Annual Single-Family Rent Growth Slows Again in June, CoreLogic Reports

(Courtesy CoreLogic)

CoreLogic, Irvine, Calif., said annual single-family home rent growth eased for the fourteenth consecutive month in June.

SFR rents registered a 3.3% gain, which is close to the pre-pandemic growth rate, the CoreLogic Single-Family Rent Index reported. Lower-priced rentals continue to see more demand and thus greater annual gains than their higher-priced counterparts, a trend that is partially due to declining affordability and one that has been increasingly exacerbated by inflation.

“Annual single-family rent growth has returned to its long-term, pre-pandemic rate, but increases for attached properties were one-and-a half-times that of detached properties in June; this is historically not the case, as both housing types tend to rise at the same pace,” said Molly Boesel, principal economist for CoreLogic. “However, while rent growth for attached properties lagged that of detached properties in 2020 and 2021, it has outpaced the latter in 2022 to 2023. Rent growth for attached homes is projected to continue to exceed that of detached properties as the market balances.”

CoreLogic examines four tiers of rental prices and two property-type tiers. National single-family rent growth across those tiers, and the year-over-year changes, were:

• Lower-priced (75% or less than the regional median): up 4.9%, down from 14.3% in June 2022

• Lower-middle priced (75% to 100% of the regional median): up 3.9%, down from 14.5% in June 2022

• Higher-middle priced (100% to 125% of the regional median): up 3.5%, down from 14.2% in June 2022

• Higher-priced (125% or more than the regional median): up 2.3%, down from 12.2% in June 2022

• Attached versus detached: Attached single-family rental prices grew by 4% year over year in June, compared with the 2.6% increase for detached rentals