- Annual U.S. single-family rent growth slowed to 2.9% in August, the 16th consecutive month of declines.
- Single-family rents have increased by 30% nationwide since February 2020.
- August’s year-over-year attached rental costs gains (3.5%) continued to outpace those of detached properties (2.3%).
- As in the previous month, St. Louis and Chicago saw the nation’s highest year-over rent growth in August, while some major Sun Belt metros continued to post small losses.
IRVINE, Calif., October 17, 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.
Although annual U.S. single-family rent growth eased again in August, renters are still feeling the pinch. According to a recent CoreLogic analysis, the average American renter household spends about 40% of its income on housing costs, with lower-income tenants bearing much of the brunt of inflation. The SFRI’s low tier saw the largest year-over-year rental cost gain in August (up by 4.2%), while the high tier registered a 2.4% annual increase.
“While annual single-family rent growth has returned to a moderate pace, more than three years of substantial increases will have a lasting impact on tenants’ budgets,” said Molly Boesel, principal economist for CoreLogic. “Single-family rents grew by 30% since February 2020, and small drops in some areas barely put a dent in the overall, cumulative increase. For example, even though rents in the Miami metro area have declined by 0.5% since August 2022, they are still 51% higher than they were before the pandemic began.”
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 4.2%, down from 12.6% in August 2022
- Lower-middle priced (75% to 100% of the regional median): up 3.3%, down from 12.7% in August 2022
- Higher-middle priced (100% to 125% of the regional median): up 2.6%, down from 12.1% inAugust 2022
- Higher-priced (125% or more than the regional median): up 2.4%, down from 9.8% in August 2022
- Attached versus detached:Attached single-family rental prices grew by 3.5% year over year in August, compared with the 2.3% 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 August 2023, at 7%. Chicago registered the second-highest annual gain at 5.7%, followed by Boston and San Diego (both 5.6%). Austin, Texas (-0.9%), Las Vegas (-0.8%) and Miami (-0.5%) again saw slight year-over-year rental cost decreases.
The next CoreLogic Single-Family Rent Index will be released on November 21, 2023, featuring data for September 2023. For ongoing housing trends and data, visit the CoreLogic Intelligence Blog: stage.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 metro 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 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.
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