Chat
Chat with Sales Hours: Monday-Friday 8:30 a.m. - 4:30 p.m. (CST)
Contact Sales
Call Sales Toll-Free 1-(866) 774-3282 Hours: Monday-Friday 7 a.m. - 5 p.m. (CST)
Product Login
Product Log-in
Product Support
Product Support
Email Sales
Contact Sales
After Hours
  • Support
  • Sign In Sign In
  • AUS NZ UK
CoreLogic - Home
  • Solutions
    view solutions by:

    Data Solutions

    • Lead Generation
    • Property Data
    • Location Intelligence

    Real Estate

    • Multiple Listing Enterprise
    • Agent & Broker

    Mortgage

    • Origination
    • Servicing
    • Appraisal
    • Commercial Property Tax

    Insurance

    • Hazard Risk
    • Catastrophe Risk Management
    • Risk Evaluation
    • Underwriting Automation
    • Weather
    • Claims Automation
    • Restoration
    • INTRCONNECT

    Mortgage Lenders

    • Origination

    Mortgage Servicers

    • Residential Property Tax
    • Default & Loss Mitigation
    • Portfolio Insight & Monitoring

    Mortgage Appraisers

    • Appraisal

    Real Estate Agents & Brokers

    • Agents & Brokers

    Real Estate MLS

    • Multiple Listing Enterprises

    Commercial Real Estate Owners

    • Commercial Property Tax

    Marketing Departments

    • Property Data

    Insurance Underwriters

    • Risk Evaluation
    • Underwriting Automation
    • Hazard Risk
    • Catastrophe Risk Management

    Insurance Risk Managers

    • Risk Evaluation
    • Hazard Risk
    • Catastrophe Risk Management

    Insurance Claims

    • Claims Automation
    • Restoration Contractors
    • Weather Verification

    Construction Contractors

    • Restoration Contractors

    General

    • Location Intelligence
    • Lead Generation
    • Data Solutions
  • Resources

    Reports

    • Climate Change
    • Construction Cost Update
    • Construction Insights
    • Home Price Insights
    • Homeowner Equity Insights
    • Loan Performance Insight
    • Mortgage Fraud
    • Property Tax Delinquency
    • Single-Family Rent Index

    Insight Blogs

    • Hazard HQ
    • Office of Chief Economist
    • Affordable Housing
    • Homebuying
    • Insurance
    • Other Articles

    More Resources

    • Events
    • Case Studies
    • White Papers
    • Podcasts
    • Quick Takes
  • Company
    • About
    • Leadership
    • Newsroom
    • Contact
    • Careers
  • Search
CoreLogic - Home
  • Solutions
  • Resources
  • Company

    • About
    • Leadership
    • Newsroom
    • Contact
    • Careers
  • Accounts

    • Products Sign-in
  • Contact

    • Sales Contact
    • Product Support
  • Regions

    • Australia
    • New Zealand
    • United Kingdom
  • Social

    • Facebook
    • Instagram
    • Linkedin
    • Twitter
    • Youtube
Solutions
VIEW BY:
  • Data Solutions

    • Lead Generation
    • Property Data
    • Location Intelligence
  • Real Estate

    • Multiple Listing Enterprise
    • Agent & Broker
  • Mortgage

    • Origination
    • Servicing
    • Appraisal
    • Commercial Property Tax
  • Insurance

    • Hazard Risk
    • Catastrophe Risk Management
    • Risk Evaluation
    • Underwriting Automation
    • Weather
    • Claims Automation
    • Restoration
    • INTRCONNECT
  • Mortgage Lenders

    • Origination
  • Mortgage Servicers

    • Residential Property Tax
    • Default & Loss Mitigation
    • Portfolio Insight & Monitoring
  • Mortgage Appraisers

    • Appraisal
  • Real Estate Agents & Brokers

    • Agents & Brokers
  • Real Estate MLS

    • Multiple Listing Enterprises
  • Commercial Real Estate Owners

    • Commercial Property Tax
  • Marketing Departments

    • Property Data
  • Insurance Underwriters

    • Risk Evaluation
    • Underwriting Automation
    • Hazard Risk
    • Catastrophe Risk Management
  • Insurance Risk Managers

    • Risk Evaluation
    • Hazard Risk
    • Catastrophe Risk Management
  • Insurance Claims

    • Claims Automation
    • Restoration Contractors
    • Weather Verification
  • Construction Contractors

    • Restoration Contractors
  • General

    • Location Intelligence
    • Lead Generation
    • Data Solutions
Resources
  • Reports

    • Climate Change
    • Construction Cost Update
    • Construction Insights
    • Home Price Insights
    • Homeowner Equity Insights
    • Loan Performance Insight
    • Mortgage Fraud
    • Property Tax Delinquency
    • Single-Family Rent Index
  • Insight Blogs

    • Hazard HQ
    • Office of Chief Economist
    • Affordable Housing
    • Homebuying
    • Insurance
    • Other Articles
  • More Resources

    • Events
    • Case Studies
    • White Papers
    • Podcasts
    • Quick Takes

Home / Intelligence / Podcast/Vodcast / Frank Nothaft Vlog / Rental Market: Tenant Mobility, Rents and Property Prices

ABOUT THE AUTHOR
Frank Nothaft
Frank Nothaft
Former Executive, Chief Economist, Office of the Chief Economist
View Profile
  • January 11, 2021

Rental Market: Tenant Mobility, Rents and Property Prices

Tenant moves slowed early in the pandemic and have rebounded

  • Applications for rental homes fell sharply early in the pandemic and have rebounded.
  • Apartment building rents fell in the third quarter, whereas single-family rents continued to rise.
  • Multifamily property values fell 10% on average across 10 metros in the second quarter.

The rental market provides shelter to one-third of American households.  Let’s review how the pandemic has affected tenant mobility, rents, and property values.

Applications by prospective tenants for a rental home generally pick-up each spring.  The President’s declaration of a national emergency on March 13 triggered Shelter-In-Place restrictions and disrupted the seasonal rise.  By the end of March applications for rental homes were down 42% from the same period one year earlier. (Figure 1) As Shelter-In-Place orders were relaxed, applications rebounded.  By the end of May applications were running at the same pace as the year before and continued at the prior year’s pace for the rest of 2020.

Figure 1: Applications Rebounded By May As Restrictions Were Lifted

But the types of rental homes that tenants were looking for appears to have shifted away from high-density apartment buildings and to low-density single-family homes.  Rent growth slowed after the pandemic began as applications for vacant homes declined sharply.  Even though tenant applications rebounded late spring, tenants revealed a preference for lower density structures. Effective rents declined 1.2% in apartment buildings in the third quarter as vacancy rates rose and property managers often provided concessions to attract tenants.  In contrast, the CoreLogic Single-Family Rent Index rose 2.1%. (Figure 2)

Figure 2: Rent Growth Slowed When Pandemic Declared

Higher vacancy and lower effective rent result in reduced net operating income.  Using CoreLogic public record data to create a multifamily price index, we found that multifamily values fell about 10% in the second quarter, the first annual decline since the Great Recession.  With cap rates declining to a record low in the third quarter, property values rose slightly. (Figure 3) In comparison, the CoreLogic Home Price Index for homes priced between 75% and 100% of the median – the price range that single-family rentals often are within – had annual increases of 5% and 7% in the second and third quarters, respectively.

Figure 3: Multifamily Prices Dropped 10% In 2020q2 (Year-over-year)

The first two months of the pandemic temporarily delayed tenant mobility, but the effect on tenants’ preferences for shelter appears to be more lasting.  Based on rent growth and property valuations, tenant desire for single-family rental has increased at the expense of high-rise apartment buildings.

© 2021 CoreLogic, Inc. All rights reserved.

Get the CoreLogic Economic Outlook for January 2021 on YouTube. Each month, CoreLogic Chief Economist Dr. Frank Nothaft will provide data driven analysis for the economy and property industry. For more insights, subscribe to our YouTube channel.

Note: Yanling Mayer provided modeling expertise to construct the multifamily price index.  The 10-metro composite index is a weighted average of repeat-sales indexes estimated separately for 10 metropolitan areas; the weights are the dollar value of rent payments per metro, using the median rent and number of occupied rental homes from the American Community Survey.  The 10 metropolitan areas are New York, Los Angeles, Chicago, Atlanta, Miami, Phoenix, Portland, San Diego, San Francisco, and Seattle.

  • Category: Frank Nothaft Vlog, Intelligence, Podcast/Vodcast
  • Tags: Market Trends, Rental Property
ABOUT THE AUTHOR
Frank Nothaft
Frank Nothaft
Former Executive, Chief Economist, Office of the Chief Economist
View Profile

Related Posts

Header Intelligence Protect storm HHQ hazard
Climate Change

2023 Severe Convective Storm Risk Report

As rising global temperatures continue to contribute to increasingly hazardous wildfire seasons, it is more important than ever for homeowners, insurers, and governments to understand the risk these hazards pose to their communities.

March 31, 2023
Construction worker framing a house
Construction Insight

Quarterly Construction Insights – Q1 2023

CoreLogic tracks construction cost for commercial, residential and agricultural construction of all types of goods (labor and materials) throughout the United States and Canada.

March 30, 2023
Jan23LPIPromo
Blogs

Loan Performance Insights – March 2023

U.S. mortgage delinquency and foreclosure rates continued to hold near record lows in January.

March 30, 2023

About Corelogic

  • Newsroom
  • Leadership
  • Careers
  • Ethics & Compliance

Accounts

  • Products Sign-in

Contact

  • Sales Contact
  • Product Support

Regions

  • CoreLogic Australia
  • CoreLogic New Zealand
  • CoreLogic UK

Follow & Connect

  • Facebook
  • Instagram
  • Linkedin
  • Twitter
  • YouTube
© 2023 CoreLogic. All rights reserved.
  • Legal
  • Privacy Policy
  • CCPA
  • Cookie Preferences
  • Security
  • Sitemap
  • Accessibility
  • Legal
  • Privacy Policy
  • CCPA
  • Cookie Preferences
  • Security
  • Sitemap
  • Accessibility