With
U.S.
inflation
climbing
to
2.6%
in
October—fueled
by
rising
housing
and
insurance
costs—and
mortgage

rates
having
edged
back
above
7%,

homeownership
remains
a
distant
goal
for
many
living
in
the
U.S.
For
real
estate
agents,
this
economic
reality
can
present
both
challenges
and
opportunities,
and
determine
strategies
in
markets
across
the
country.

Data
from
RentSpree
and
the
U.S.
Census
reveal
that
Florida,
with
around
251,000
real
estate

agents,
California
with
approximately
277,000,
Texas
with
about
171,000,
and
Georgia
with
over
122,000,
lead
the
nation
in
agent
numbers.
New
York
and
Arizona
follow
closely
with
about
69,000
and
56,000
agents,
respectively.
Yet
each
of
these
states
faces
unique

real
estate
hurdles
that
shape
the
prospects
for
both
home
sales
and
rentals. 

In
Florida,
high
insurance
costs,
exacerbated
by
frequent
natural
disasters,
have
turned
into
a
significant
barrier
to
homeownership.
Home
insurance
premiums
have
climbed
45%
from
2017
to
2022,
contributing
to
a
slowing
sales
market.
In
California,
where
housing
affordability
is
a
longstanding
issue,
low
inventory
and
intense
competition
have
driven
the
average
home
value
to
$771,057,
with
Los
Angeles
nearing
$947,245,
according
to
Zillow
data.
Texas,
while
more
affordable
with
an
average
home
price
around
$300,267,
is
also
impacted
by
rising
interest
rates;
only
38
percent
of
Houston-area
households
could
afford
a
median-priced
home
in
the
third
quarter,
according
to
the
Houston
Association
of
REALTORS.
In
Georgia,
Atlanta’s
housing
prices
are
up
3.67%
year-over-year,
putting
additional
strain
on
buyers.

These
for-sale
market
challenges
make
the
rental
sector
a
critical
avenue
for
agents,
especially
in
states
with
intense
competition
among
high
numbers
of
agents.
Luckily,
many
of
these
markets
are
showing
significant
demand
for
rentals,
making
them
lucrative
spaces
for
real
estate
professionals.
California’s
rental
market
is
highly
competitive
due
to
its
urban
density,
and
Florida
sees
high
in-migration
from
out-of-state
residents
who
need
housing
quickly.
Texas
continues
to
grow,
with
nearly
half
of
its
population
increase
attributed
to
new
residents
in
2022.
Atlanta
also
benefits
from
robust
job
growth,
especially
in
professional
and
business
services,
supporting
a
strong
rental
market.

Last
year,
44.5
million
households
in
the
U.S.
rented.
Agents
who
pivot
toward
rentals
can
tap
into
a
steady
revenue
stream.
In
California,
the
median
rent
across
property
types
was
$2,800
in
November;
in
Florida,
it
was
$2,455,
according
to
Zillow.
Rentals
aren’t
merely
a
fallback
in
these
high-cost
housing
markets—they
should
be
part
of
a
well-rounded
strategy,
offering
real
estate
agents
a
way
to
diversify
and
succeed
in
today’s
economy.

In
a
shifting
landscape
where
traditional
paths
to

homeownership
are
less
accessible,
agents
who
embrace
the
rental
market
can
not
only
sustain
their
businesses
but
also
help
meet
the
critical
housing
needs
of
an
increasingly
rent-reliant
population.

Michael
Lucarelli
is
the
CEO
of
RentSpree.

This
column
does
not
necessarily
reflect
the
opinion
of
HousingWire’s
editorial
department
and
its
owners.

To
contact
the
editor
responsible
for
this
piece:



[email protected].

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