- U.S. single-family rents posted a 3.1% year-over-year gain in July, the 15th consecutive month of deceleration but in line with pre-pandemic trends.
- Low-end rental gains were up by 4.6% on an annual basis in July, compared with 2.3% growth for high-end rentals.
- St. Louis posted the nation’s highest year-over-year rent growth in July, at 7.3%.
- Three U.S. metro areas saw annual rent declines from July 2022: Las Vegas (-1%), Miami (-0.6%) and Austin, Texas (-0.5%).
IRVINE, Calif., September 19, 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.
U.S. rent growth continued to relax year over year in July, falling to 3.1%, but that is still in line with the historic average recorded before 2020. More affordable areas of the country, such as St. Louis and Chicago, appear to be gaining popularity with renters, posting annual growth that outpaces the national average. Meanwhile, some Sun Belt markets that saw high rental gains one year ago are now near the bottom of the list for appreciation.
“While U.S. single-family rent growth has now reverted to its long-term average of about 3%, three U.S. metros recorded annual cost decreases in July,” said Molly Boesel, principal economist for CoreLogic. “However, because the SFRI peaked in these metros in July 2022, the annual decreases represent a plateauing of costs rather than larger weaknesses in single-family rental markets.”
“But even with the small annual decreases in rent growth,” Boesel continued, “the gains of the past few years are unlikely to be totally erased in the near future. For example, Miami recorded a 0.6% decline in annual rent growth in July 2023, but the gain since July 2020 has registered 55%.”
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 4.6%, down from 13.8% in July 2022
- Lower-middle priced (75% to 100% of the regional median): up 3.7%, down from 13.6% in July 2022
- Higher-middle priced (100% to 125% of the regional median): up 2.9%, down from 13.3% inJuly 2022
- Higher-priced (125% or more than the regional median): up 2.3%, down from 11.1% in July 2022
- Attached versus detached:Attached single-family rental prices grew by 3.8% year over year in July, compared with the 2.4% increase for detached rentals
Of the 20 metros shown in Table 1, St. Louis posted the highest year-over-year increase in single-family rents in July 2023, at 7.3%. Chicago registered the second-highest annual gain at 6.3%, followed by Boston and San Diego (both 5.7%). Las Vegas (-1%), Miami (-0.6%) and Austin, Texas (-0.5%) saw slight year-over-year rental cost decreases.
The next CoreLogic Single-Family Rent Index will be released on October 17, 2023, featuring data for August 2023. For ongoing housing trends and data, visit the CoreLogic Intelligence Blog: www.corelogic.com/intelligence.
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.
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