RENT Check, our monthly rental report, displays the ratio of closed rentals to home sales in the MLS each month. We call that ratio the RENT Check Quotient, RCQ for short. Even if you don’t work rentals, knowing if rentals are sucking up the buyer pool can be helpful. Below we’ve compiled the RCQ from all previous RENT Check reports into a chart, which we intend on publishing semi-annually: (The individual RCQ values can always be found on this page each month.)
How you can compile the RENT Check RCQ
It’s easy and you can do it yourself! First, start a Rental Quick Search in flexmls. Then select Status: Closed and choose a Lease Start Date for the period you would like to evaluate. Add any criteria you would like, for example a ZIP code you work. Get the count of closed rentals.
Perform a similar Residential Quick Search, choose Close of Escrow date under Closed with the dates you chose for the first search. Apply any similar criteria you applied in the Rental search, then get a count.
Now, divide the number of closed rentals by the number of closed residential sales (3500/5400). The result will be a decimal, that’s the RCQ. Move the decimal point two places to the right, drop the leading zero and add a percent sign to show it as a percentage, example: 0.566 -> 56.6%. Download the historical RCQ data here.