See how rents have changed in the Southampton area

SOUTHAMPTON, N.Y. — Home prices in the United States have risen dramatically in large parts of the country, but the same cannot be said for all rents.

While rents for single-family homes have seen large increases as renters and buyers compete for the same limited amount of housing on the market, apartment rents have not increased as quickly.

In Southampton, the fair market rent assessment for a one-bedroom rental property in the 11968 zip code increased from $1,860 in fiscal year 2020 to $1,870 in fiscal year 2021, while a four-bedroom rental decreased from $3,270 to $3,260. The 2021 financial year runs from October 2020 to the end of September 2021.

The U.S. Department of Housing and Urban Development provides data for all U.S. communities on fair market rents, which are estimates of the rent paid for a modest home by someone who recently moved into the market, including items such as basic utilities . The numbers given are for the 40th percentile, meaning 40 percent of renters would pay less than that rate.

Here are fair market rent estimates from the US Department of Housing and Urban Development for zip codes in the Southampton area. Search by city or zip code here too.

Postal code: 11968

Financial year 2021

• One bedroom: $1,870
• Two bedrooms: $2,290
• Three-bedroom: $2,930
• Four bedrooms: $3,260

Financial year 2020

• One bedroom: $1,860
• Two bedrooms: $2,280
• Three-bedroom: $2,930
• Four bedrooms: $3,270

Postal code: 11969

Financial year 2021

• One bedroom: $1,640
• Two bedrooms: $2,010
• Three-bedroom: $2,570
• Four bedrooms: $2,860

Financial year 2020

• One bedroom: $1,610
• Two bedrooms: $1,970
• Three-bedroom: $2,530
• Four bedrooms: $2,830

Fair market values ​​do not include luxury and non-marketable rentals in the area, along with rentals built within the last two years. The rates are used to determine amounts for government assistance programs, including rental vouchers.

Fair market rent is used as an estimate. National trend data is used when area trends are not available, according to HUD.

In New York, an estimated 7 percent of rental properties were vacant in the first quarter of 2021, according to the U.S. Census Bureau. The national average rental vacancy rate was 6.8 percent, which was about the same as the first quarter of 2020 and 0.3 percentage points higher than the fourth quarter of 2020.

Competition between tenants and buyers

Single-family rent prices rose 3.9% nationwide in February 2021 compared to February 2020, according to the CoreLogic Single-Family Rent Index. Over the past year, these rents have increased by 3%.

Prices rose 7.1 percent year-over-year for single-family homes, compared with 1.5 percent for attached homes, such as condominiums.

“What this suggests is that the same people looking for those rentals are competing with people looking to buy single-family homes,” said Selma Hepp, deputy chief economist at CoreLogic.

A number of factors that boosted home prices also boosted rents for single-family homes. There is a historic supply and demand imbalance in the housing market that is only partially related to the pandemic.

Eventually, housing supply and demand will converge when more homes are built, Hepp said, noting that housing construction has lagged behind demand over the past decade.

“While we hope that more people will start to move as more people get vaccinated, there is still a huge demand to build more houses,” he said.

The lowest priced single-family rentals (75 percent or less of the area average) rose 2.9 percent year-over-year.

The change in rents paralleled other economic trends caused by the pandemic, Hepp said. Renters in the lower price bracket have not fared as well with job availability and earnings as middle- and high-income earners, which has dampened demand at the lower end of the market.

There are also large price variations in different metropolitan areas. The Tucson, Arizona, metro area saw the largest annual increase of 11.2 percent for single-family homes, according to CoreLogic. Boston saw prices decline 8.9 percent, in part due to lower demand from college renters, Hepp said.

The single-family rental offer can be reduced by mom-and-pop owners who may want to sell because of the current high home value.

Apartment rentals are not growing as much as single-family homes. Many metropolitan areas have seen only modest rent increases. Rents for luxury apartments in the central city have generally declined.

The expectation is that rents for luxury apartments in the central city will rebound as workers return to the office, Hepp said. However, the long-term impact of most office workers working from home remains to be seen. It will depend on whether employers become more flexible with remote work policies or return to pre-pandemic ways.

“We really don't know how this is going to play out,” he said.

Even a modest increase in telecommuting could increase demand for homes in suburban areas, he said.

Editor's Note: This post was automatically generated using fair market rent data from the US Department of Housing and Urban Development. Please report any bugs or other feedback to content@patch.com.