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

• U.S. single-family rents grew by 3.3% percent year over year in June, the lowest such gain since autumn 2020.
• Monthly rent growth was 1.1%, nearly identical to the pre-pandemic average of 1% for June.
• All four tracked price tiers saw annual rental gains decrease by about 10 percentage points since June 2022.
• Chicago led the nation for year-over-year rent growth in June 2023, at 6.6%.
• Las Vegas posted an annual rental cost loss for the fourth straight month, at -1.2%.

IRVINE, Calif., August 25, 2023—CoreLogic®, a leading global property information, analytics and data-enabled solutions provider, today released its latest Single-Family Rent Index (SFRI), which analyzes single-family rent price changes nationally and across major metropolitan areas.  

Annual single-family home rent growth eased for the 14^th consecutive month in June, registering a 3.3% gain, which remains in close range of the pre-pandemic growth rate. 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.”

To gain a detailed view of single-family rental prices across different market segments, 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 as follows:

• 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% inJune 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

Of the 20 metros shown in Table 1, Chicago posted the highest year-over-year increase in single-family rents in June 2023, at 6.6%. Boston registered the second-highest annual gain at 5.9%, followed by Orlando, Florida at 5.5%. Las Vegas saw an annual rent price decline of -1.2%.

The next CoreLogic Single-Family Rent Index will be released on September 19, 2023, featuring data for July 2023. For ongoing housing trends and data, visit the CoreLogic Intelligence Blog: www.corelogic.com/intelligence.

Methodology

The single-family rental market accounts for half of the rental housing stock, yet unlike the multifamily market, which has many different sources of rent data, there are minimal quality adjusted single-family rent transaction data. The CoreLogic Single-Family Rent Index (SFRI) serves to fill that void by applying a repeat pairing methodology to single-family rental listing data in the Multiple Listing Service. CoreLogic constructed the SFRI for close to 100 metropolitan areas — including 43 metros with four value tiers — and a national composite index. The indices are fully revised with each release to signal turning points sooner.

The CoreLogic Single-Family Rent Index analyzes data across four price tiers: Lower-priced, which represent rentals with prices 75% or below the regional median; lower-middle, 75% to 100% of the regional median; higher-middle, 100%-125% of the regional median; and higher-priced, 125% or more above the regional median.

Median rent price data is produced monthly by CoreLogic RentalTrends. RentalTrends is built on a database of more than 11 million rental properties (over 75% of all U.S. individual owned rental properties) and covers all 50 states and 17,500 ZIP codes.

Source: CoreLogic

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About CoreLogic

CoreLogic is a leading global property information, analytics and data-enabled solutions provider. The company’s combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.

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