Truth be told, we're a little surprised.
As you know, we've written a rental market update for many years now. In most cases, when we compile the quarterly numbers, there's nothing surprising with the numbers.
The numbers we compile are, in fact, almost always what we expect and, to a more specific extent, what we "felt" as a company.
Meaning, the overall market for a given quarter is a direct reflection of our leasing operations. If the market is hot, our leasing is hot. If the market cooled, our leasing typically cooled, too.
But, this quarter was definitely different.
Quick Central Indiana Rental Market Overview
The first quarter of 2021, from an overall perspective was, well... "meh."
For example, in Indianapolis, a total of 530 homes rented through the local MLS system. That's slightly ahead of Q4 in 2020 (526) but SIGNIFICANTLY lower than the same quarter of 2020, where 715 homes rented.
Average rents in Indianapolis came in at $1,218, which is right in line with previous quarters. The one big statistic this quarter was days on market (DOM). Homes rented in just 36 days during this past quarter, compared to 52 days in Q1 of 2020, but a little more than Q4 of 2020, which came in at 33.
So, overall, nothing remarkable, until you look at our activity...
T&H Realty Services' Perspective
Plainly put, the first quarter of 2021 was incredibly busy for us.
In addition to processing a record number of applications, we signed a near-record number of leases and processed a near-record number of move-ins.
Nothing "meh" at all about it.
To accommodate our growth, we've added three new staff members and are actively seeking to hire a fourth. You can read all about our staff here.
why the big difference?
So, why were we (and continue to be) so busy for the first quarter while the overall market seemed to slow?
Perhaps the main driver is that, while our company continues to grow, the overall supply of rental homes continues to dwindle.
Many of our Clients, and other investors throughout Central Indiana, are selling homes to owner-occupants and, thus, reducing the rental supply.
We don't anticipate that changing anytime soon.
That's good news for those of you who own rental property, but not the greatest of news for those of you looking to add to your rental inventory.