Cotality: U.S. Single-Family Rent Prices Tick Upward

(Image courtesy of Mathias Reding/pexels.com)

Cotality, Irvine, Calif., released its latest Single-Family Rent Index, finding they increased by 1.8% year-over-year in July.

That runs behind last year’s annual increase of 2.3%.

On a monthly basis, rents increased 0.4%, a return to normal seasonal patterns.

High-priced single-family rentals posted a 2.6% annual increase, but low-priced rentals rose 0.6%. For detached rentals, growth was 1.9%, and for attached rentals it was 1.7%.

“The recent divergence should be viewed in a longer-term context. Over the past five years, rents for the low-price tier increased 26%, slightly more than the 24% gain for high-priced rentals. That suggests recent strength at the upper end may be less of a fundamental shift in demand and more of a catch-up period, as cumulative rent growth remains higher in the low-price tier despite the recent slowdown,” said Molly Boesel, senior principal economist at Cotality.

By metro area, Chicago saw price growth of 5%, followed by Detroit at 3.7%, Philadelphia at 3.5%, New York at 3.3% and Miami at 1.2%.

Houston saw just 0.2% growth, followed by Washington, D.C.,and Dallas which saw 0.6%.