Annual Single-Family Rent Growth Relaxes Again in September, CoreLogic Finds

(Image courtesy of CoreLogic)

CoreLogic, Irvine, Calif., found annual single-family rent growth dropped to the lowest point in three years in September with a 2.6% year-over-year increase.

However, that’s only down slightly from the pre-pandemic average, per CoreLogic’s Single-Family Rent Index.

On a monthly basis, rental costs declined by 0.2% from August to September, consistent with pre-pandemic seasonal trends.

“Single-family rent growth eased again in September and is now back to the rate recorded before the pandemic,” said Molly Boesel, Principal Economist for CoreLogic. “While low-tier rental gains are slowing, they have still surpassed those of their higher-priced counterparts since early 2020. Slowing month-over-month rent growth in September reflects typical seasonal patterns, but indications are that annual gains will remain positive through the rest of 2023.”

In terms of property type:

• Lower priced rentals, defined as 75% or less than the regional median, were up 3.6% in September, down from 12% in September 2022.

• Lower-middle priced rentals, defined as 75% to 100% of the regional median, were up 3.1%, in September, down from 11.4% in September 2022.

• Higher-middle priced rentals, defined as 100% to 125% or more of the regional median, were up 2.3% in September, down from 10.6% in September 2022.

• Higher-priced, defined as 125% or more than the regional median, were up 1.9% in September, down from 8.7% in September 2022.

• Attached single-family rental prices grew by 3% year over year in September, compared with the 2% increase for detached rentals