Report: August National Rent Growth Slow, Steady
U.S. single-family rent prices were up by 2.4% year over year in August, the lowest rate of growth recorded since last fall, CoreLogic reported.
WASHINGTON — U.S. annual single-family rent growth remained below 3% in August but is still up by 33% since the beginning of the pandemic.
Expensive coastal metros led the country for gains, and although Sun Belt markets are no longer as hot as they once were, some of those areas have put up significant increases over the past four years, including Miami (55%), Orlando (41%), and Phoenix and Tucson (both 38%).
“Single-family rent growth slowed in August from both a year and a month ago,” said CoreLogic Principal Economist Molly Boesel. “The monthly drop in single-family rents of 0.2% was notable as it was contrary to the typical August increase of 0.3% and therefore points to quickly decelerating single-family rents. However, some metro areas bucked the national trend — the top metros in rent growth in August all had accelerating gains from a year ago.”
Of the top 20 statistical areas that CoreLogic tracks in this release, seven posted gains of 4% or greater, and seven metro areas had median rents above $3,000.
Of the 20 metros, Seattle posted the highest year-over-year increase in single-family rents in August 2024, at 5.8%, followed by New York, and Washington, D.C. (both 5.5%). Austin, Texas saw rents fall by -2.3% year over year, while Phoenix posted no annual change.
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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