CoreLogic: Single-Family Rent Growth Down 5th Straight Month

CoreLogic, Irvine, Calif., said year-over-year single-family rent growth slowed for the fifth consecutive month in September to 10.2%, down from a high of 13.9% in April.  Additionally, rent growth this September fell below that of a year ago.

The company’s monthly Single-Family Rent Index found consistent evidence of a single-family rental market cooldown follows nearly two years of above-trend rental price hikes. The rent increase slowdown comes as inflation stretches tenants’ pocketbooks.

“High mortgage interest rates may be causing potential homebuyers to hit pause and remain renters, keeping pressure on rent prices,” said Molly Boesel, principal economist with CoreLogic. “However, the monthly rent change was negative in September, resuming the typical seasonal pattern for the first time since 2019, which could signal the beginning of rent price growth normalization.”

Other report findings:

–Lower-priced (75% or less than the regional median): 12.1%, up from 8.5% in September 2021

–Lower-middle priced (75% to 100% of the regional median): 11.3%, up from 9.4% in September 2021

–Higher-middle priced (100% to 125% of the regional median): 10.7%, up from 10.6% in September 2021

–Higher-priced (125% or more than the regional median): 8.9%, down from 11.1% in September 2021

Of the 20 metro areas surveyed, Miami posted the highest year-over-year increase in single-family rents in September at 20.1%. Orlando, Fla., recorded the second-highest gain at 18.3%, while Boston ranked third at 10.6%. St. Louis posted the lowest annual rent price gain at 5.2%.

The report said while rent growth in many fast-growing metros has decelerated compared to last September, return to offices, colleges and cities is driving rent growth higher in other metros where increases were lagging, such as Boston, New York, Chicago and Philadelphia.