for a hard money lender, ensure you find a reputable company with a long and trustworthy track record in the industry.

The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.

https://www.forbes.com/sites/forbesbusinesscouncil/2021/05/12/what-is-hard-money-in-real-estate-investing-and-how-does-it-work/?sh=3c0771cc33d7

Our research team releases regular monthly housing trends reports. These reports break down inventory metrics like the number of active listings and the pace of the market. In addition, we continue to give readers more timely weekly updates, an effort that began in response to the rapid changes in the economy and housing as a result of the COVID-19 pandemic. Generally, you can look forward to a Weekly Housing Trends View and the latest weekly housing data on Thursdays with a weekly video update from our economists on Fridays. Here’s what the housing market looked like over the last week.

What this Week’s Data Means:

For the first time in two years, weekly data show that homes aren’t selling faster than in the prior year. They’re not yet taking longer to sell, but if recent trends continue, an increase in the time a home sits for sale is on the horizon. Low time on market signals ample demand from buyers relative to what’s for sale and it’s one of many factors that boost seller confidence that they will be able to sell their home at a good price in a reasonable amount of time. 

Although home prices have not retreated, homeowners seem to be aware of the shifting market dynamic, and it may already be affecting their willingness to sell. For the third consecutive week fewer homeowners decided to list their homes for sale. This has moderated the gains in active for-sale inventory, but fortunately for shoppers, the number of options available continue to climb. 

As inflation continues to exceed expectations, data show that the Fed’s policy adjustment, which continued at the July meeting in which another 75 basis point hike was announced, is cooling housing demand. The pace of new and existing home sales both moved lower in June and the forward looking pending home sales data suggests further cooling on the horizon.

Key Findings:

• The median listing price grew by 16.6% over last year. The typical asking price of for-sale homes was up from last year by double-digits for a 32nd week.  Even though asking prices continue to climb, with the median hitting a new high of $450,000 in June, data show that more sellers are finding that buyers are unwilling or unable to match their initial price in this market. As we noted in our June Housing Trends Report, the share of listings with a price cut was nearly double its year ago level even as it remains well below pre-pandemic levels. 
• New listings–a measure of sellers putting homes up for sale–were down 6% from one year ago.  This week marks a third year over year drop in the number of new listings coming up for sale, suggesting that some homeowners may already be reacting to the rebalancing market. After several years of unquestionably calling the shots, sellers face a new market position. However, record-high levels of home equitymean that sellers remain in a good position.  
• Active inventory continued to grow, rising 30% above one year ago. With fewer owners choosing to sell now, gains in the number of options for shoppers have moderated. Still, the improvement for buyers essentially means they have four choices today for every three they had one year ago. Despite the improvement, our June Housing Trends Report showed that the active listings count remained less than half its June 2019 level and just shy of two-thirds its June 2020 mark. Put another way, today’s shoppers have more options, but the market needs even more before the selection is on par with the pre-pandemic or even the early-pandemic housing market.
• Homes spent the same amount of time on the market as at this time last year. This week’s data show that as for-sale inventory increases, the time on market gap relative to last year has closed. As recently as February 2022, the Realtor.com Housing Trends report showed that homes sold more than two weeks faster than in the previous year. The June Housing Trends Report showed that although homes spent 4 fewer days on the market than one year ago, they sat for slightly longer than in May stemming from seasonal and cyclical cooling. While time on market has yet to meaningfully increase, its current trend is one that should eventually help alleviate buyers’ sense that they need to rush to make an offer.

Data Summary:

All Changes year-over-year	Year-to-Date 2022	Week ending July 9, 2022	Week ending July 16, 2022	Week ending July 23, 2022
Median Listing Prices	+14.7%	+15.9%	+16.6%	+16.6%
New Listings	-0%	-6%	-3%	-6%
Active Listings	-4%	+28%	+29%	+30%
Time on Market	7 days faster	1 day faster	1 day faster	0 days faster

Weekly Housing Trends View — Data Week Ending July 23, 2022

• The inventory of homes for sale increased again in June, the largest increase in the data’s history.
  • The national inventory of active listings increased by 18.7% over last year, while the total inventory of unsold homes, including pending listings, still declined by 1.4% due to a decline in pending inventory. 
  • The inventory of active listings was down 34.1% compared to June 2020 in the early days of the COVID-19 pandemic, and down 53.2% compared to June 2019. In other words, there are a little less than two-thirds the number of homes available compared to June 2020, and less than half compared to June 2019. 
• More new listings entered the market in June compared to last year, though slightly down from May new listing growth.
  • Newly listed homes were up 4.5% nationally compared to a year ago, and up 3.1% for large metros over the past year. 
  • Sellers listed at roughly the same rate as 2017 to 2019, prior to the pandemic, up slightly by 1.0%. 
• Housing remains expensive and fast-paced with the median asking price at a new high while time on market is up just one day from last month’s record low.
  • The June national median listing price for active listings was $450,000, up 16.9% compared to last year and up 31.4% compared to June 2020. 
  • In large metros, median listing prices grew by 13.3% compared to last year, on average. 
  • Nationally, the typical home spent 32 days on the market in June, down 4 days from the same time last year and down 37 days from June 2020.

Realtor.com®’s June housing data release shows a continued improvement in housing inventory for the second month, with the count of home listings actively for sale growing compared to last year by the largest margin in the data’s history. This turnaround in inventory is being driven by both sellers entering the market and by moderating demand. Newly listed homes entered the market at a higher rate (+4.5% year-over-year) than in the recent past, though slightly slower compared to May, when newly listed homes increased by 6.3% year-over-year. Moderating demand has taken a larger toll this month, with pending listings declining sizably (-16.3% year-over-year) compared to last year. Nonetheless, homes are still spending less time on the market compared to last year and prices are still rising, partially driven by an increase in newly listed larger homes and slow adjustments to seller expectations. 

Inventory Sees Growth Amidst Moderating Demand

Nationally, the inventory of homes actively for sale on a typical day in June increased by 18.7% over the past year, the largest increase in inventory in the data history. This amounted to 98,000 more homes actively for sale on a typical day in June compared to the previous year. While overall active housing inventory grew year-over-year, the inventory of condos (along with other attached home types) listed for sale shrank by -0.2%. Condos, which made up 20.2% of listings in June, tend to be lower-priced than single-family homes (17.5% cheaper on average in the 50 largest metro areas in June 2022) and have therefore gained popularity in high-priced locales as single-family home prices have climbed in recent years. The total number of unsold homes nationwide—a metric that includes active listings and listings in various stages of the selling process that are not yet sold—was still down 1.4% percent from June 2021. However this has improved from last month’s 3.9% decline.  

The lagged improvement in the total number of homes for sale is due to moderating buyer demand, spurred by rising interest rates and all-time high listing prices that have increased the cost of financing 80% of the typical home by 57.6% ($745 per month) compared to a year ago. The number of pending listings on a typical day (listings that are at various stages of the selling process that are not yet sold), has declined by 16.3% compared to last June, indicating that a moderation in demand is also softening the rate of turnover in inventory. This is a further deceleration from the 12.6% annual decline we reported for May. For homebuyers who are still actively searching for a home, lower competition and more seller activity will provide some relief.  

In June, newly listed homes increased above last year’s levels by 4.5%, slightly down from May’s 6.3% increase. Sellers were listing at rates similar to what was typical of 2017 to 2019 June levels but have increased by 1.0% from what was typical in June 2017 to 2019. 

The inventory of homes actively for sale in the 50 largest U.S. metros overall increased by 27.9% over last year in June. The inventory of homes in large Northeastern metros was slightly higher (+3.2% year-over-year) compared to last year while other regions saw stronger growth. In the West, active listings grew most (by +52.3% year-over-year), followed by the South (+37.5%), and Midwest (+6.2%). Large Southern metros saw new listings increase by an average of 11.0% compared to last year, while northeastern and midwestern metros saw a decrease in new listings (-6.0% and -4.4%, respectively) compared to last year. New listings in the West grew more modestly by 2.8% compared to last year.

Inventory increased in 40 out of 50 of the largest metros compared to last year. Metros which saw the most inventory growth include Austin (+144.5%), Phoenix (+113.2%), and Raleigh (+111.7%), all of which experienced booming demand during the pandemic. Inventory is still declining on a year-over-year basis in 10 markets, with Miami (-15.9%), Virginia Beach (-14.4%), and Chicago (-13.0%) still seeing the largest declines. 

Half of the 50 largest metros also saw the number of newly listed homes increase compared to last year, down from 30 in May. The markets which saw the highest year-over-year growth in newly listed homes included southern metros such as Raleigh (+7.6%), Nashville (+37.2%) and Charlotte (+30.1%), as well as Las Vegas (+34.8%). Markets which are still seeing a decline in newly listed homes compared to last year include San Jose (-19.5%), Milwaukee (-18.7%), and Baltimore (-18.5%). 

Some Metros Are Seeing Time on Market Increase, but in Most Homes Are Still Selling More Quickly

The typical home spent 32 days on the market this June which is 4 days less than last year. Homes spent 27 fewer days on the market than typical June 2017 to 2019 timing. 

In the 50 largest U.S. metros, the typical home spent 28 days on the market, and homes also spent 2 fewer days on the market, on average, compared to June 2021. Among these 50 largest metros, the time a typical property spent on the market decreased most in large metros in the South (-4 days), followed by the Northeast and West (-2 days), and the Midwest (-1 day). 

Ten of the 50 largest metros saw time on market increase compared to the previous year, and six saw no change in time on market year-over-year. Among these larger metropolitan areas, homes saw the greatest yearly decline in time spent on market in Miami (-22 days), and Hartford (-8 days). Atlanta, Jacksonville and Orlando all tied with the typical home spending 7 fewer days on the market than the previous year. Austin saw time on market increase the most, by 6 days, while Denver and Detroit tied with the typical home in each of these metros spending 4 more days on the market than the previous year.

Listing Prices Are Still Rising, Newly Listed Homes Are Larger

The median national home price for active listings grew to a new all-time high of $450,000 in June. This represents an annual growth rate of 16.9%, a slight deceleration from last month’s growth rate of 17.6%. However, the median listing price for a typical 2,000 square-foot single family home rose 21.6% compared to last year, similar to last month’s 21.5% increase. 

Given growing supply and softness in sales and pending listings, the median listing price deceleration is signaling that seller expectations may be beginning to adjust to shifting market conditions. However, the slight price deceleration relative to the sizable (-16.3%) decrease in pending listings (signifying reduced demand) suggests that the median list price is impacted by other factors in addition to demand. The share of newly listed smaller homes (up to 1750 square feet) declined from 47.3% last June to 45.7% this June, while the share of homes larger than 1750 square feet increased from 52.7% to 54.3%. Because of these newly listed homes, larger, more expensive homes make up a bigger share of what’s for-sale this year than last year, leading to slower price deceleration than expected based on softening demand. In addition, the median list price of listings in pending status–those homes for which the seller has already accepted a buyer’s offer to purchase–decelerated, from a year-over-year rate of 16.2% in May to a growth rate of 13.9% in June. This indicates that the homes which buyers are choosing to buy tend to be less expensive, and also suggests that sellers have started to adjust their expectations to market conditions. 

There are ongoing signs of this price adjustment. The share of homes having their price reduced increased from 7.6% last June to 14.9% this year, but still remains 3.2 percentage points below typical 2017 to 2019 levels. All but one of the largest 50 metros saw an increasing share of price reductions in June.

Active listing prices in the nation’s largest metros grew by an average of 13.3% compared to last year. Miami (+40.1%), Orlando (+30.6%), and Nashille (+30.6%), posted the highest year-over-year median list price growth in June, though all saw a deceleration in year-over-year growth compared to May. Large western metros saw the greatest increase in the share of price reductions (+14.3 percentage points), followed by southern metros (+7.7 percentage points). Homes in Austin (+24.7 percentage points), Phoenix (+22.2 percentage points) and Las Vegas (+20.1 percentage points) showed the greatest growth in the share of homes with price reductions compared to last year. 

June 2022 Regional Statistics (50 Largest Metro Combined Average)

Region	Active Listing Count YoY	New Listing Count YoY	Median Listing Price YoY	Median Listing Price Per SF YoY	Median Days on Market Y-Y (Days)	Price Reduced Share Y-Y (Percentage Points)
Midwest	6.2%	-4.4%	9.7%	8.7%	-1 day	3.5%
Northeast	0.3%	-6.0%	4.7%	7.8%	-2 days	3.2%
South	37.5%	11.0%	18.8%	16.6%	-4 days	7.7%
West	52.3%	2.8%	13.2%	11.9%	-2 days	14.3%

June 2022 Housing Overview by Top 50 Largest Metros 

Metro	Median Listing Price	Median Listing Price YoY	Median Listing Price per Sq. Ft. YoY	Active Listing Count YoY	New Listing Count YoY	Median Days on Market	Median Days on Market Y-Y (Days)	Price Reduced Share	Price Reduced Share Y-Y (Percentage Points)
Atlanta-Sandy Springs-Roswell, Ga.	$445,000	12.7%	13.5%	23.4%	5.6%	26	-7	14.0%	7.6%
Austin-Round Rock, Texas	$620,000	18.7%	15.7%	144.5%	26.6%	22	6	32.4%	24.7%
Baltimore-Columbia-Towson, Md.	$365,000	6.6%	5.6%	1.2%	-18.5%	32	0	13.3%	4.1%
Birmingham-Hoover, Ala.	$295,000	8.4%	11.4%	25.5%	1.0%	33	-4	11.0%	5.1%
Boston-Cambridge-Newton, Mass.-N.H.	$759,000	8.6%	2.7%	0.4%	-5.0%	21	-2	15.2%	4.8%
Buffalo-Cheektowaga-Niagara Falls, N.Y.	$245,000	-2.0%	3.2%	12.8%	-0.3%	23	-2	7.0%	2.2%
Charlotte-Concord-Gastonia, N.C.-S.C.	$445,000	14.2%	15.1%	36.7%	30.1%	29	2	13.1%	3.5%
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.	$365,000	2.8%	1.7%	-13.0%	-11.4%	30	-4	12.0%	2.6%
Cincinnati, Ohio-Ky.-Ind.	$330,000	-5.7%	2.9%	4.6%	1.1%	28	-4	9.2%	2.2%
Cleveland-Elyria, Ohio	$225,000	2.7%	7.5%	-1.7%	-2.0%	36	1	10.2%	2.5%
Columbus, Ohio	$350,000	16.7%	13.7%	11.6%	-1.5%	17	2	12.9%	3.6%
Dallas-Fort Worth-Arlington, Texas	$486,000	25.5%	20.1%	61.6%	27.6%	24	-5	16.9%	10.2%
Denver-Aurora-Lakewood, Colo.	$680,000	13.3%	5.7%	58.3%	2.4%	15	4	21.3%	14.8%
Detroit-Warren-Dearborn, Mich.	$285,000	2.0%	5.5%	18.2%	-0.3%	24	4	17.1%	6.8%
Hartford-West Hartford-East Hartford, Conn.	$375,000	10.9%	21.4%	N/A	-12.5%	21	-8	6.5%	-0.7%
Houston-The Woodlands-Sugar Land, Texas	$399,000	9.1%	10.3%	10.1%	1.7%	33	-4	15.6%	7.0%
Indianapolis-Carmel-Anderson, Ind.	$320,000	15.5%	13.8%	22.3%	10.6%	30	-6	13.2%	4.2%
Jacksonville, Fla.	$450,000	28.6%	26.0%	38.3%	5.2%	30	-7	14.1%	8.0%
Kansas City, Mo.-Kan.	$400,000	20.5%	13.9%	27.5%	2.0%	39	1	8.4%	1.8%
Las Vegas-Henderson-Paradise, Nev.	$499,000	24.9%	24.4%	45.2%	34.8%	25	-1	30.6%	20.1%
Los Angeles-Long Beach-Anaheim, Calif.	$975,000	2.1%	6.4%	20.1%	-1.9%	29	-5	15.1%	9.3%
Louisville/Jefferson County, Ky.-Ind.	$300,000	8.1%	8.8%	21.9%	1.1%	23	0	14.2%	5.8%
Memphis, Tenn.-Miss.-Ark.	$307,000	28.5%	31.0%	33.1%	6.4%	32	-4	10.0%	4.6%
Miami-Fort Lauderdale-West Palm Beach, Fla.	$630,000	40.1%	24.5%	-15.9%	4.1%	38	-22	11.9%	6.1%
Milwaukee-Waukesha-West Allis, Wis.	$372,000	24.2%	12.9%	-4.1%	-18.7%	29	0	10.4%	2.2%
Minneapolis-St. Paul-Bloomington, Minn.-Wis.	$420,000	15.1%	8.8%	-0.5%	-10.1%	30	-1	11.3%	5.2%
Nashville-Davidson–Murfreesboro–Franklin, Tenn.	$561,000	30.6%	18.0%	85.6%	37.2%	15	1	17.7%	10.4%
New Orleans-Metairie, La.	$350,000	1.5%	2.9%	15.5%	2.0%	40	-6	18.1%	7.8%
New York-Newark-Jersey City, N.Y.-N.J.-Pa.	$700,000	9.4%	19.2%	0.3%	-2.2%	45	0	11.3%	2.6%
Oklahoma City, Okla.	$321,000	11.8%	19.1%	37.2%	26.8%	32	-5	10.8%	2.7%
Orlando-Kissimmee-Sanford, Fla.	$464,000	30.6%	24.9%	30.8%	17.9%	30	-7	14.7%	7.6%
Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.	$349,000	4.2%	7.2%	-2.3%	-8.7%	37	0	13.3%	4.4%
Phoenix-Mesa-Scottsdale, Ariz.	$549,000	18.0%	18.8%	113.2%	19.5%	25	-4	29.5%	22.2%
Pittsburgh, Pa.	$240,000	-8.6%	-0.7%	4.2%	-6.9%	37	-4	14.6%	4.8%
Portland-Vancouver-Hillsboro, Ore.-Wash.	$600,000	8.1%	9.1%	30.7%	-1.6%	28	-2	21.4%	11.6%
Providence-Warwick, R.I.-Mass.	$477,000	12.4%	10.1%	6.3%	-1.9%	23	-2	9.2%	4.6%
Raleigh, N.C.	$500,000	21.9%	17.4%	111.7%	37.6%	15	-1	14.3%	10.9%
Richmond, Va.	$397,000	13.4%	10.2%	-6.3%	-9.0%	34	-3	7.9%	3.3%
Riverside-San Bernardino-Ontario, Calif.	$599,000	13.1%	15.1%	71.7%	7.9%	30	0	19.8%	14.8%
Rochester, N.Y.	$230,000	-5.9%	3.3%	-3.7%	-3.3%	12	1	9.6%	0.8%
Sacramento–Roseville–Arden-Arcade, Calif.	$643,000	8.3%	9.0%	65.0%	-5.6%	27	2	25.2%	17.5%
San Antonio-New Braunfels, Texas	$399,000	23.2%	20.3%	53.7%	11.5%	33	-2	15.0%	8.7%
San Diego-Carlsbad, Calif.	$949,000	16.8%	13.9%	25.5%	-5.2%	22	-4	17.6%	11.5%
San Francisco-Oakland-Hayward, Calif.	$1,150,000	6.5%	7.3%	46.3%	-4.2%	25	-4	15.0%	10.3%
San Jose-Sunnyvale-Santa Clara, Calif.	$1,489,000	14.7%	10.1%	33.5%	-19.5%	23	-1	17.3%	11.9%
Seattle-Tacoma-Bellevue, Wash.	$822,000	19.6%	10.7%	65.6%	4.8%	22	-4	18.1%	13.5%
St. Louis, Mo.-Ill.	$282,000	8.7%	8.2%	5.2%	-9.8%	37	-5	10.4%	2.6%
Tampa-St. Petersburg-Clearwater, Fla.	$447,000	27.9%	24.3%	55.9%	12.4%	29	-4	18.7%	11.6%
Virginia Beach-Norfolk-Newport News, Va.-N.C.	$359,000	14.0%	12.2%	-14.4%	-7.1%	22	-1	14.4%	4.3%
Washington-Arlington-Alexandria, DC-Va.-Md.-W. Va.	$593,000	13.0%	3.1%	2.5%	-15.8%	28	-1	14.6%	6.4%

Note: Hartford active listing count growth is not available due to data inconsistencies.

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June 2022 Monthly Housing Market Trends Report

Highlights

• Manchester, NH remains in the top spot on the hottest housing markets list in April, holding the top spot for the 10th time in the last year.
• The top 20 hottest markets are spread out across 13 states, with multiple metros in North Carolina, Indiana, Massachusetts, New Hampshire and Tennessee.
• As prices soar to new heights nationwide, affordability remains a key feature of April’s hottest markets with 12 markets below the national median listing price.
• There are no California markets on this month’s list for the first time in the data’s history.
• The Orlando-Kissimmee-Sanford, FL metro area again saw the largest increase in its Hotness ranking among larger metros compared to last year, securing its highest hotness ranking (104th) for any April on record (available data going back to 2016).

Manchester, NH remained in the top spot on the hottest housing markets list in April. This area originally topped the list back in August 2020, and has held the number one spot a total of 14 times. Manchester first cracked into the top 20 in May 2018, and has remained in the top 2 for the last year.

Realtor.com’s Market Hotness rankings take into account two aspects of the housing market: 1) market demand, as measured by unique viewers per property on Realtor.com, and 2) the pace of the market as measured by the number of days a listing remains active on Realtor.com.

Focus on Affordability Remains

After holding 5 spots on the hottest markets list in January, California metros are on the decline once again with no metros on the list in April. This is the first month in the data’s history (going back to 2016) in which no California markets are in the top 20 hottest markets. These pricey California markets have been replaced with more affordable markets in the South, Northeast and Midwest. Overall, 12 of April’s hottest markets had median listing prices below the national median. The average listing price for the 20 hottest markets was $376,000 in April 2022, 11.5% lower than the national median, and 23.6% lower than March’s average. Overall, 13 states were represented on our list of top 20 hottest housing markets in April, indicating diversified demand as affordability becomes harder to come by. 

North Carolina boasted 4 markets on the list in April (Burlington, Raleigh, Greenville and Durham-Chapel Hill), the most of any state. Rounding out the southern region with these North Carolina locales was Johnson City, TN and Kingsport-Bristol, TN. Northeastern markets have returned to the list with gusto as spring arrives, holding 8 spots, the most of any April on record. The Midwest held 5 markets on the list, and the West had just 1 (Billings, MT).

The states featured in our top 20 list this month are: Connecticut, Indiana, Massachusetts, Maine, Missouri, Montana, North Carolina, New York, New Hampshire, Ohio, Tennessee, Vermont and Wisconsin.

Our Hottest Housing Markets, by design, are the areas where homes sell fastest and have lots of potential buyers checking out each listing. As a group, Realtor.com’s 20 Hottest Housing Markets received 1.3 to 3.5 times the number of viewers per home for sale compared to the national rate. These markets are seeing homes-for-sale move up to 26 days more quickly than the typical property in the United States. 

The median national home price for active listings reached a new high of $425,000 in April, up 14.2% year-on-year. Most of April’s hottest markets are relatively affordable Midwest, Southern, and Northeast markets. The hottest markets saw median listing prices reach $376,000 in April—11.5% lower, on average, than the national median of $425,000. Notably, the most expensive markets on the list were the Portland-South Portland, ME and Billings, MT markets, where median listing prices were $525,000 and $523,000, respectively. These markets were just over a third the price of March’s most expensive market, representing a big shift away from expensive California markets.

April 2022 – Top 20 Hottest Housing Markets

Hottest Metros	Hotness Rank	Hotness Rank YoY	Viewers per Property vs US	Median Days On Market	Days on Market YoY	Median Listing Price If Active Within Period
Manchester-Nashua, N.H.	1	0	2.9	8	-1	$449,900
Concord, N.H.	2	0	3.5	14	-2	$439,000
Burlington, N.C.	3	15	2.2	13	-16	$360,000
Portland-South Portland, Maine	4	-1	2.2	15	-3	$525,000
Elkhart-Goshen, Ind.	5	1	1.9	11	-5	$249,900
La Crosse-Onalaska, Wis.-Minn.	6	8	2.3	16	-8	$340,000
Burlington-South Burlington, Vt.	7	24	2.1	17	-6	$433,000
Worcester, Mass.-Conn.	8	3	1.7	14	-8	$449,000
Rochester, N.Y.	9	0	1.5	10	-5	$199,999
Springfield, Mass.	10	7	1.7	17	-6	$355,000
Columbus, Ohio	11	-3	1.5	13	-3	$325,000
Kingsport-Bristol-Bristol, Tenn.-Va.	12	56	2.7	24	-17	$289,000
Billings, Mont.	13	21	1.7	22	-11	$523,000
Raleigh, N.C.	14	19	1.3	9	-14	$475,000
Hartford-West Hartford-East Hartford, Conn.	15	132	1.5	20	-12	$349,999
Johnson City, Tenn.	16	0	3.1	25	-4	$364,900
Greenville, N.C.	17	109	2	24	-20	$278,000
Columbia, Mo.	18	6	1.3	15	-8	$349,000
Fort Wayne, Ind.	19	28	1.7	24	-13	$270,000
Durham-Chapel Hill, N.C.	20	33	1.3	16	-16	$495,000

Affordability Rules in the Top Hottest Markets

For the first time since November 2021, the average median listing price of the hottest markets is lower than the national median as more than half of the 20 hottest markets fall below this threshold. The Manchester-Nashua, NH metro area has been a mainstay in the top 20 hottest markets since early 2019. Manchester-Nashua, along with the number 2 market, neighboring Concord, NH, offer short commutes and relative affordability compared to nearby Boston. The Boston metro area saw median home prices reach $759,000 in April 2022, 68.7% and 72.9% higher than the neighboring Manchester-Nashua and Concord, NH metros where prices reached $449,900 and $439,000, respectively. Homes in red-hot Manchester-Nashua spent just 8 days on the market in April, nearly a month less than the national average. Homes in Concord typically spent 14 days on the market, just shy of three weeks less than the typical US home.

For the first time in the data history, no California metros are on the hottest markets list. There was just one Western market on the list at all, tying August 2021 for the lowest Western market representation in the data’s history. Last month (March), the most expensive market on the list was Santa Maria-Santa Barbara, CA where the median listing price was $1,498,000, 170% more expensive than March’s national median. In April, however, the most expensive metro on the list was Portland, ME where prices reached $525,000 in April, just 23.5% higher than the national median. By comparison, the most expensive hot market in April 2021 (one year earlier) was priced 43.5% higher than the national median. Buyers are looking for buying opportunities in less pricey markets as still-climbing prices coupled with rising interest rates have taken a toll on their confidence and their budget. On average, April’s hottest markets saw prices grow 15.0% year-over-year, lagging national price growth by 2.2 percentage points.

The most affordable market on April’s list was Rochester, NY, where the median home price was $200,000, less than half of the national median. The midwestern locales of Elkhart-Goshen, IN and Fort Wayne, IN, which held the 5th and 19th spots on the list, were also among the most affordable hot markets. These metros boasted median listing prices of $249,900 in Elkhart-Goshen and $270,000 in Fort Wayne, both significantly less expensive than the national median, despite price growth in the last year. 

Most Improved Large Markets

Larger urban markets continue to cool down in the rankings, with the largest 40 markets across the country dropping by 9 spots, on average, since April 2021. 

Of the largest 40 metros, the most-improved housing markets were all in the South: Orlando-Kissimmee-Sanford, FL (+97 spots); Virginia Beach, VA (+35 spots); Charlotte-Concord, SC (+28 spots); Tampa-St. Petersburg, FL (+27 spots) and Nashville-Davidson, TN (+26 spots).

After struggling early in the days of the pandemic, the Orlando, FL housing market is now seeing real estate sell faster and garner more interest, earning it the position of fastest-rising large market on our list for the ninth month in a row. In the first quarter of 2022, this metro received the most attention from viewers in the Miami, FL, New York, NY and Washington D.C. metro areas. In April, the Orlando area rose 97 spots in hotness rank compared to last year. The metro area clocked in as the 104th hottest metro in the US, the highest ranking Orlando has seen in April in the available data (going back to 2016). The typical Orlando home spent 32 days on market, tied with March 2022 for the shortest time on record for the metro. The number of viewers per property in Orlando dropped 2.3% year-over-year in April, but the metro still saw 1.2 times the numbers of viewers as was typical for a US property.

On the supply side, the five most-improved large markets saw inventory move an average 9 days more quickly than last year. In comparison, the largest 40 markets overall saw properties spend 6 days fewer on the market than last year, on average. The typical property spent 22 days on the market in the most-improved metros, 12 days less than the national norm.

Markets Seeing the Largest Jump in Rankings (April 2022)

Metro	Hotness Rank	Hotness Rank YoY	Viewers per Property vs US	Median Days On Market	Days on Market YoY	Median Days On Market Vs US
Orlando-Kissimmee-Sanford, Fla.	104	97	1.2	32	-13	-2
Nashville-Davidson–Murfreesboro–Franklin, Tenn.	140	35	0.5	18	-7	-16
Dallas-Fort Worth-Arlington, Texas	34	28	1.1	20	-12	-14
Charlotte-Concord-Gastonia, N.C.-S.C.	57	27	1.3	28	-9	-6
Tampa-St. Petersburg-Clearwater, Fla.	54	26	1.0	11	-8	-23

April 2022 Hottest Housing Markets: California Cools Off as Affordability Reigns

Our research team releases regular monthly housing trends reports. These reports break down inventory metrics like the number of active listings and the pace of the market. In addition, we continue to give readers more timely weekly updates, an effort that began in response to the rapid changes in the economy and housing as a result of the COVID-19 pandemic. Generally, you can look forward to a Weekly Housing Trends View and the latest weekly housing data on Thursdays with a weekly video update from our economists on Fridays. Here’s what the housing market looked like over the last week.

What this Week’s Data Means:

The real estate refresh has arrived, as active listings posted sizeable gains for the first time in three years. And the year-over-year gap closed rapidly, going from flat to convincingly positive territory in the span of a week. As anticipated in our April Housing Trends report, we saw the number of homes actively for sale on Realtor.com even out two weeks ago for the first time since June 2019, and last week inventory grew convincingly year over year for the first time since March 2019.

Buyers continue to face a challenging market, with for-sale homes lagging behind historical levels and asking prices still rising double-digits year-over-year, after hitting yet another record-high in April. Even so, the accelerated change in inventory trends is a welcome one, driven by the combination of more sellers and fewer buyers able to contend with rising housing costs. For those persisting in their search for relatively affordable homes, recent trends indicate that creative approaches like larger down payments or selective relocation could pay off.

Key Findings:

• The median listing price grew by 15.9 percent over last year. The typical asking price of for-sale homes was higher than one year ago by double-digits for a 21st week.  As the Fed moves to rapidly normalize monetary policy following its early May hike with plenty of guidance to prepare markets for what’s ahead, mortgage rates continue to climb. While climbing rates that cut into buyer ability to afford monthly payments are expected to ultimately dampen home price growth, we have not seen that yet, perhaps because despite slipping confidence, consumers widely believe that mortgage rate increases will continue, giving a strong reason to make a purchase sooner rather than later for those who want to buy within a relatively soon time frame.
• New listings–a measure of sellers putting homes up for sale–were up 6% above one year ago.  Now that we’re in May, we’re in the heart of home selling season. Over the last few years, we have tended to see the number of new listings peak on an absolute basis this month while active inventory (newly listed homes plus those that have been on the market for a while) tends to peak in the fall.  Seller confidenceamid record high asking prices is driving the growth in the number of sellers this year over last which we’ve seen in 6 of the last 7 weeks.
• Active inventory moved convincingly into positive territory for the first time since 2019. While last week’s positive inventory improvement rounded to 0%, this week’s data built on that trend in a notable way, leading to the biggest year over year gain since March 2019.  Our April Housing Trends Reportshowed that the active listings count remained 60 percent below its level right at the onset of the pandemic. This means that today’s buyers have just 2 homes to consider for every 5 homes that were available for sale just before the pandemic. In other words, homes for sale are still limited. However, more sellers combined with a slowing level of sales activity is causing a relatively rapid transition in conditions.
• Homes spent 6 days less on the market than this time last year. Homebuyers who can act quickly have an edge in a still-competitive market, and this is especially true for those who may be hoping to stand out by offering something other than a larger down payment. Our April Housing Trends Report showed that homes sat on the market for less time than ever before–a feat normally not achieved until summer.  Existing homeowners, who have seen their equity grow as home prices have soared, may have more options. But first-time homebuyers, many of whom are also contending with rents continuing to grow 4-5x faster than pre-pandemic, are feeling particularly pressured in this housing market. Some shoppers are relocating to find affordability, with metro areas in the Sunbelt, particularly Texas, seeing the biggest net improvement in traffic as locals stay and outsiders aim to move in for the affordability.  First-time homebuyers can check out our first-time home buyer guide to prepare for the process and navigate the market more confidently. For repeat buyers contemplating how to buy and sell at the same time, our seller’s market place and information can give you options you may not have realized you had.

Data Summary:

All Changes year-over-year	Year-to-Date 2022	Week ending April 30, 2022	Week ending May 7, 2022	Week ending May 14, 2022
Median Listing Prices	+13.5%	+14.7%	+15.8%	+15.9%
New Listings	-1%	+3%	+4%	+6%
Active Listings	-17%	-3%	+0%	+5%
Time on Market	10 days faster	7 days faster	6 days faster	6 days faster

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Weekly Housing Trends View — Data Week Ending May 14, 2022

April Rental Report: Sun Belt Metros Drive Sustained Growth in Nationwide Rents

MAY 19, 2022

April Highlights

• Rent has reached yet another high ($1,827) in Realtor.com data history, as growth continues nationwide at a pace in line with the last four months (+16.7%).
• Studio units continue to see rents increase at a faster rate than larger units, reversing the pattern from last year, particularly in the largest metros like New York City (29.1%), Los Angeles (23.2%), and Chicago (21.5%).
• Rent increases are most pronounced in Sun Belt metros, especially ones where housing demand from outsiders is growing faster than the supply of rental units built in recent years.

Nationwide Rents Continue Rapid Growth, but Pace Has Leveled Off 

The median rent in the 50 largest US metropolitan areas reached a new record high in April: $1,827. Rent has been steadily increasing since January 2021, following the general trend in housing prices and rebounding from a dip in the first year of the pandemic. The rental supply has been strained in recent months, as evidenced by the national rental vacancy rate holding below 6% in each of the last three quarters. Landlords with fewer available units are able to charge higher rents, and at the same time, for-sale home prices continue to climb. Today’s renters are left with few options but to pay these rising rents. 

Figure 1: Year-over-Year Rent Trend

One possible signal of relief from this surge can be found by tracking year-over-year rent growth. April’s rents were up 16.7% from April 2021. This marks the third consecutive month in which year-over-year rent growth has slowed, albeit modestly, from the 17.1% peak this January. Still, this level of rent increase is severe. If annual rent growth were to remain around 17% through the summer, the national median rent would eclipse $2,000 this August.

Studio Rents are Growing the Fastest

Studio unit rents increased at the fastest pace again this month, growing 17.2% from April 2021 compared to 15.9% for 2-bedroom units and 15.6% for 1-bedroom units. Studios have seen the most year-over-year rent growth every month so far this year, rebounding later than larger rentals from the price decreases in late 2021 and early 2021. 1- and 2-bedroom rents both decreased in year-over-year growth from March into April, driving the general slowdown. Studio apartments are less costly and generally attract renters with more flexible living arrangements, so they were more easily vacated early in the pandemic and are now in higher demand for those looking to move into their own place or to return to major city centers. Studio rents in New York City (29.1%), Los Angeles (23.2%), and Chicago (21.5%) all grew at a faster year-over-year rate than the national average.

Table 1: National Rents by Unit Size

Unit Size	Median Rent	Rent YoY	Rent Change – 2 years
Overall	$1,827	16.7%	21.0%
Studio	$1,499	17.2%	15.3%
1-bed	$1,675	15.6%	19.7%
2-bed	$2,552	15.9%	23.7%

Figure 2: National Rent by Unit Size Trend

Rent Growth Concentrated in Sun Belt

Leading the charge in nationwide rents are three Florida metros. Rent in Miami was up 51.6% from April of last year. Orlando (32.9%) and Tampa (27.8%) followed close behind. Recent analysis of cross-market search demand has shown that homebuyers are increasingly interested in relocating to the Sun Belt, and this migration trend has made its way into the rental market as well. 

Along with the top three rent growth metros in Florida, southern and southwestern cities like San Diego (25.6%), Las Vegas (24.8%), Austin (24.7%), Nashville (24.1%), Raleigh (23.9%) and Jacksonville (23.3%) are among the top ten markets where rent has grown the fastest year-over-year. Conversely, the chillier climates of Pittsburgh (4.2%), Detroit (4.5%), and Minneapolis (5.5%) have contributed to these metro areas landing in the bottom three for rent growth. In the case of Minneapolis, a supply-side factor is also in play, as the growth in the number of units permitted for construction in building projects of five units or more has far outpaced the national average over the past four years. Meanwhile, Miami has trailed the national growth in new multifamily construction, and the lack of housing options for new arrivals to the area has added fuel to the rent growth fire.

___________________________________________________________________________

Rental Data – 50 Largest Metropolitan Areas – April 2022

Metro	Overall Median Rent	Overall Rent YY	Studio Median Rent	Studio Rent YY	1-br Median Rent	1-br Rent YY	2-br Median Rent	2-br Rent YY
Atlanta-Sandy Springs-Roswell, GA	$1,829	16.7%	$1,665	17.9%	$1,700	17.4%	$2,035	17.7%
Austin-Round Rock, TX	$1,800	24.7%	$1,450	25.0%	$1,652	26.7%	$1,951	18.5%
Baltimore-Columbia-Towson, MD	$1,800	12.5%	$1,485	12.5%	$1,701	12.1%	$1,900	11.0%
Birmingham-Hoover, AL	$1,189	7.8%	$1,073	11.7%	$1,120	7.2%	$1,283	8.3%
Boston-Cambridge-Newton, MA-NH	$2,825	22.7%	$2,400	27.4%	$2,600	18.3%	$3,190	23.9%
Buffalo-Cheektowaga-Niagara Falls, NY	$1,290	7.5%	$1,125	2.7%	$1,125	3.0%	$1,445	7.8%
Charlotte-Concord-Gastonia, NC-SC	$1,675	19.5%	$1,563	21.8%	$1,588	21.3%	$1,840	17.3%
Chicago-Naperville-Elgin, IL-IN-WI	$1,923	13.5%	$1,580	21.5%	$1,880	13.9%	$2,160	9.6%
Cincinnati, OH-KY-IN	$1,416	8.9%	$1,200	13.2%	$1,360	8.8%	$1,576	8.4%
Cleveland-Elyria, OH	$1,409	10.7%	$950	4.4%	$1,319	6.2%	$1,540	14.1%
Columbus, OH	$1,275	11.1%	$1,095	10.1%	$1,200	11.9%	$1,390	9.4%
Dallas-Fort Worth-Arlington, TX	$1,655	21.3%	$1,375	18.5%	$1,508	22.4%	$1,918	20.3%
Denver-Aurora-Lakewood, CO	$1,970	15.3%	$1,600	14.7%	$1,848	16.0%	$2,331	16.3%
Detroit-Warren-Dearborn, MI	$1,385	4.5%	$1,074	7.9%	$1,165	6.4%	$1,545	4.6%
Hartford-West Hartford-East Hartford, CT	$1,626	7.5%	$1,497	32.5%	$1,440	2.9%	$1,955	11.7%
Houston-The Woodlands-Sugar Land, TX	$1,435	13.1%	$1,344	11.6%	$1,310	13.4%	$1,609	12.7%
Indianapolis-Carmel-Anderson, IN	$1,237	8.9%	$1,050	8.4%	$1,130	8.2%	$1,374	10.9%
Jacksonville, FL	$1,600	23.3%	$1,430	42.3%	$1,484	20.8%	$1,757	24.4%
Kansas City, MO-KS	$1,233	10.6%	$1,014	9.1%	$1,115	13.0%	$1,465	11.3%
Las Vegas-Henderson-Paradise, NV	$1,649	24.8%	$1,315	13.4%	$1,519	25.5%	$1,750	22.3%
Los Angeles-Long Beach-Anaheim, CA	$3,016	20.9%	$2,279	23.2%	$2,767	23.9%	$3,445	18.2%
Louisville/Jefferson County, KY-IN	$1,204	13.6%	$1,005	12.0%	$1,135	12.9%	$1,359	8.6%
Memphis, TN-MS-AR	$1,409	22.0%	$1,139	10.6%	$1,362	21.2%	$1,561	22.6%
Miami-Fort Lauderdale-West Palm Beach, FL	$2,800	51.6%	$2,450	45.9%	$2,462	45.7%	$3,150	54.8%
Milwaukee-Waukesha-West Allis, WI	$1,525	9.3%	$1,200	6.2%	$1,428	9.8%	$1,750	10.7%
Minneapolis-St. Paul-Bloomington, MN-WI	$1,580	5.5%	$1,245	4.2%	$1,495	5.5%	$1,925	4.4%
Nashville-Davidson–Murfreesboro–Franklin, TN	$1,760	24.2%	$1,749	22.7%	$1,618	20.3%	$1,914	26.9%
New Orleans-Metairie, LA	$1,798	12.4%	$1,300	28.4%	$1,590	6.3%	$2,020	7.8%
New York-Newark-Jersey City, NY-NJ-PA	$2,845	18.0%	$2,581	29.1%	$2,573	12.2%	$3,166	13.1%
Oklahoma City, OK	$985	13.0%	$913	30.6%	$916	14.6%	$1,050	11.2%
Orlando-Kissimmee-Sanford, FL	$1,927	32.9%	$1,630	23.7%	$1,772	30.9%	$2,190	36.9%
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD	$1,775	7.6%	$1,413	2.0%	$1,679	4.1%	$1,975	6.1%
Phoenix-Mesa-Scottsdale, AZ	$1,915	20.1%	$1,429	20.4%	$1,650	20.7%	$2,225	14.7%
Pittsburgh, PA	$1,475	4.2%	$1,261	12.4%	$1,450	5.7%	$1,592	-2.0%
Portland-Vancouver-Hillsboro, OR-WA	$1,764	12.1%	$1,400	9.8%	$1,710	11.2%	$2,049	11.8%
Providence-Warwick, RI-MA	$2,200	25.4%	$1,468	4.9%	$1,765	13.5%	$2,575	29.9%
Raleigh, NC	$1,615	23.9%	$1,458	22.1%	$1,485	24.5%	$1,791	21.3%
Richmond, VA	$1,435	17.0%	$1,147	15.0%	$1,305	18.1%	$1,559	16.4%
Riverside-San Bernardino-Ontario, CA	$2,729	12.3%	$1,400	-6.7%	$2,184	14.5%	$3,000	13.3%
Rochester, NY	$1,320	9.5%	$980	8.6%	$1,265	13.6%	$1,405	7.7%
Sacramento–Roseville–Arden-Arcade, CA	$2,045	10.1%	$1,845	11.5%	$1,901	7.6%	$2,230	10.9%
San Antonio-New Braunfels, TX	$1,385	19.4%	$1,242	16.4%	$1,264	20.1%	$1,599	21.0%
San Diego-Carlsbad, CA	$3,125	25.6%	$2,447	23.1%	$2,769	22.5%	$3,500	23.5%
San Francisco-Oakland-Hayward, CA	$3,000	11.1%	$2,350	15.6%	$2,750	11.4%	$3,500	9.5%
San Jose-Sunnyvale-Santa Clara, CA	$3,165	19.9%	$2,490	23.9%	$2,920	18.8%	$3,545	18.2%
Seattle-Tacoma-Bellevue, WA	$2,165	17.2%	$1,799	23.4%	$2,145	16.2%	$2,633	18.4%
St. Louis, MO-IL	$1,331	8.7%	$1,000	6.1%	$1,272	10.8%	$1,462	6.1%
Tampa-St. Petersburg-Clearwater, FL	$2,163	27.8%	$1,989	28.0%	$1,896	28.0%	$2,390	26.6%
Virginia Beach-Norfolk-Newport News, VA-NC	$1,531	13.4%	$1,343	10.6%	$1,436	10.6%	$1,669	12.8%
Washington-Arlington-Alexandria,DC-VA-MD-WV	$2,115	12.4%	$1,722	14.1%	$2,017	12.2%	$2,499	10.6%

Methodology

Rental data as of April for units advertised as for-rent on Realtor.com®. Rental units include apartment communities as well as private rentals (condos, townhomes, single-family homes). All units were studio, 1-bedroom, or 2-bedroom units. We use communities that reliably report data each month within the top 50 largest metropolitan areas. National rents were calculated by averaging the medians of the 50 largest metropolitan areas.Realtor.com® began publishing regular monthly rental trends reports in October 2020 with data history stretching back to March 2019.

Note: With the release of its February 2022 rent report, Realtor.com® incorporated a new and improved methodology for capturing and reporting rental listing trends and metrics. The new methodology is expected to yield a cleaner and more consistent measurement of rental listings and trends at both the national and local level. The methodology has been adjusted to better account for cases where new or missing data may not be completely at random. Most areas across the country will see minor changes with a smaller handful of areas seeing larger updates. As a result of these changes, the rental data released since March 2022 will not be directly comparable with previous releases (files downloaded before March 2022) and Realtor.com® economics blog posts. However, future data releases, including historical data, will consistently apply the new methodology.

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