Single-Family Rents Increased Fastest in The Desert Southwest

US Single-Family Rents Up 2.9% Year Over Year in June

By Molly Boesel Housing Affordability, Property Rental

  • Rents for lower-priced homes increased faster than those of higher-priced homes in June.
  • Phoenix once again outpaced many other large metros for rent increases.
  • San Diego and Houston had the largest deceleration in rent growth.

U.S. single-family rents increased 2.9% year over year in June 2019, down from a 3% increase in June 2018, according to the CoreLogic Single-Family Rent Index (SFRI). The index measures rent changes among single-family rental homes, including condominiums, using a repeat-rent analysis to measure the same rental properties over time. Single-family rents started climbing steadily in 2010, and during the past 12 months annual rent increases have stabilized, fluctuating between 2.9% and 3.2%.  

National Single-Family Rent Index Year-Over-Year Percent Change By Price Tier

Using the rent index to analyze specific price tiers reveals important differences. Figure 1 shows that the index’s overall growth in June 2019 was propped up by low-end rentals, defined as properties with rents 75% or less of a region’s median rent. Rents on lower-priced rental homes increased 3.6% year over year and rents for higher-priced homes, defined as properties with rents more than 125% of the regional median rent, increased 2.7% year over year.

Single-Family Rent Index Year-Over-Year Percent Change in 20 Markets

Rent growth varies significantly across metro areas[1]. Figure 2 shows the year-over-year change in the rental index for 20 large metropolitan areas in June 2019. For the seventh consecutive month, Phoenix had the highest year-over-year rent growth this June with an increase of 7.1%, followed by Tucson (6.8%) and Las Vegas (5.8%). Miami had the lowest rent growth in June, increasing by just 1.1% from the prior year. San Diego and Houston had the largest deceleration in rent growth in June. The pace of annual rent growth in San Diego fell 2.5 percentage points, from 4.1% in June 2018 to 1.6% in June 2019. The growth rate fell by 2.4 percentage points in Houston, from 3.9% in June 2018 to 1.5% in June 2019.

[1] Metro areas used in this report are Metropolitan Statistical Areas and Metropolitan Divisions where available. The SFRI is computed for 75 metros.

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