Key Takeaways:
– Single-family rent prices in the US only rose by 2.6% year over year in September, the lowest growth in three years.
– Low-tier rental gains are slowing, but they have still surpassed higher-priced counterparts since early 2020.
– Rent growth changes varied across different price tiers: lower-priced (3.6%), lower-middle priced (3.1%), higher-middle priced (2.3%), and higher-priced (1.9%).
– Attached single-family rent prices grew by 3% year over year, while detached rents grew by 2%.
– St. Louis had the fastest year-over-year increase in single-family rents at 6.5%.
– San Diego and Boston recorded 6% and 5.1% annual rent growth, respectively.
– Austin, Texas, Miami, and Las Vegas had the biggest annual declines in rent prices.
HousingWire:
Single-family rent prices in the United States only rose by 2.6% year over year in September, the lowest rent growth recorded in three years. That’s according to CoreLogic’s Single-Family Rent Index (SFRI), which analyzes single-family rent price changes nationally and across major metropolitan areas.
“Single-family rent growth eased again in September and is now back to the rate recorded before the pandemic,” Molly Boesel, principal economist for CoreLogic, said in a statement. “While low-tier rental gains are slowing, they have still surpassed those of their higher-priced counterparts since early 2020. Slowing month-over-month rent growth in September reflects typical seasonal patterns, but indications are that annual gains will remain positive through the rest of 2023.”
CoreLogic examined four tiers of rental prices: lower-priced (75% or less than the regional median); lower-middle priced (75% to 100% of the regional median); higher-middle priced (100% to 125% of the regional median) and higher-priced (125% or more than the regional median). The data firm also analyzed two property types: attached versus detached homes.
For these categories, rent-growth changes in September 2023 over September 2022 were:
- Lower-priced: Rent growth was up 3.6% versus 12%.
- Lower-middle priced: Rent growth was up 3.1% versus 11.4%.
- Higher-middle priced: Rent growth was up 2.3% versus 10.6%.
- Higher-priced: Rent growth was up 1.9% versus 8.7%.
Meanwhile, attached single-family rent prices grew by 3% year over year in September; detached rents grew by 2%.
St. Louis posted the fastest year-over-year increase in single-family rents in September 2023 at 6.5%. Meanwhile, San Diego and Boston recorded 6% and 5.1% annual rent growth, respectively. Austin, Texas, Miami and Las Vegas posted the biggest annual declines of -1.4%, -0.7% and -0.2%, respectively.
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Property Chomp’s Take:
In recent news, the Single-Family Rent Index (SFRI) by CoreLogic revealed that single-family rent prices in the United States experienced the lowest growth rate in three years. The year-over-year increase in September was only 2.6%, indicating a significant slowdown compared to previous years.
Molly Boesel, principal economist for CoreLogic, stated that the growth in single-family rents has returned to pre-pandemic levels. While low-tier rental properties have seen a decline in growth, they still outperform their higher-priced counterparts since early 2020. The slower month-over-month growth in September is attributed to seasonal patterns, but the data suggests that annual gains will remain positive for the rest of 2023.
CoreLogic analyzed different tiers of rental prices and property types to gain insights into the rental market. The four tiers examined were lower-priced, lower-middle priced, higher-middle priced, and higher-priced properties. In September 2023, the year-over-year rent growth for these categories were as follows: lower-priced (3.6%), lower-middle priced (3.1%), higher-middle priced (2.3%), and higher-priced (1.9%).
The analysis also compared attached and detached single-family rent prices. Attached homes experienced a 3% year-over-year growth, while detached homes saw a 2% increase.
Among the major metropolitan areas, St. Louis had the highest year-over-year increase in single-family rents in September 2023, with a growth rate of 6.5%. San Diego and Boston followed closely with annual rent growth rates of 6% and 5.1% respectively. On the other hand, Austin, Texas, Miami, and Las Vegas had the largest annual declines in rent prices, with -1.4%, -0.7%, and -0.2% respectively.
The data provided by CoreLogic’s SFRI highlights the current trends and changes in the single-family rental market. It indicates a slowdown in rent growth, particularly in higher-priced properties, while lower-priced properties continue to perform relatively well. The analysis also reveals variations in rent growth across different regions, with some cities experiencing significant increases and others facing declines.
As the real estate market continues to evolve, it is essential for landlords, tenants, and investors to stay informed about these trends. The
