Rent prices increase more than five-fold year over year
Single-family rent growth rebounded from last year’s weak growth, accelerating 7.5% year over year in June.
That percentage was higher than the 1.4% year-over-year national rent increase seen in June 2020, according to data from CoreLogic’s Single-Family Rent Index (SFRI) released Tuesday.
“The recovery was even more pronounced for detached rentals, which had rent growth more than double that of attached rentals,” said Molly Boesel, principal economist at CoreLogic. “Ultimately, for would-be homebuyers who have been either priced out of the market or unable to find a home in today’s supply-constrained market, detached rentals are overwhelmingly preferred — and remain in high demand.”
Read more: US housing affordability hits decade-low
Rent across all price tiers increased in June. Rent prices among the low-end tier (properties with rent less than 75% of the regional median) were up 2.3% year over year. Both lower-middle priced (75% to 100% of the regional median) and higher-middle priced (100% to 125% of the regional median) posted an annual gain of 1.5%. Higher-priced rentals (125% or more than the regional median) saw a 1.2% year-over-year increase.
Phoenix remains the metro with the highest year-over-year increase in single-family rents in June 2021 at 16.5%. Las Vegas (12.9%), Tucson, Ariz. (12.5%), Miami (12.4%), and Austin (11.9%) followed.
Meanwhile, rent prices in Boston are plunging. For 11 consecutive months, the metro saw the largest decrease in rent prices, down by 2.7% in June.
“Hot housing market conditions have exacerbated the challenges of finding affordable rental properties for some consumers. According to a recent CoreLogic survey, 85% of consumers searching for a home said they prefer single-family homes,” CoreLogic said in a release. “However, for-sale inventory remains in short supply as construction continues to lag. Not only is this keeping many would-be buyers on the hunt for single-family rentals, but it’s also contributing to the dwindling availability and increasing prices of these properties. As space and affordability remain top priorities for renters, we can expect to see a similar trend as the for-sale market — increased migration to less dense and lower-cost areas.”
