- In July, single-family rent growth increased five-fold year over year for the second consecutive month
- Rent growth in popular tourist destinations continues to pick up steam
IRVINE, Calif., September 21, 2021— 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. July 2021 data shows a national rent increase of 8.5% year over year, up from a 1.7% year-over-year increase in July 2020.
July marked another month of rapid growth for the single-family rental market, with rent gains exceeding pre-pandemic rates across all price tiers for the fourth consecutive month. Strong economic and employment growth buoyed rent growth to a 16.5-year high, with the largest increases seen in single-family detached properties.
“Single-family rent prices continue to climb as national economic recovery, the overcrowded purchase market and deficient inventory puts pressure on the rental market,” said Molly Boesel, principal economist at CoreLogic. “With eviction moratoriums coming to a close this fall, and single-family rental inflation showing no signs of slowing over the next several months, affordability challenges may begin to pose a more urgent concern for renters.”
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): 5.9%, up from 2.4% in July 2020
- Lower-middle priced (75% to 100% of the regional median): 7.2%, up from 1.6% in July 2020
- Higher-middle priced (100% to 125% of the regional median): 8%, up from 1.7% inJuly 2020
- Higher-priced (125% or more than the regional median): 9.8%, up from 1.7% in July 2020
Among the 20 metro areas shown in Table 1, Phoenix had the highest year-over-year increase in single-family rents in July 2021 at 18.9%. As more of the population got vaccinated and opted for summer travel, rental markets in popular tourist destinations that were hard-hit by the pandemic also showed strong signs of recovery in July as employment picked back up. Miami logged the second-highest rent price growth with a gain of 17%, followed by Las Vegas’ gain of 14.3%. And while Boston has consistently experienced the largest decrease in the 20 metros’ rent prices every month for a year now (with an annual decline of 0.6% in July) the area’s rate of decline is slowing compared to previous months.
The next CoreLogic®, Single-Family Rent Index will be released on October 19, 2021, featuring data for August 2021. 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 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.
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