- Nationwide, single-family rent prices increased by 2.6% year over year in September.
- Rental costs declined by -0.2% from August to September, which is in line with seasonal trends recorded over the 15 years before the pandemic.
- Lower-priced rental gains have outpaced the high-priced tier over the last three years.
- St. Louis led the nation for annual rent growth, while Austin, Texas; Las Vegas and Miami again posted declines.
IRVINE, Calif., November 21, 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 U.S. single-family rent growth dropped to the lowest level in three years in September, but the 2.6% increase is down only slightly from the pre-pandemic average. Relatively affordable metro areas continue to gain momentum, with St. Louis again leading the country for year-over-year rental cost hikes. Meanwhile, Miami — which led the U.S. for rent increases one year ago at almost 20% — was one of three U.S. markets to see prices decline annually in September. A recent CoreLogic analysis shows that single-family rental costs in Miami consumed more than half of the area’s median income, making it the second-least affordable major metro in the country.
“Single-family rent growth eased again in September and is now back to the rate recorded before the pandemic,” said Molly Boesel, principal economist for CoreLogic. “While low-tier rental gains are slowing, they have still surpassed those of their higher-priced counterparts since early 2020. Slowing month-over-month rent growth in September reflects typical seasonal patterns, but indications are that annual gains will remain positive through the rest of 2023.”
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 3.6%, down from 12% in September 2022
- Lower-middle priced (75% to 100% of the regional median): up 3.1%, down from 11.4% in September 2022
- Higher-middle priced (100% to 125% of the regional median): up 2.3%, down from 10.6% inSeptember 2022
- Higher-priced (125% or more than the regional median): up 1.9%, down from 8.7% in September 2022
- Attached versus detached:Attached single-family rental prices grew by 3% year over year in September, compared with the 2% 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 September 2023, at 6.5%. San Diego registered the second-highest annual gain at 6%, followed by Boston at 5.1%. Austin, Texas (-1.4%), Miami (-0.7%) and Las Vegas (-0.2%) continued to post annual declines.
The next CoreLogic Single-Family Rent Index will be released on December 19, 2023, featuring data for October 2023. For ongoing housing trends and data, visit the CoreLogic Intelligence Blog: corelogic.wpengine.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 Rental Trends. Rental Trends 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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