Single-Family Rent Growth Stagnates, Cotality Finds

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Cotality, Irvine, Calif., reported annual single-family rent growth in September hit its lowest point since 2010.

Single-family rent prices in September increased just 1% from September 2024.

“The story of the single-family rental market is one of deceleration at the national level, but with significant local nuances. Annual single-family rent growth in September hit its lowest point in over 15 years–since June 2010. This is welcome news for renters struggling with affordability,” said Molly Boesel, senior principal economist at Cotality. “However, despite this slowdown, single-family rents are still substantially higher, up 29% over the past five years, adding about $7,300 per year to the national average rental bill, a financial burden that has consumed about one-third of the increase in median family income over that time.”

Broken down by sector, rent for high-end properties increased 1.3% year-over-year in September, a drop from the 3.2% gain in September 2024. Low-end rental property prices were up 1%, compared with 2.5% year-over-year in September 2024.

Chicago saw the highest single-family rent growth among the 10 largest metro areas, at 4.3% year-over-year. Washington, D.C., saw a 3.1% increase. Philadelphia was next at 2%, followed by Los Angeles at 1.5%. Atlanta rounded out the top five at 1.2%.

Two of the largest metros–Miami and Dallas, saw annual rent decreases, at 0.7% and 1.1% respectively.

“The national slowing does not tell the whole story. In many large metros, market conditions have shifted enough to cause rent declines, with 26% of the largest 50 metros seeing decreases in our Single-Family Rent Index,” Boesel continued. “Markets like Dallas and Miami showed large decreases in the SFRI. Yet, for renters in these markets, the historical pain remains acute, as five-year rent increases in Miami and Dallas were $850 and $610 per month, respectively. This underscores the challenge: while the pace of growth is easing and even falling, the cumulative impact of past rent hikes continues to put immense pressure on household budgets.”