—US single-family rent prices increased 3% year over year in August 2019—
- Phoenix had the highest year-over-year rent price increase at 6.6%
- Low-end rent prices were up 3.7%, compared to high-end price gains of 2.7%
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 among 20 metropolitan areas. Data collected for August 2019 shows a national rent increase of 3%, compared to 3.1% in August 2018.
Low rental home inventory, relative to demand, fuels the growth of single-family rent prices. The SFRI shows single-family rent prices have climbed between 2010 and 2019. However, overall year-over-year rent price increases have slowed since February 2016, when they peaked at 4%, and have stabilized over the last year with a monthly average of 3%.
August marked the 64th consecutive month in which low-end rentals propped up national rent growth. Rent prices among this tier, defined as properties with rent prices less than 75% of the regional median, increased 3.7% year over year in August 2019, down from a gain of 4.1% in August 2018. Meanwhile, high-end rentals, defined as properties with rent prices greater than 125% of a region’s median rent, increased 2.7% in August 2019, up from a gain of 2.6% in August 2018.
Among the 20 metro areas shown in Table 1, and for the ninth consecutive month, Phoenix had the highest year-over-year increase in single-family rents in August 2019 at 6.6% (compared to August 2018). Las Vegas and Tucson, Arizona experienced the second- and third-highest rent gains in August at 5.8% and 5.3% respectively, while Miami saw the lowest rent increases of all analyzed metros at 1.5%.
Metro areas with limited new construction, low rental vacancies and strong local economies that attract new employees tend to have stronger rent growth. Phoenix experienced high year-over-year rent growth in August, driven by the annual employment growth of 2.7%. This is compared with the national employment growth average of 1.4%, according to data from the United States Bureau of Labor Statistics. Orlando, Florida also experienced an elevated annual employment growth of 4%, which played a role in its above-average, year-over-year rent increase of 3.7% in August.
“National rent increases have settled in around 3% over the past year, and the rate of increase for entry-level rentals has eased over the past six months,” said Molly Boesel, principal economist at CoreLogic. “However, home-buying affordability remains a top concern across generations and is keeping many consumers in the rental market. If this trend continues, we may see another uptick in rent price growth in the coming year, particularly in urban areas where we’re seeing increasing demand from millennials.”
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.
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 Allyse Sanchez at corelogic@ink-co.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, acquire 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.