- While single-family rent price growth decelerated nationwide and in many major metro areas, it continued to post double-digit year-over-year gains in June
- Preferences for rental types could be shifting, as annual attached rent price growth (13.2%) slightly outpaced detached price growth (12.8%) for the first time since February 2020
IRVINE, Calif., August 16, 2022 — 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.
Single-family rent prices remain elevated, up 13.4% from one year earlier, but have continued to relax compared with growth seen earlier this year. This deceleration could be partially due to worries over an impending economic slowdown, even though the job market added 528,000 positions in July, returning the employment rate to its level prior to the COVID-19 outbreak. Still, as the cost of owning a home continues to grow significantly, many Americans are shut out of the housing market, forcing them to keep renting.
“While the annual growth in single-family rents is nearly double that of a year ago and is still near a record level, price growth began decelerating in June,” said Molly Boesel, principal economist at CoreLogic. “Nationwide, both year-over-year and month-over-month growth were slower in June than they were earlier this year, and roughly half of the largest U.S. metro areas experienced a slowdown in annual growth in June.”
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): 14.2%, up from 5.6% in June 2021
- Lower-middle priced (75% to 100% of the regional median): 14.2%, up from 6.4% in June 2021
- Higher-middle priced (100% to 125% of the regional median): 14%, up from 7.1% inJune 2021
- Higher-priced (125% or more than the regional median): 12.5%, up from 9.4% in June 2021
Of the 20 metro areas shown in Table 1, Miami posted the highest year-over-year increase in single-family rents in June 2022 at 35.5%, the 11th consecutive month it has topped the nation for growth. Orlando, Florida and San Diego recorded the second- and third-highest gains at 23.3% and 15.2%, respectively. Honolulu and St. Louis posted the lowest annual rent price gains, both at 6.6%
Differences in rent growth by property type emerged after COVID-19 took hold, as renters sought standalone properties in lower-density areas. This trend drove an uptick in rent growth for detached rentals in 2021, while the gains for attached rentals were more moderate. However, in June 2022, this trend shifted, as attached rental property prices grew by 13.2% year over year, compared to the 12.8% increase for detached homes, the first time since February 2020 that attached rental price growth outpaced detached rental price growth. Still, the overall rent price growth for detached homes (24.9%) versus attached homes (18.8%) remains much stronger on a two-year basis.
The next CoreLogic Single-Family Rent Index will be released on September 20, 2022, featuring data for July 2022. 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 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.
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CoreLogic is a leading global property information, analytics and data-enabled solutions provider. The company’s combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit stage.corelogic.com.
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