Single-Family Rent Prices Near Double-Digit Growth in August
CoreLogic, Irvine, Calif., reported rents for single-family rental properties increased 9.3 percent year-over-year, up from a 2.2 percent year-over-year increase a year ago.
“The CoreLogic Single-Family Rent Index hit a milestone in August with all major metros covered showing positive rent growth for the first time since April 2020,” the firm’s Single-Family Rent Index report said. “While increases in rents are an encouraging sign that local economies are improving, they can prove difficult for families facing affordability challenges.”
Molly Boesel, Principal Economist with CoreLogic, noted converging economic trends are driving surging single-family rent prices. “Consumer confidence has driven an uptick in demand for both renters and buyers,” she said “Meanwhile, consumers continue to relocate as they return to in-person work and school. The ongoing preference toward more living space–and slim for-sale inventory–is forcing would-be buyers back into renting, putting significant strain on the single-family rental market.”
CoreLogic examined four tiers of rental prices. National single-family rent growth across the four tiers, and the year-over-year changes, were:
• Lower-priced (75percent or less of the regional median): 7.1percent, up from 2.4percent in August 2020
• Lower-middle priced (75percent to 100percent of the regional median): 8.1percent, up from 2percent in August 2020
• Higher-middle priced (100percent to 125percent of the regional median): 9.2percent, up from 2percent in August 2020
• Higher-priced (125percent or more than the regional median): 10.5percent, up from 2.3percent in August 2020
The report said rental markets in popular tourist destinations showed particularly strong signs of recovery in August as unemployment continues to decline, air travel picks up and tourism gains more traction.
Miami had the highest year-over-year increase in single-family rents among the 20 largest U.S. metros at 21.4 percent. This represented the first time in nearly three years Phoenix did not claim the top spot. Arizona’s capital city logged the second-highest rent price growth with a 19.2 percent gain, followed by Las Vegas’ 15.4 percent gain.
After 14 months of declining rent prices, Boston logged its first annual increase as renters return to the metro for in-person work and school, CoreLogic said.