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Demand Fuels Surge: High-End Rentals and Inventory Pressure Quicken Single-Family Rent Growth in March, CoreLogic Reports

  • Nationally, rent growth continues to exceed pre-pandemic rates as unemployment falls
  • Low-end rental prices were up 3.2% in March, compared to high-end price gains of 5%

CoreLogic® (NYSE: CLGX), 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.

According to the U.S. Census, the occupancy rates for single-family rentals is at a generational high, which is driving up inventory pressure and, subsequently, rent growth. A recent CoreLogic survey shows that nearly 70% of consumers agree high prices for homes are causing many people to rent. However, as demand continues to drive rent prices higher, we may expect to see growing affordability challenges on the rental front as well, as 36% of consumers already feel rental options in their neighborhood are not very or not-at-all affordable.

“The CoreLogic Single-Family Rent Index shows a preference shift to standalone properties as renters seek more space in less dense areas,” said Molly Boesel, principal economist at CoreLogic. “Prior to the pandemic, rents for detached properties and attached properties grew at similar rates. However, starting in June 2020, rent growth for detached properties accelerated and by March, grew at five times the rent growth rate of attached properties.”

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): 3.2%, down from 3.8% in March 2020
  • Lower-middle priced (75% to 100% of the regional median): 3.7%, up from 3.1% in March 2020
  • Higher-middle priced (100% to 125% of the regional median): 4.2%, up from 2.9% in March 2020
  • Higher-priced (125% or more than the regional median): 5%, up from 2.8% in March 2020

Among the 20 metro areas shown in Table 1, Phoenix had the highest year-over-year increase in single-family rents in March 2021 at 11.4%. Tucson, Arizona, had the second-highest rent price growth with a gain of 10.4%. Atlanta, which had the second-lowest unemployment rate in March among the 20 metro areas, had the third highest year-over-year rent growth of 8.1% as job stability returns and families seek more space. Conversely, Boston had an annual decline of 7.7% in rent prices and has experienced the largest decrease in 20 metros’ rent prices for eight consecutive months.   

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 over 80 metropolitan areas — including 45 metros with four value tiers — and a national composite index.

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.

About the CoreLogic Consumer Housing Sentiment Study      

3,000+ consumers were surveyed by CoreLogic via Qualtrics. The study is an annual pulse of U.S. housing market dynamics concentrated on consumers looking to purchase a home, consumers not looking to purchase a home, and current mortgage holder. The survey was conducted in April 2021 and hosted on Qualtrics.

The survey has a sampling error of ~3% at the total respondent level with a 95% confidence level.

Source: CoreLogic

The data provided is for use only by the primary recipient or the primary recipient’s publication or broadcast. This data may not be re-sold, republished or licensed to any other source, including publications and sources owned by the primary recipient’s parent company without prior written permission from CoreLogic. Any CoreLogic data used for publication or broadcast, in whole or in part, must be sourced as coming from CoreLogic, a data and analytics company. For use with broadcast or web content, the citation must directly accompany first reference of the data. If the data is illustrated with maps, charts, graphs or other visual elements, the CoreLogic logo must be included on screen or website. For questions, analysis or interpretation of the data contact Amy Brennan at newsmedia@corelogic.com. Data provided may not be modified without the prior written permission of CoreLogic. Do not use the data in any unlawful manner. This data is compiled from public records, contributory databases and proprietary analytics, and its accuracy is dependent upon these sources.

About CoreLogic

CoreLogic (NYSE: CLGX), the leading provider of property insights and solutions, promotes a healthy housing market and thriving communities. Through its enhanced property data solutions, services and technologies, CoreLogic enables real estate professionals, financial institutions, insurance carriers, government agencies and other housing market participants to help millions of people find, buy and protect their homes. For more information, please visit www.corelogic.com.

CORELOGIC and the CoreLogic logo are trademarks of CoreLogic, Inc. and/or its subsidiaries.

Media Contact

Amy Brennan
newsmedia@corelogic.com