US Single-Family Rent Growth Continues Yearlong Descent in April, CoreLogic Reports
- Single-family rent growth continued to slow year over year in April to 3.7%, down from about 14% at the same time in 2022
- All U.S. metros for which CoreLogic tracks data saw rents increase by single digits or less, except for Las Vegas, which posted a small annual loss
- Despite the slowing gains, single-family rental costs are still up by more than 25% since the onset of the pandemic
IRVINE, Calif., June 20, 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. single-family rent increases dropped on an annual basis for the 12th consecutive month in April, registering a 3.7% gain, significantly less than the 14.2% growth observed in the same month in 2022. Still, overall rental costs are up by 26% since before the pandemic, reflecting continued strong demand and low inventory. As in the previous three months, most of the metro areas for which CoreLogic tracks data saw single-digit annual increases in April, with the exception of Las Vegas, which recorded a decline of less than 1%.
“Single-family rent growth has slowed for a full year, and overall gains are approaching pre-pandemic rates,” said Molly Boesel, principal economist at CoreLogic. “Prior to 2020, single-family rent gains increased in the range of 2% to 4% for nearly a decade. However, even though growth has slowed over the past year, rents have increased by 26% since February 2020.”
“Furthermore, it appears that rent growth is bottoming out, meaning that increases in single-family rents over the past three years are more or less permanent,” Boesel continued. “The increases, especially at lower price levels, erode affordability and cause tenants to devote more of their monthly budget to rents, leaving fewer funds for other necessities.”
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 6%, down from 14.1% in April 2022
- Lower-middle priced (75% to 100% of the regional median): up 4.6%, down from 14.8% in April 2022
- Higher-middle priced (100% to 125% of the regional median): up 4.1%, down from 14.9% inApril 2022
- Higher-priced (125% or more than the regional median): up 2.4%, down from 13.5% in April 2022
- Attached versus detached:Attached single-family rental prices grew by 4.6% year over year in April, compared with the 2.6% increase for detached rentals
Of the 20 metro areas shown in Table 1, Charlotte, North Carolina posted the highest year-over-year increase in single-family rents in April 2023, at 6.9%. Boston and Orlando, Florida registered the next highest annual gains, a respective 6.2% and 6%. Las Vegas saw an annual rent price decline of -0.8%.
The next CoreLogic Single-Family Rent Index will be released on July 18, 2023, featuring data for May 2023. 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 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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