- Nationwide, rent prices were up by 8.8% year over year in October, the lowest rate of growth recorded since June 2021
- Three of four tracked price tiers posted lower rental cost increases than in October 2021, with only the lowest tier seeing a 1.3 percentage point acceleration in growth
- Miami continued to lead the country for rent growth, posting nearly double the national increase
IRVINE, Calif., December 20, 2022—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. rental price growth slowed for the sixth straight month on an annual basis in October to 8.8%, the lowest rate of appreciation in more than a year but still three times higher than the pre-pandemic level. Despite the continued cooling, a shortage of available properties is keeping costs elevated, a trend that is partially fueling year-over-year gains in the lower-priced tier. Miami led the nation for rent growth for the 15th consecutive month at 16.3%, but gains there have slowed dramatically since the spring when they hit 40.8%.
“Single-family rents decreased again on a monthly basis in October but were still up year over year,” said Molly Boesel, principal economist at CoreLogic. “While rents typically experience a seasonal decline in October, this year’s decrease was larger than average and could point to prices slowing more sharply than expected in the coming months.”
To gain a detailed view of single-family rental prices, CoreLogic examines four tiers of rental prices. National single-family rent growth across the four tiers, and the year-over-year changes, were as follows:
- Lower-priced (75% or less than the regional median): 11%, up from 9.7% in October 2021
- Lower-middle priced (75% to 100% of the regional median): 9.9%, down from 10.3% in October 2021
- Higher-middle priced (100% to 125% of the regional median): 8.8%, down from 11.4% inOctober 2021
- Higher-priced (125% or more than the regional median): 7.5%, down from 11.4% in October 2021
Of the 20 metro areas shown in Table 1, Miami posted the highest year-over-year increase in single-family rents in October 2022, at 16.3%. Orlando, Florida recorded the second-highest gain at 15.5%, while Boston ranked third at 12.1%. Honolulu saw the lowest annual rent price gain at 4.8%.
Differences in rent growth by property type emerged after COVID-19 took hold, as renters sought standalone properties in lower-density areas. This trend drove an uptick in rent growth for detached rentals in 2021, while the gains for attached rentals were more moderate. As single-family rent prices continued growing rapidly, preferences for attached rentals began to emerge in early 2022, and by summer, they had higher increases than detached properties. Attached single-family rental prices grew 9.5% year over year in October compared to the 7.6% increase for detached rentals.
The next CoreLogic Single-Family Rent Index will be released on January 17, 2023, featuring data for November 2022. 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 47 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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