Its Single-Family Rent Index reveals further gain for nationwide rents
There was a 3.0% rise in monthly rents for single-family homes in August according to a new analysis from CoreLogic.
The firm’s Single-Family Rent Index saw an annual gain slightly below the 3.1% rise of August 2018, based on rent price changes nationally and among 20 metropolitan areas.
While rents at the lower end of the market (rent prices less than 75% of the regional median) remain the drivers of the index’s increase, they have eased back from the 4.1% annual gain seen in August 2018 to 3.7% in August 2019.
For high-end rentals (rent prices at least 125% higher than median) rents increased 2.7% in August 2019, up from a gain of 2.6% in August 2018.
Overall gains have also settled, having peaked at 4% in February 2016.
“National rent increases have settled in around 3% over the past year, and the rate of increase for entry-level rentals has eased over the past six months,” said Molly Boesel, principal economist at CoreLogic. “However, home-buying affordability remains a top concern across generations and is keeping many consumers in the rental market. If this trend continues, we may see another uptick in rent price growth in the coming year, particularly in urban areas where we’re seeing increasing demand from millennials.”
Phoenix, AZ, continues to lead the metros where annual rent increases are far above the national average, at 6.6%.
