Story by Brent Nyitray, CFA
As a general rule, rents tend to follow home prices, and in many of American Homes 4 Rent’s markets, we are seeing rapid home price appreciation. The company’s biggest markets include Atlanta, Dallas-Fort Worth, Charlotte, and Phoenix. According to the Clear Capital Home Data Index, these metropolitan statistical areas (MSAs) were all in the top 15 in terms of home price appreciation last month, and each of these areas saw at least 28% annual home price appreciation. Given the rapid home price appreciation since the beginning of the year, American Homes 4 Rent should see accelerating rental inflation as the leases reset to market rates.