Recent national housing data shows that multifamily rentals have now overtaken single-family homes as the largest share of U.S. rental housing. Large apartment buildings account for a growing percentage of the country’s rental stock, while the share of single-family homes being used as rentals has declined. In many metropolitan areas, a surge of new apartment construction has added supply, increased renter options, and slowed rent growth.
For owners working with a Monterey property management company, the important question is simple: What does this mean for the Monterey rental market? The answer requires looking beyond national headlines.
The National Picture
Across the country, developers delivered record numbers of new apartment units over the past few years. That expanded supply has given renters more choices and, in some cities, softened pricing power for landlords. In high-growth metros, multifamily communities are offering concessions and adjusting rates to remain competitive. At the same time, single-family rental inventory has shrunk as more homes transitioned back to owner-occupancy.
Those trends matter nationally. However, effective Monterey County property management depends on understanding what is happening locally — not nationally.
Monterey’s Rental Market Is Fundamentally Different
Unlike high-growth markets that added thousands of apartment units in a short period, Monterey County remains heavily supply-constrained. Coastal development restrictions, water limitations, environmental oversight, and high construction costs limit new multifamily expansion. As a result, the Monterey rental market has not experienced the type of oversupply that is moderating rents in other regions.
Demand remains steady and diverse. The Defense Language Institute, Naval Postgraduate School, CHOMP, tourism-related employment, and remote professionals relocating for lifestyle reasons all contribute to consistent rental absorption. Whether we are looking at our Pacific Grove property management, Carmel rental homes, Pebble Beach leasing, or long-term rentals in Monterey, well-positioned properties continue to lease efficiently when priced strategically.
Single-Family Homes Continue to Perform Strongly
While single-family rentals are declining nationally as a share of overall rental stock, they remain highly desirable throughout Monterey County.
Detached homes in Pacific Grove, Carmel-by-the-Sea, Monterey, and Pebble Beach attract military officers, healthcare professionals, executives, and relocating families who value privacy and outdoor space. These homes are not competing with large-scale new apartment developments because that level of construction simply has not occurred locally. For owners seeking professional Monterey property management, this distinction is critical. Single-family rental homes in our region that are priced correctly often command stable pricing due to limited new supply and consistent demand.
What This Means for Property Owners
National data can create concern if viewed without context. However, the Monterey County rental market continues to operate under different supply constraints than major metropolitan areas experiencing multifamily expansion.
Owners who rely on hyperlocal rental analysis — rather than broad national trends — are better positioned to maximize performance.
That is where experienced Monterey property management makes the difference:
• Accurate rental pricing based on neighborhood-level data
• Strategic tenant placement
• Proactive maintenance coordination
• Regulatory compliance within California’s evolving landlord-tenant laws
• Long-term asset protection
Why Local Expertise Matters
For four decades, our team has provided Monterey County property management services through multiple housing cycles. We understand water restrictions, coastal commission considerations, seasonal rental shifts, military relocation timing, and the nuances of pricing rental homes in Pacific Grove, Carmel, Monterey, and surrounding communities. National trends provide perspective. Local expertise drives results. If you would like a personalized rental market evaluation for your Monterey investment property — grounded in current Monterey rental data and local absorption trends — we would be happy to provide one.
