- U.S. single-family rental prices were up by 2.5% year over year in October, marking the 18th straight month of annual deceleration.
- Despite slowing growth, the median renter household now pays about $500 more per month than it did in early 2020.
- The lower-priced rental tier continued to post stronger annual growth than the three higher tiers.
- San Diego topped tracked metro areas for year-over-year rental price increases, at 5.2%, followed closely by St. Louis, Boston and New York.
IRVINE, Calif., December 19, 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.
U.S. year-over-year rent growth continued its slow cooling in October, slipping to 2.5% and marking a year of single-digit annual increases. Though October’s rent price growth was the lowest since the summer of 2020, cumulative increases across the country have registered almost 30% since February of that year, which has impacted tenants’ budgets. Although the relatively affordable St. Louis metro area still saw growth that was twice the national average, expensive areas such as Boston, New York and San Diego remained in the top five for gains, indicating renewed demand for rental properties near major U.S. coastal metro areas and job markets.
“Single-family rent increases continued to moderate in October, slowing to the lowest annual growth rate in more than three years,” said Molly Boesel, principal economist for CoreLogic. “In addition, this marked the largest drop between September and October in more than a decade. While slowing rent growth is welcome news for tenants, affordability has suffered over the past few years, with median single-family rents increasing by about $500 nationally since February 2020.”
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 3.3%, down from 11% in October 2022
- Lower-middle priced (75% to 100% of the regional median): up 3%, down from 9.8% in October 2022
- Higher-middle priced (100% to 125% of the regional median): up 2.6%, down from 8.8% inOctober 2022
- Higher-priced (125% or more than the regional median): up 1.8%, down from 7.4% in October 2022
- Attached versus detached: Attached single-family rental prices grew by 3% year over year in October, compared with the 2.1% increase for detached rentals
Of the 20 metros shown in Table 1, San Diego posted the highest year-over-year increase in single-family rents in October 2023, at 5.2%. St. Louis registered the second-highest annual gain at 5%, followed by Boston and New York, both at 4.7%. Austin, Texas (-2.1%) and Miami (-1%) posted annual losses, while rent growth was flat in Phoenix.
The next CoreLogic Single-Family Rent Index will be released on January 16, 2024, featuring data for November 2023. For ongoing housing trends and data, visit the CoreLogic Intelligence Blog: www-corelogic-com.corelogicstg.wpengine.com/intelligence.
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. The rental listings used to calculate the index include both attached and detached single-family homes, as well as condominiums. CoreLogic constructed the SFRI for close to 100 metropolitan 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 Rental Trends. Rental Trends 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.
Source: CoreLogic
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Media Contact
Robin Wachner
CoreLogic
[email protected]